Social Security Contributions

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Hi, I need general advise. I have a collegue who is employed in uk and self-employed in Poland. He is UK resident. I helped him applied for a portable document A1. He got it, but the National Insurance Team said that he has to register for self-employment in UK as well. They said he needs pay NIC Class 1 from employment and NIC Class 2 from self-emploment. Is that right? What about tax? I was thinkin that he has to declare polish income in UK but has to pay tax from this income in Poland. Am I right? In that case how to fill the tax return if his self-employment income from UK will be zero. 

Do this registration for self-employment is just for NIC purposes? Not for tax purposes? Do I understand it right?

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By bajones
27th Jul 2017 13:28

You do not. I think the crux of the matter is that, as a UK resident, any self-employment, whether undertaken in the UK, in Poland, or on the moon, is UK source in the eyes of HMRC and so taxable in the UK.

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By sash100
29th Jul 2017 00:03

He may well end up paying tax in two places and claim a tax credit based on the Double Tax Treaty. Suggests he takes professional advice.

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