Working in UK for a German Company
Discussion
I need some advice on working for a German company in the UK.
Basically, I have just started working for them in the UK as Sales Director. The company is already selling products in to the UK but is invoicing and delivering from it's head office in Germany.
I have been employed to build up the infrastructure in the UK, eventually opening an office and warehousing.
In the meantime it will just be me, quickly followed (I hope) by a sales team. I am being paid on a salaried basis but as they don't have a UK company they are going to pay my gross monthly salary directly in to my bank account and I will have to make my own arrangements to pay tax and NI etc.
Is this a straightforward thing to do, or should I set up my own company and become technically self-employed whilst actually being employed - what do you think?
Basically, I have just started working for them in the UK as Sales Director. The company is already selling products in to the UK but is invoicing and delivering from it's head office in Germany.
I have been employed to build up the infrastructure in the UK, eventually opening an office and warehousing.
In the meantime it will just be me, quickly followed (I hope) by a sales team. I am being paid on a salaried basis but as they don't have a UK company they are going to pay my gross monthly salary directly in to my bank account and I will have to make my own arrangements to pay tax and NI etc.
Is this a straightforward thing to do, or should I set up my own company and become technically self-employed whilst actually being employed - what do you think?
You are a UK based employee, tax resident in the UK and therefore your salary should be paid to you net of PAYE tax and National Insuirance contributions.
It is your EMPLOYER'S responsibility to ensure that they fulfill these legal obligations, not yours.
If they are based overseas, the correct procedure is for them to appoint a UK agent (usually an independent payroll bureau or a firm of accountants) to administer the PAYE and NI on your salary and to make sure the PAYE and NI is paid over to HMRC at the right time.
Sometimes, an overseas company will set up a UK limited company with the UK based sales persson as the one and only employee. The small UK limited company can then be set up as an employer and a payroll bureau/accountant appointed to manage the payroll and accounts function of the UK limited company.
It is unfair to expect an employee to administer their own PAYE.
It is your EMPLOYER'S responsibility to ensure that they fulfill these legal obligations, not yours.
If they are based overseas, the correct procedure is for them to appoint a UK agent (usually an independent payroll bureau or a firm of accountants) to administer the PAYE and NI on your salary and to make sure the PAYE and NI is paid over to HMRC at the right time.
Sometimes, an overseas company will set up a UK limited company with the UK based sales persson as the one and only employee. The small UK limited company can then be set up as an employer and a payroll bureau/accountant appointed to manage the payroll and accounts function of the UK limited company.
It is unfair to expect an employee to administer their own PAYE.
Eric is right of course, I've seen people in similer situation hand over the tax code to the employer and then claim that the the gross they received was the net and the employer failed in the duty to deduct, and the revenue went after the emplyer.
If I was the emplyer here I'd set up somthing in the UK and not use my main business so I would not want a PE for the overseas company.
But assume everyone was honest and the emplyee wanted to pay what was due, sould he? he could pay the tax OK but is it even piossible for him to pay class one NHI? or would he only be able to pay the class 4 stamp?
Interested as I work for a Malysian comany and I refuse to do work in the UK.
If I was the emplyer here I'd set up somthing in the UK and not use my main business so I would not want a PE for the overseas company.
But assume everyone was honest and the emplyee wanted to pay what was due, sould he? he could pay the tax OK but is it even piossible for him to pay class one NHI? or would he only be able to pay the class 4 stamp?
Interested as I work for a Malysian comany and I refuse to do work in the UK.
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