Work for an abroad EU company as 2nd job while on Tier2(gen)

[HBBB]

Hi All,

I'm currently on a Tier2(General) which my job is on shortage list. There is an opportunity for we to work for a German-based company in the UK as my second job. They way this second job works (if I accept to do it) is that they ask me to visit some places inside UK and prepare some documents or reports for them in my free time and pay my account in UK. The job is in the same SOC code on my COS. The actual job is taking place in the UK but the German company got the job inside UK and instead of sending somebody from Germany, They are going to pay me to do the job. Somehow we can say the German company is dealing with HMRC to sort our their taxes and in my eyes, It's just like somebody is sending money across because I have dome some job for them outside UK. I have a few question in this regards:

1-Is it really a second job from UKBA and HMRC point of view since I'm going to work for a German company and they pay me from outside UK? I know there is a 20hr/week limit for second job while on Tier 2.
2-How can I explain this situation to HMRC once money comes to my bank account? I mean if they deduct taxes in Germany, do I need to pay HMRC as well? to be honest, I don't know how tax calculation works in this situation.
3- is this legal under a Tier 2 (General)?

I really appreciate your comments. I searched online and read many documents but I couldn't come to a completion.

Kind Regards,

[iworker]

i think what you are trying to do is legal.
However there is a bit of problem. With tier 2, u can work 20 hours, but they have to pay u as paye. so the taxes are cut and paid to hmrc before paid to you. they cant pay u full money and ask u to pay your taxes as that would be self employed situation.
however, immigration point of view, u can do whatever u want outside the uk, and it is not their problem. so as long as you continue to do your job, u should be fine.

[HBBB]

Thank you very much to make it clear for me.

May ask a few more questions:

1-I believe for the case that they pay the tax, I have to have rights to work in Germany. Am I right?

2-Does HMRC check if money comes to my account every month from an abroad account? E.g. €500/month on average?

3-For the case that they pay me without tax deduction, I agree with you about self employment. Can I ask them send money to my wife's account who has Tier2-depandant visa and I think she's allowed for self-employment while actually I do the job? her CV is good enough to proof she can do the job as well. At the end, I am paying taxes and doing my main job. Would you share your thoughts about this and the risks involved?

Kind Regards,

[CR001]

You can't work for them and have the money/salary paid to your wife. She gets the money if she works for them. Do not try and circumvent the rules, it will come back to haunt you.

[HBBB]

Ok, Thank you very much.

[Wanderer]

You would be taxed in Germany and in UK as well, under these circumstances, as you are tax resident in UK and cannot escape that without leaving the UK permanently.

The mantra is Tax is Due where the Work is Done.......

The good/bad news is you would most likely escape any tax in UK under the Double Taxation Agreement between the two countries, the reason being German tax is much higher, around 56%....

But you must formally declare it, don't ignore it and assume, HMRC are total barstewards nowadays, but I can promise you the German Finanzamt is much worse and they do exchange information.

I'd not risk it for €500/mo, that will shrink to €230 ish after German tax, plus the charges for receiving Euros into a UK account you'll be lucky to end up with £150 a month.....