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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5113
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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From next March, I will live in Germany but work three days

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From next March, I will live in Germany but work three days a week for a UK company (on a UK contract) in London and then two days a week from home in Germany. So I will be working most of the time in the UK but living more time in Germany. Will I have to pay tax in both countries?
Thank you for your question. As you are going to have work ties in the UK (3 days a week), you will be regarded as UK resident for tax purposes and your earnings will be chargeable to UK income tax.If these earnings are taxed in Germany, you will be able to claim foreign tax credit relief against tax suffered in Germany under Double taxation agreement between the two countries. You will not be taxed twice on income from one source.More infomation on this can be found in HMRC guidance RDR3 (pages 29 onwards cover UK ties) I hope this is helpful and answers your question.If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
Customer: replied 2 years ago.
Thank you for your swift response.I have two more questions:1. So it doesn't matter that I will physically spend more time in Germany? I was confused by some 180 days things I was reading in the double taxation agreement. Because whilst I will be working three days in London, I will only be sleeping two nights in the UK.Plus, you have used the word 'if' about the possibility of being taxed in Germany. So, I could potentially have to pay German tax and claim back the credits? Do you know if this is the case or I would have to get advice from the German tax office on whether I would automatically be exempt?thanks
Thank you for your reply..Rules on residency have changed with the introduction of statutory residency test. It would appear you don't pass the automatic overseas test. You will be resident in the Uk for less than 183 days but because you have ties in the UK you would be treated as UK resident for tax purposes.If you are being paid by a UK employer the likelihood is the this income would be exempt from being taxed in Germany. I am not an expert on German taxation. You are best advised to liaise with German tax authorities on this matter. I am not certain on residency tests in Germany for tax purposes.I hope this is helpful. and other Tax Specialists are ready to help you