Might be working for a German company - help needed

[moffmeister]

I should be receiving an offer from a German company for a job next week


They think they want to employ me via the German company (and not through the UK Ltd sister company) - I'm not sure (and neither were they when I asked them!) what the UK tax/NI implications of this are?  There is also a question whether I will get paid in GBP or Euros? :eek


I will be working predominantly in the UK (with monthly trips to Munich)


Anyone any experience and/or knowledge here?


Secondly, the whole aim of the job (the one I am hopefully going to get  ) is to manage projects construction projects (waste to energy) in the UK - again they seem to be of the understanding they can do and manage all the purchasing/sub-contracting to UK suppliers from Germany - again I'm not so sure?

[UG]

I've worked in Germany mate, but directly employed so no experience of this set up. You would be best advised to contact HMRC and ask about your tax and N.I. 

If your going to Munich mate heres a few phrases you might need:
Vor treffen wir uns heute abend/ where shall we meet tonight
Um wie viel uhr/ at what time
has du deine tage/ are you on
nehms du pilla/ are you on the pill
Kein angst Ich hab kondome/ dont worry I've got johnnys

[BIG MAC]

Moff EU rules mean should be ok. however your tax liability will fall in the UK whether paid in Euros or not...I would ask for a £ salary as the £ is strengthening against the Euro and until the Greece Portugal Spain Italy fiasco plays out ...probs safer. You could ask them for a contract to supply 'Management services' (not construction if you can avoid it) for 12 months renewable or whatever period suits...very advantageous tax wise ;-) Good news

[AdieR]

As I understand it, if you're based (and resident) in the UK, your tax / NI will fall under UK rules and rates (and paid in GBP), even if its a foreign owned firm. If you're likely to be based (resident) in Germany, the tax will fall under their tax system (which also means that you'd have to have a German social security number). If you're simply visiting Munich but living here, you shouldn't need this.

As for purchasing / sub-contracting from Germany, I don't see a problem, except maybe distance if there's a problem on-site for example (how easily can they get someone over if a problem arises?).

[Orangegrump]

As there will be an employee conducting gainful employment in the UK there is an obligation to comply with the PAYE regulations.
The obligation to operate PAYE and deduct NIC will fall firstly on the German employer if it has a  place of business in the UK.  If not, there are regulations that would possibly deem the "sister company" to be a deemed employer for the purposes of operating PAYE and deducting national insurance contributions (NIC)
If not, the employee's address can be deemed by HMRC to be a place of business and  the obligation to deduct PAYE and NIC will fall on the employer.
I suspect that your salary will be paid through the "sister company" and there will be some inter company charge between Germany and UK to cover the cost of your salary costs.
The German company can operate out of Germany into the UK but they may need to register a UK branch for corporation tax purposes and register for VAT if taxable supplies to UK exceed the registration limits.
The rules on VAT on services may also be in point, but I am unable to advise further as I am unsure of what exactly is being supplied.

[Grahamm]

If your going to Munich mate heres a few phrases you might need:

And don't forget:

Mein Luftkissenfahrzeug ist voller Aale

And:

Zwei Weltkriege und ein Weltmeisterschaft

[goldfazer]

And don 't mention the war :thumbup