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Where Taxpayers and Advisers Meet

New Job - Confusing tax situation

Posts: 1
Joined: Thu Jun 07, 2018 8:35 am

New Job - Confusing tax situation

Postby Shawshank68 » Thu Jun 07, 2018 9:46 am

I leave my current UK job mid August when I will obviously get my P45 - no confusion there.

However, my new job is with a German company who will be paying me, a UK resident, to perform work for them all over the world including the USA primarily (I am fully Visa'd up for USA and will never be there long enough or purchase any property to go for citizenship there either!)

They have no UK entity and, although a UK resident, I actually won't be in the UK much at all <30 days in the year but will be retaining roots and ties to the UK as well as being registered at a property and will not be in Germany as a resident ever apart from hotels here and there.

So, for tax purposes, I am assuming I will still pay UK Tax and NI although not through PAYE?

Would my German company pay me a gross amount which I then set aside money for Tax and NI to pay manually at tax return time?

The German company haven't done this before so I can't rely on them to get it right!


Posts: 633
Joined: Fri Dec 05, 2014 1:18 am

Re: New Job - Confusing tax situation

Postby GlobalTaxAdviser » Thu Jun 07, 2018 11:26 am


Most likely tax resident this year and maybe non resident the following tax year

You employer must set up an NI scheme to pay both the employee/Employer National Insurance, leaving the you to set up a DPGEN scheme to pay his own tax or just pay through self-assessment.

Your employer should check by your presence if it has created a permanent establishment in the UK which could bring other tax consequences. If this is the case then they could register the employer under the UK Limited company which maybe simpler

Kind Regards


Posts: 226
Joined: Thu Aug 16, 2012 4:31 pm

Re: New Job - Confusing tax situation

Postby DavidTreitel » Fri Jun 08, 2018 8:44 pm

As you will be providing personal service income in the United States the employer will need to withhold US Federal and/or State tax on US source wages. Is this organised? Can your employer share with you the advice they have obtained on these issues?

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