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Posted Fri, 06 Jan 2023 11:20:29 GMT by okulah
Hi, I am tax resident in the UK and I have received an job offer from a Germany-based company which does not have any presence in the UK. I will work on a remote basis fully, ie I will be working in the UK. I will be on the payroll of the company and I've been said that personal income tax and insurance contribution will be deducted from my gross salary and paid to German tax authority. 1- Should I declare this employement income in the UK as well? 2- If I should, am I eligible to deduct taxes paid from my salary in Germany?
Posted Wed, 11 Jan 2023 12:43:22 GMT by HMRC Admin 19

You can see guidance here:

Tax on foreign income  

If you are resident and domiciled in the UK, then your employment income is taxable in the UK and should be declared on a Self Assessment tax return. You can claim Foreign Tax Credit Relief on the tax paid in Germany.  

You can register here:

Register for Self Assessment

Thank you.
Posted Mon, 30 Jan 2023 13:49:34 GMT by kladri
Hello, I am in a similar situation, working for a German company and getting taxed at source in Germany. I understand that I need to decalare my German employment income on my Self Assessment tax return and then I can also claim Foreign Tax Credit Relief on the tax paid in Germany on my Self Assessment tax return. This would lead to me paying very little or no tax in the UK (if the UK tax was higher than the German tax I would pay the difference or nothing if it was the other way round). Could you confirm that this is ok even though I work most days from my home office in the UK? Many thanks.
Posted Thu, 02 Feb 2023 09:48:48 GMT by HMRC Admin 25
Hi kladri,

A foreign tax credit relief on employment tax is up to 100% of the tax paid in the other country.

 This means that your UK tax liability is calculated first and then the tax credit applied.

 If the UK tax liability is greater than the relief, then the full relief of 100% can be applied.  

Where the UK tax liability is less than the tax paid in the other country, then only enought relief can be applied to cover the UK liability.

 Further guidance can be found here:

Relief for Foreign Tax Paid 2022 (HS263)

Thank you. 


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