I am moving to the UK for the long term and starting a new job from October, 2021. I would be on vacation for the most of October and my German employer would be paying out at the end of the month.
I understand that I have to pay taxes from UK income in the UK. And I have to pay direct taxes from Germany income in Germany and indirect taxes (progression proviso) for UK income in Germany.
Since I would be employed in Germany and the UK for few days simultaneously:
- Would UK HMRC tax my October salary from German employer?
- Would Germany Finanzamt tax my October salary from UK employer directly?
Update: I got the following reply from Germany Tax consultant:
if you are resident in the UK from October, you will have to file a tax return in Germany in 2022, the UK salary will be taxed indirectly (progression proviso) if you pay tax on it in the UK. this should not be a problem for the German tax office
As far as my understanding goes, I will become ordinary resident and the UK tax resident as I take long term employment in the UK. If I join the UK employer in October, my German employment salary may be subject to terminal leave pay taxes in the UK.(Section 10.7 page 59 at Residence, domicile and the remittance basis HMRC)
I am still looking for someone more experiencedLast Update: I decided to share more insightnegotiate my last day in such a way that I do not have 2 formal employment contract at the same time. My friend pointed me towards an important agreement clause which prohibit formal employment at 2 places at same time.