employment EU & part time Self employment UK

NIC and Tax if working 2 countries same time EU & UK

Didn't find your answer?

Hello,

Ive been working UK as self employed care assitant since 2012. This October planning to move to other EU country to study and planning to look for a job there based on the subject Im about study.  Im trying to find out is it possible to remain SE in UK and  lets say work 3 weeks overseas (employed) and 1 week UK (self employed)? How would NIC be calculated and how would be tax applied as I would be mostly working in overseas country and paying social security payments there? As I understand, normaly the NIC or social security payments are paid in the country you live and work (which would now be elswhere EU), but does that mean I wont be able to do any extra work abroad anymore? How and where would be tax applied in the situation mentioned above? I was guessing that as the countries has double taxation treaty, then the tax on home country income would be held there and any UK income would be taxed in UK. But aparrently it isnt that easy as-

Today I asked this to my accountant but the answer was that I cant be employed in one country and self employed in UK, as the confusion with the NIC (which in new home country would be "social security payments") would occur. Could any comment this anyhow? Is it really so that I cant be self employed UK anymore because I would be working in other EU country?

Any comment or links to a relevant information will be appreciated. Thank you!

Replies (3)

Please login or register to join the discussion.

avatar
By bajones
21st Jul 2017 08:40

Your accountant may not be well versed in residence issues.

https://www.gov.uk/government/publications/national-insurance-working-in...

As HMRC say "Use the online form to find out which country's social security legislation applies to you."

This includes situations with a combination of employment and self-employment.

You might want to get some one-off advice from a tax adviser, as it sounds like there might be residence issues to think about too.

Thanks (1)
Caroline
By accountantccole
21st Jul 2017 13:45

I had a client who was self employed in the UK on weekdays, went back home to his family at the weekend. My understanding is that as the SE is in UK NI is payable, unfortunately as his family were in France the French authorities also wanted to make social charges on the income. Double tax adjustment was fine but there is no relief for NI/social charges.
Definitely worth further investigation. Agree with bajones you may have residency issues too. Not a straight forward area

Thanks (1)
avatar
By eve019
21st Jul 2017 22:44

bajones and accountantccole thank you for your comments!Can I ask you what do you mean by residency issues? Is it that there would be difficulties between both countries to decide where I would be resident?

accountantccole - I have heard that France is especially fussy and bureaucracy also does not make things easier. Somehow i feel that it might be with the country Im going to study as well, thats why I want to prepare and find out where Im standing legislation wise.

Reading this https://www.gov.uk/tax-foreign-income/residence makes me think that being non resident I would pay income tax on wages arising UK.

But then, if Im 250 days present in other EU country working lets say full time and then 115 days working in UK would be against whats written there "You’re automatically non-resident if either:you work abroad full-time (averaging at least 35 hours a week) and spent fewer than 91 days in the UK, of which no more than 30 were spent working." (because I would definatley spend more days than 30 working UK if that ever turn out possible). Is that where the residency issue arises then?

My own reading into this subject has led me to the this: https://www.gov.uk/tax-uk-income-live-abroad/overview
which made me think that being self employed would still be possible but additional form (https://www.gov.uk/government/publications/self-assessment-residence-rem...) in which I show how many days I have spent in UK and other country and amount which is earned and taxed overseas (double taxation treaty). Very limited information about the NIC payments though.

Definately I will look for international tax advisors help.

One more question - would situation be anyhow easier if I would work UK on PAYE basis? Or would that still make confusion between countries tax and NIC systems? I wonder how summer workers / holiday workers get trough then paying NIC in two countries (if being employed in their home country rest of the year), that makes me think that somehow it is possible to work in 2 countries somehow?

Thanks for your help and comments. x

Thanks (0)