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taxadvisor.uk, Chartered Certified Accountant
Category: UK Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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UK - Germany tax PAYE

This answer was rated:

I am employed by a UK company who pay my PAYE to HMRC.

I have been contracted out to a German company that i have been working for 12 months. I will only work for a maximum of 24 months for this company and return to the UK.

I am paying PAYE to HMRC for the 24 months while in Germany.

is this correct? please advice

Hello, if you have any questions or need further clarification after reading my answer please let me know.

 

Please advise if you are physically out of the UK and living in Germany?

If so, when did you leave the UK?

How often do you visit the UK?

 

many thanks

Customer: replied 3 years ago.

I have physically moved to Germany and moved out on the 1st June 2012.


 


I visit the UK for about 30 days a year.


 


My employer advised me i do not need to pay German tax or register as a citizen for at least 2 years.


 


I also have a problem as i believe he may not be paying HMRC any tax on my behalf and not registered me as an employee. Is he commiting an offence when he is removing the PAYE from my pay slip.


i am gravely concerned.


 

Thank you for your prompt reply.

 

Please leave this with me and I will revert with my answer shortly..

 

Many thanks

 

Thank you for your prompt reply.

I am not sure whether you left your employment with the UK company and were given a P45 when you physically moved to Germany in Jun 2012. If that were the case then you should have completed a form P85 leaving the UK – getting you tax right.

More information on P85 can be found here
http://www.hmrc.gov.uk/cnr/p85.pdf

In the absence of a P45 let’s assume you are still on UK company payroll. You should soon be getting a P60 from your employer showing your earnings and tax deduction for tax year ended 5 Apr 2013.
Unless you are outside the UK for a full tax year you are deemed resident of UK for tax purposes and continue to pay tax to HMRC.
In order to get exemption from UK tax you should be out of the country for a whole tax year. In your case, if you remained outside the UK until at least 6 Apr 2014 you will not be resident in the UK for that tax year (see S 8.3 on top of Page 45 of HMRC6).

Your visits to the UK after you left to begin your overseas employment should not exceed 183 days in any tax year and 91 days a tax year based on an average taken over rolling four years. Number of days allowed in the UK to maintain non resident status are explained in sec 8.5 on Page 47.

HMRC guide on Residence etc can be found here
http://www.hmrc.gov.uk/cnr/hmrc6.pdf

If you need more information please let me know before you rate my service.

I hope this is helpful and answers your question. I am available for any follow up questions you may have, and you can use the reply button to post your follow up questions to the page.

Hi

I notice you have viewed my response to your original question

(Customer Last Viewed on 5/3/2013 at 6:11 PM).

Just checking to see if you have any issues relating to your question that I may not have addressed.

If you do not receive from your UK employer a P60 showing your earnings from employment and tax deducted for tax year ended 5 Apr 2013 by the end of this month, then you should write to him formally and ask for one. I presume you have proof of deductions made from your gross salary (payslips etc.)

Please let me know if I can be of further assistance.

If you are happy and there are no more issues I will appreciate if you would kindly rate the service I provided to ensure I get paid for it.

Customer: replied 3 years ago.
Hello
Thank you, XXXXX XXXXX be illegal if my employer had been removing tax from my wage and not paying to HMRC.

Thank you for your reply.

 

If your employer was deducting tax from your salary under PAYE and not forwarding it to HMRC then the employer is defrauding HMRC and it is an offence. HMRC would carry out a payroll audit and if found guilty the company will be charged interest and penalty.

 

Please let me know if I can be of further assistance.

 

If you are happy and there are no more issues I will appreciate if you would kindly rate the service I provided to ensure I get paid for it.

 

 

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