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Sam
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Category: Tax
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Good evening I am an Electrical Engineer, and I have my

Resolved Question:

Good evening

I am an Electrical Engineer, and I have my own Limited Company.
I have been offered a position in Germany on an approximate 12 month contract via a large American construction company.
I have conducted some research and found if I am employed in Germany for over 183 days I shall be subjected to pay German Tax.
I would be earning approximately 80,000 euros per annum, which would subject me to the 42-45% tax bracket. In addition, I shall also have to pay UK tax on my return to the UK, and the financial year.

Could you please advise.
Kind regards
R R Williams.
Submitted: 3 years ago.
Category: Tax
Expert:  Sam replied 3 years ago.
Hi R R Williams

Thanks for your post, I am Sam and I am one of the UK tax experts here on Just Answer. You do not actually ask a question, so I will advise the following in the hope this meets your requirements, if not then please do ask follow up questions -


Will you be earning this money through the limited company, if so then this will remain liable to Corporation tax, and although you can claim a tax credit for the German tax suffered, this can only be awarded as equal to the UK tax position.

Then as an individual with any salary you draw, this may too also remain subject to UK tax, as although you advise this will be a 12 month contract, unless this sees you out of the UK for at least a full tax year during which your visits back to the UK do not exceed 90 days (and none of these for main duties/work purposes) then you remain liable to UK tax, as you will be treated as resident throughout.
If you earn this away from the limited company - so as an employee/sole trader then the personal tax position advise is the same. But then you are credited with the German tax suffered, which will use more of the foreign tax suffered, if you are then a 40% taxpayer, so lessen your UK tax position. This might be a consideration.

Thanks

Sam

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