01-04-12, 04:37 PM
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.
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.