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UK Tax resident paid by Czech Employer

Employee paid by Czech employer in the UK

I have a client who is UK tax resident (always has been) has been offered a job by an employer who is based in Czhec Republic however, my client will be based and working in the UK.  My understanding is that since my client will be working in the UK, the Czhec employer will pay him gross salary via payroll which will be taxed in the UK at UK rates.  I am not sure about his class 1 national insurance status.  Your input will be appreciated.  Thanks.

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18th Oct 2018 21:12

Assuming the Czech employer has no "tax presence" in the UK - see https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye81610] - then the employee has to pay his income tax under self assessment. This will be a cash flow issue when the first SA100 has to be filed, because of having to pay both historic and on account payments at the same time. The employee will have to pay Employee's NIC, but not Employer's.

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19th Oct 2018 09:17

He will be liable to NI, however the NI obligation falls on the employer (because the employer is in the EU). As Montrose says tax will be due via the tax return.

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