Working for a Foreign Company ! How to pay tax and National Insurance !?

I recently started work for a canadian company. They have no presence in the UK and I am their sole employee. I want to understand my tax and National Insurance situation.

My company has asked me to resolve my tax and NI, while they will pay me the gross salary.
How do I go about doing that? Is it better for me to register as self employed?
Can I pay my own taxes and NI if I work for a Non UK company?

All of my work is in Europe, Middle-East and African market. Does this affect my tax situation. For all intent and purposes, I seem to be only living in UK and working somewhere else.

Any advice would be most useful.
thanks in advance.

Hi

This is a very complex situation.

If you were working in the UK for a canadian company then they should register with the Revenue as an employer and pay the tax and national insurance due. This is particularly important because as well as the tax and national insurance that is dedctable from your salary, the employer also has to pay an extra amount of national insurance.

If most of your work was outside the UK but you are ordinarly resident in the UK and domiciled here, then you are taxable on your worldwide income so where you work is irrelevant. However there are 'ways and means' around this if necessary.

I suggest you speak to an accountant.

I act for a number of companies in a similar situation so would be happy to chat if you want t discuss your options.

Kind regards

David Nicoll
"the accountant with attitude"

If you are self employed you still need to pay tax and insurance.
You write to the Inland Revenue and ask for an assessment form, on that form you will give your employers name and address and the Inland Revenue will then contact them.

So far as NHI is concerned, if the company are not going to pay the employers portion then you would need to pay the self employed contribution

The Inland Revenue, now hmrc.com, would be most unlikely to contact any firm outside their jurisdiction. The most important point you make is that you are resident in this country but another one is where your duties are performed. You should contact the hmrc office which deals with the area in which you are resident as in these circumstances it will be this office which will be dealing with your affairs. Strictly speaking, if you are an employee you cannot become self employed just by saying so, so that the situation is complicated. Ask to make an appointment with an inspector of taxes and brief him/her before the interview of your problem (but don't take advice over the telephone as it may not be reliable) although that title of HMIT may now have changed to suit the merging of the Inland Revenue with Customs & Excise. Firstly see if the website can help.