Do I pay UK taxes when working remotely, from UK, for German company?

[Sue B]

Update: Dear All, thanks for your help. I did indeed receive an answer -- and a clear, definitive one - from Sue B . Thanks loads to her for her consummate expertise. With all errors or inaccuracies being mine - here is the answer:

When working for, say, a German company, 3 criteria - call them 'pins' - must be reckoned: (1) where you live during the contract - namely, your primary residence; (2) where - in what physical location - will you do the work; (3) where the site of your employment is physically located. These 3 pins yield 3 answers. If the majority - any 2 of the answers - are, 'UK', then you will pay taxes for this contract to the UK government. If any 2 answers of the three are 'Germany', you will pay taxes to the German government.

So, if I, say, have my primary residence in the UK, and I work remotely while sitting at my desk in that residence, and the site of my employer - the actual branch office that has hired me on to do this work - is Berlin, then I will pay taxes to the UK. If I were to rent a room in Berlin for the duration of that contract, then I would pay taxes to Germany.

Yes that's broadly it. Just to clarify on pin No. 3, its "where is the economic employer". I.E who ultimately pays for, and benefits from, your labours. Whilst there may be a number of parties in the contractual chain who will benefit from the contract, only one entity is meeting the cost, everyone else in the middle is just passing invoices up and down. Where the economic employer is based is the third pin in the map.


Glad to have been able to help. There may be some times where even these three relatively simple criteria aren't particularly clear or decided, but if you follow this thought process at the beginning of each new contract, it helps keep you honest

[PerfectStorm]

What if your client is UK, you're British but just fancy doing the WFH thing abroad for a bit - what then?

[ladymuck]

What if your client is UK, you're British but just fancy doing the WFH thing abroad for a bit - what then?

Pay in the UK and keep quiet