Tax equalisation / net salary

[JumpersforGoalposts]

Re: Tax equalisation / net salary

Under the scheme the my salary is increased to offset the loss of the company contribution.

That will cover you for the Company scheme, but not if you make additional contributions to a personal pension.

[Des Parrot]

Re: Tax equalisation / net salary

Des why don't you just buy out Vinnie and the rest of us paupers will fall at your feet and cover the difference in what you owe HMRC.

Thanks for the vote of confidence Harry, its a great thought and I’d love to do it but I’m a few decimal places & noughts short at the moment.

[Optimistic Nick]

Re: Tax equalisation / net salary

To explain further, from January I’m no longer classed as a UK resident but I’m still payrolled in UK. I have to pay tax in Poland but need to continue my pension & NI contributions in Uk.

Is this something that your firm proactively offered to you? Or that you asked for?

Are they moving functions to Poland and offering this as an incentive for people to move to Poland? Or are they saying you can live anywhere you want and your payroll will make sure that you receive the net pay you'd get if you stayed in the UK? If the former- makes sense and yes I've seen that quite a bit. If the latter- that's bonkers. It's manageable, but commercially I don't get why they would do it.

[Des Parrot]

Re: Tax equalisation / net salary

Is this something that your firm proactively offered to you? Or that you asked for?

Are they moving functions to Poland and offering this as an incentive for people to move to Poland? Or are they saying you can live anywhere you want and your payroll will make sure that you receive the net pay you'd get if you stayed in the UK? If the former- makes sense and yes I've seen that quite a bit. If the latter- that's bonkers. It's manageable, but commercially I don't get why they would do it.

From January 1st I become a non-uk tax payer and will receive a P85. I will have all of the legal documentation to live & work in Poland. For the last year I’ve been on temporary documentation.

I will still be payrolled in UK and seconded to the Polish company. This allows me to protect my pension and national insurance.

The company already do this for the European MD and they’re following the same model. I can’t see any negatives, in fact only positives, especially as the zloty has weakened by 20% against gbp. Hence the reason I’ve posted here in case I’m overlooking anything.