the issue is that unpaid tax bills can be pursued by the countries revenue service with the agency being liable now, therefore the agency (if they know what the law is) should insist that you pay tax in country to avoid this liability.
This is debatable based on the 183 day rule, problem for the agency being that if they allow you to work say 182 days in Germany while paying UK tax, then you finish your contract, in theory that is fine. However, should you then get another contract in Germany and exceed the 183 days in country in the same calendar year, then the agency that first placed you is liable for the tax in the first 182 days, if you dont pay it. Given you will likely have paid the tax in the UK by the time this issue surfaces, the agency are left holding the baby/ bill.
You can't blame them for sensible compliance. The ire should be really directed at the law, which in the case here, is something of an ass.
Agencies also now on the hook for tax liability in the PS IR35 tulip storm, liability without responsibility for employment status is a ludicrous state of affairs, where the result will be a blanket ban as the risk simply cannot be considered.
This is debatable based on the 183 day rule, problem for the agency being that if they allow you to work say 182 days in Germany while paying UK tax, then you finish your contract, in theory that is fine. However, should you then get another contract in Germany and exceed the 183 days in country in the same calendar year, then the agency that first placed you is liable for the tax in the first 182 days, if you dont pay it. Given you will likely have paid the tax in the UK by the time this issue surfaces, the agency are left holding the baby/ bill.
You can't blame them for sensible compliance. The ire should be really directed at the law, which in the case here, is something of an ass.
Agencies also now on the hook for tax liability in the PS IR35 tulip storm, liability without responsibility for employment status is a ludicrous state of affairs, where the result will be a blanket ban as the risk simply cannot be considered.
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