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Self employed in the UK and employed in Germany

Self employed in the UK and employed in Germany

Hi. I have been approached by a new client who is self employed here in the UK. But he has been offered a job in Germany and he wants to know if he might be better off paying all his taxes in one country rather than 2. His overseas salary will be 35000 Euros per year. He is resident in the uk but his family live in Germany. Am i right to advice him as long as there is no remittance between the 2 countries (Bringing the income to the UK or taking his UK income to Germany) he is better off keeping them separate rather than mixing the overall income for the purpose of taxation?

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By Hansa
17th May 2012 12:27

In a word "no"

As there is a DTA between the UK & Germany, ultimately he is resident (and therefore tax resident) in one country or the other.

The tie-breaker in the DTT is ultimately decided on "centre of life" and, as his family resides in Germany AND his principle earned income there, I would think he will probably deemed resident there.  

His UK earnings will of course be taxed and credited against his German tax liabilities

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