Dear Sir/Madam, I am UK resident and I have been headhunted…

Hi

Thanks for your question

As you would remain as resident in the UK for tax purposes, you would be liable to UK tax too. However as we have a double taxation treaty in place with Denmark, any tax you suffered in Denmark against this income could be used to offset any arising tax liability in the UK.

You should arrange to complete form P85 for the UK tax office (HMRC) link here for this form,

http://www.hmrc.gov.uk/cnr/p85.pdf

for them to

1) Be aware that you have this employment and are paid from abroad AND

2) That you should be treated as resident in the UK and liable to UK tax.

You will then be sent a UK self assessment tax return after each 5th April - to advise the income earned and the tax suffered for HMRC to establish your UK tax position.

In the UK - as you are probably aware - the first £7475 is tax free (assuming your total income for the year is less than £100,000) and then the next £35,000 at 20% and the next £115,000 at 40% (then 50% on any income in excess of £150,000)

As this is a UK tax forum we have no expertise on Danish Tax, but I do know that the rates in Denmark are very high and this is why you will have what appears to be a combined tax charge of 34% - but as for the threshold on which this applies, you will need to seek tax advise from a Danish tax expert in Denmark

Thanks

Sam