if you stay outside of the UK for a full tax year: April 6 to April 5 and don't break the 90 day rule, then you don't pay tax on your foreign earning for the complete period from day of leaving until day of return.
You will still pay tax on Uk investment income, house rental etc
tim
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Reply to: Newbie with a question as usual
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Previously on "Newbie with a question as usual"
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Thanks Tim
But after re reading my last response I realise I was not clear in my question. When I was referring to expenses I actually meant those that will be paid into a UK account. Is Mr Brown eligable to any of this?. I am fairly happy with the German side of things including the bits of card.
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German second home expenses used to be payable without being reported but now they have to go your wage card. (The Finanzamt have this wonderful Hi Tech system as follows:
You have to go to the Tax office at the start of each year and collect a cardboard form.
You then give this form to your employer.
He writes your salary/tax deductions each week.
Only joking - after the first year they post you the form).
Assuming by 'overses expenses' you mean someone who has come from overseas then there is no difference, except that your flights home might cost more than a local will pay to get the train home. But with Ryanair, perhaps not).
In theory they can ask for receipts, but will only do so if the amount claimed is high - one of my colleagues commuted 140km to work each day, they asked for, and got, his petrol receipts, a shoebox full.
This is the 'official' system.
tim
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Thanks Tim
So I assume that I am supposed to declare these expenses? I have been lead to beleive that these will be classed as German expenses. Do you know what the limit is for overseas expenses?
Sorry for all the questions. I am just looking for a little clarity.
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Yes, you have to fill in the UK non residency form.
Up to a limit, expenses for second household in Germany are non taxable. But you do have to still have your first house (in the UK) available for you to occupy and a genuine reason to travel back to it. It could be that the compay paying you these 'expenses' aren't expecting you to declare them.
No GB won't get any of your salary because the Finanzamt will have taken away much more than GB will ever aspire to.
There are lots of solutions that let you keep more of your money. They work on the "getting away with it" rule.
The best fully legit solution is to work as a self employed Freiwilligenarbeiter
(I think that is the word).
tim
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Newbie with a question as usual
Hi all
Newbie here with a few questions. Not too sure where to post so I have posted here and on the business forum.
I have been offered a contract in Germany. The payment will be split, part paid as a salary into a German account and the remainder as expensess paid into a UK or offshore account. The contract should be for up to 2 years.
Do I have to fill out a non residency form with the IR?
Will my expenses by liable to taxation?
Will the German salary be liable to Mr Browns grubby fingers?
Are there any better solutions out there which maximses my retention whilst keeping all money grabbing service happy.
Thanks in advanceTags: None
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