Tax equalisation / net salary

[Des Parrot]

Anyone got any experience of this? My company is offering a net salary, I.e they pay all tax and other items such as NI & social security. This allows me to receive the same salary regardless of tax location.

[Optimistic Nick]

Re: Tax equalisation / net salary

Anyone got any experience of this? My company is offering a net salary, I.e they pay all tax and other items such as NI & social security. This allows me to receive the same salary regardless of tax location.

Odd. Why are they doing this? There are tax complications beyond your payroll stuff they would need to think about (depending on your role etc).

[cityhammer]

Re: Tax equalisation / net salary

I’m no tax lawyer but I can see problems with this if you receive payments and they don’t pay the tax and ni liabilities that you have! There’s no benefit to you, depending on your personal tax position, but there could be major liabilities. I’ll post again when I’m sober!

[life on mars]

Re: Tax equalisation / net salary

HMRC read these posts , please be careful .

[The Bloop]

Re: Tax equalisation / net salary

I'm guessing that this relates to you working overseas (Poland if I recall?).
If income tax rates in Poland are lower than the UK then your employer will benefit from the difference. If rates are higher

[JumpersforGoalposts]

Re: Tax equalisation / net salary

They are saying you will be paid your salary net of the notional deductions as if you were paid in the UK.
Your employer then pays the relevant local taxes.

The main thing you should take care over would be the impact on pension contributions, i.e. you would not benefit from tax relief on contributions to a personal pension.

[Des Parrot]

Re: Tax equalisation / net salary

HMRC read these posts , please be careful .

HMRC are involved. It’s all fully legal & managed by EY.

[Des Parrot]

Re: Tax equalisation / net salary

They are saying you will be paid your salary net of the notional deductions as if you were paid in the UK.
Your employer then pays the relevant local taxes.

The main thing you should take care over would be the impact on pension contributions, i.e. you would not benefit from tax relief on contributions to a personal pension.

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

[Des Parrot]

Re: Tax equalisation / net salary

I'm guessing that this relates to you working overseas (Poland if I recall?).
If income tax rates in Poland are lower than the UK then your employer will benefit from the difference. If rates are higher

Exactly this. Tax rate in Poland is 32% in UK 40%

[Des Parrot]

Re: Tax equalisation / net salary

I’m no tax lawyer but I can see problems with this if you receive payments and they don’t pay the tax and ni liabilities that you have! There’s no benefit to you, depending on your personal tax position, but there could be major liabilities. I’ll post again when I’m sober!

The benefit to me is that my pension & NI remain in tack, paid in the UK and the company pay tax in Poland.

[Des Parrot]

Re: Tax equalisation / net salary

Anyone got any experience of this? My company is offering a net salary, I.e they pay all tax and other items such as NI & social security. This allows me to receive the same salary regardless of tax location.

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.

[Harry Paget Flashman]

Re: Tax equalisation / net salary

Anyone got any experience of this? My company is offering a net salary, I.e they pay all tax and other items such as NI & social security. This allows me to receive the same salary regardless of tax location.

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.

[MOZZER2]

Re: Tax equalisation / net salary

can you set up as a LTD company des and get an accountant to sort it out if your on a contact ?

[OurManFlint II]

Re: Tax equalisation / net salary

HMRC are involved. It’s all fully legal & managed by EY.

Thank god for that, its not like EY would ever **** anything up

[Eric Cartman]

Re: Tax equalisation / net salary

Finally we have a use for Feedback and he is nowhere to be seen.

Let me summon him, 'Thatcher selling council houses reduced the overall housing stock'.