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Posted Tue, 02 Apr 2024 10:15:45 GMT by de12345
Hi, I am a UK resident who does IT contracting for a company based in Malta. I operate as a sole trader and have been doing so for 2 years. I have paid tax and national insurance via self assessment. I had a few questions: 1) Do I also owe any tax, NI or anything else in Malta? Or is there a tax treaty which means I only need to pay UK tax? 2) If I were to become a full time employee of the company in the future, who would be responsible for paying employers national insurance? Me or the employer? The Maltese company has no UK tax presence. 3) Following on from 2), would I need a DPNI scheme? Or is that the responsibility of the employer? Thank you.
Posted Tue, 09 Apr 2024 13:16:26 GMT by HMRC Admin 32

As UK resident you will include the income as part of your self employment turnover and pay the tax and NI in the UK.

This applies to all scenarios you mention.

Thank you.
Posted Tue, 09 Apr 2024 13:26:19 GMT by de12345
Thanks for the reply, although some things aren't completely clear still. I'm more referring to employers NIC. I do a self assessment every year and pay my income tax and class 4 national insurance via that for this work. But in relation to class 1 NIC, what do I need to do if this changes to employment, or is classed as employment for tax purposes? Your CEST tool technically deems this as employment for tax purposes (even though it's freelance work). Do I have any liability for class 1/employers NIC in this case? There's no way to pay such an insurance via self assessment, hence I was referring to the DPNI scheme
Posted Thu, 18 Apr 2024 08:50:35 GMT by HMRC Admin 25
Hi de12345,
Freelance employment is classed as self employment.
You will declare the income from the maltese client as part of your UK turnover and pay Class 2 NI  and Class 4. a DPNI scheme is not required1
Thank you. 


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