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Where Taxpayers and Advisers Meet

Uk based Employment with a Danish company

Posts: 1
Joined: Sat Mar 16, 2019 4:02 pm

Uk based Employment with a Danish company

Postby ElectricEric » Sat Mar 16, 2019 4:06 pm


I’m UK based and being offered full time remote employment with a Danish company.

I have heard that I would have to pay my own NI and tax directly to inland revenue. Is this the case or would the Danish company have to deal with any deductions from my salary?

Thanks in advance.

Posts: 673
Joined: Mon Nov 02, 2009 5:25 pm

Re: Uk based Employment with a Danish company

Postby etf » Tue Mar 19, 2019 10:56 am

UK social security rules provide that no employer class 1 national insurance liability arises unless certain residence or presence conditions are met. This means that the employer must be resident or present in GB or have a place of business in GB when the contributions are payable.

Up until 30 April 2010, where an employer was neither resident, nor had a place of business in the UK, payment of employer NIC contributions could not normally be enforced, unless HMRC successfully argued that the overseas employer had a UK place of business/or the host employer rules should be applied.

However, from 1 May 2010, an employer in another European Union (EU) Member State, with an employee in the UK's National Insurance system is treated as having a place of business and registered in the UK for National Insurance purposes and has to pay secondary National Insurance and deduct contributions from the employee.

It will therefore probably be advisable for your employer to contact HMRC and set-up a National Insurance only scheme.

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