Please sign in to post.

UK Income Tax on temp work?

Hi,

I've been offered a short term job in the UK (9 months employment) and I'm tempted to take it. I currently live in Germany and would be moving into temporary accommodation there. However they've told me that I will need to open another account there as I will be paid from their UK based branch. As I won't be there for a full year, how will income tax work? I would make about £2000 a month after tax according to this calculator while I'm there, which is much more than the personal allowance amount. Who do I need to contact to get tax paid for this, or will I not need to? Thanks in advance!

Posted by
5333 posts

Probably not the best place to post this, since it is a travel board, rather than an overseas employment one. Plus it may depend on your exact circumstances.

However, in general terms if you are on an employed basis (rather than self-employed contractor) then income tax and national insurance contribution is normally handled via your employer (PAYE - Pay As You Earn). If you have a tax liability in another country, particularly if you are a American citizen, then you have to deal with the other appropriate authorities.

Posted by
8889 posts

The normal rule is that if you are in a country for more than 6 months in a tax year, then you are liable for income tax. But, if you pay UK income tax, you should be exempt from German income tax for that period.
In the UK income tax works as "PAYE" (= Pay as You Earn). The employer deducts tax "at source" and pays you the net amount after tax. The only people who have a bill to pay are self employed.

You will need to open a UK bank account because you will be paid in £ (pounds). If you employer paid your salary to a German Bank account (in €), you would both have bank charges.

I am assuming you are a German citizen and therefore there is no work permit issue, at least until BREXIT next March.

Posted by
32935 posts

If you are "currently" living in Germany is it possible that you are neither a German citizen nor an EU citizen?

Posted by
1 posts

You will more than likely be paid via PAYE, meaning tax will be taken before your salary even gets into your bank so you have nothing to worry about - you can calculate that here: http://salary-calculator.org.uk/ . Personally I would keep the UK bank account in case you end up overpaying in tax, which will be returned at the end of the tax year.