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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4195
Experience:  FCCA FCMA CGMA ACIS
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I am a UK resident. I am about to be employed full time by

Customer Question

I am a UK resident. I am about to be employed full time by a German company. I am continuing to live in the UK and will work abroad periodically. I'm not sure who to pay Tax and National Insurance to ? or how to pay it ?
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to assist you with your question. If the German company is employing you in the UK then it should be paying you under PAYE arrangements. In your sort of situation this is normally done using an UK payroll agency to make the necessary payments less deductions. However, I suspect that this may not be happening. You should press for this method to keep your card stamped, to use an old expression. If you are not being paid under PAYE then you will have to make good the NI contributions yourself or risk losing benefits in the long term, you need 35 years of contributions for example to achieve a full State Pension. HMRC will advise you of the amount of liability annually when you self assess. If you are being paid under German taxation regimes then you will have to self assess at the end of each tax year, but under the Double Taxation Convention between the UK and Germany any tax paid there is allowable as a tax credit against any UK liability on the same income stream. The Convention does not, however, protect you from variations in rates of taxation. I do hope that my answer has been of assistance and helped resolve your coniundrum.
Customer: replied 2 years ago.

Thank you, ***** ***** clarify if I am paid gross in Euros to my UK bank account, I will pay my tax annually after a self assessment ? and pay my NI direct myself ?

Expert:  bigduckontax replied 2 years ago.
Correct; you will pay your tax and NI contributions by 31 January (ie for 15/16 you must pay be 31 January 2017)!
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Expert:  bigduckontax replied 2 years ago.
Thank you for your support.