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Mo Tax Expert
Mo Tax Expert, Accountant
Category: Tax
Satisfied Customers: 554
Experience:  Accounting and Tax Expert
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I hope you can help me. I'm currently looking for remote

Customer Question

Hello there, I hope you can help me.
I'm currently looking for remote jobs - but working for a foreign company seems more complicated. At the time I'm in discussion with a company in Germany and I would be their first UK/foreign employee and some questions were raised like who is operating the payroll(as it is different from Germany), how about tax and NI and they would only pay the salary in EUR, as this is their standard.So I looked up some information and need some clarification.. (I don't mind about the fact that they will pay in EUR.)HMRC says with EC Regulation 883/2004 from May 2010:
An employer in another European Union Member State will also be treated as being UK registered or having a place of business in the UK for National Insurance purposes where the employee is in UK National Insurance.
If an employer has obligations in the UK then HMRC will agree for another part of the business based in the UK, for example part of the business responsible for operating PAYE Income Tax deductions or an agent, to act on behalf of that employer.
Where you have no employer in the UK or business treated as your employer, you will be responsible for paying your own employee Class 1 National Insurance, through a Direct Payment Scheme, to HMRC.The company is only located in Germany and they don't have an UK agent or any part of business based within the UK.1) The company needs to register at HMRC for payroll and would need to deduct the NIC from the salary and run a direct payment NI only scheme.
Tax needs to be paid by myself via direct payment tax only scheme or self assessment.2) HMRC also states that a direct payment tax and NI scheme would be suitable as certain criteria is met:
"An individual, who is required to pay their own PAYE Income Tax and NI. These include employees of a foreign employer who has no address in the United Kingdom from which earnings are paid" https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye20100For 1) would they need an agent or business in the UK to do so (as it says another part of the business based in the UK or an agent) or could their HR from Germany operate it?For 2) if this option would be feasible, as it is a foreign employer, no address in the UK from where the earnings are paid, they don't have any business based in the UK nor an agent - I would operate my own payroll on their behalf...The best option would be #2, isn't it? My contact already said that they would not hire me, if they need to put in extra effort and money to hire an agent/agency to perform the payroll just for me. Or are there any other options?
Submitted: 6 months ago.
Category: Tax
Expert:  Virtual-mod replied 6 months ago.
Hello,

I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Expert:  oleksandrav-mod replied 5 months ago.
Hello,
I apologise as we have not yet been able to find a Professional to assist you. Do you wish for me to continue to search for someone to assist you or would you like for us to close your question at this time?
Thank you for your patience,
Oleksandra-Moderator
Expert:  Mo Tax Expert replied 5 months ago.

Hello,

I’ll be happy to help.

If you are genuinely an employee and the overseas employer is refusing to operate PAYE then you need to inform HM Revenue and ask about a PAYE direct collection arrangement - essentially you will operate PAYE on your own earnings.

Let me know if you need any further help.

With thanks,

Mo Barrie