How do I work from home in Germany for a UK company?
Working abroad, remotely?
I work for a UK agency, but I live in Germany and work from home. How does that work?
Well, there’s something called an S690 which I found out about from HMRC (the tax authority in the UK).
Although I earn money from the UK as an employee and it’s paid into a UK bank account, I pay tax in the UK and Germany. This is because I physically live and work in Germany (even though it’s from home with my work laptop).
So when I got my job, my employer had to apply for an S690 for me. It would say what percentage of the year I was planning to do my job in the UK and in Germany.
For example, let’s say I spend half the year working in the UK and half the year working in Germany. So 50% of my salary would be taxed in the UK, and the other 50% in Germany. However, I’d still keep my tax free allowance in the UK, as I’ve been paying taxes there for over 5 years.
Yes, there are different tax rates in each country. I would pay my taxes in euros in Germany by October, and my taxes for the UK the following January.
Hopefully this clears up any confusion about working internationally and how I do it :)