I am originally from the UK and moved to Warsaw in December 2011 to take up a full time job here and my tax is paid by my current company (comes out of my salary-PAYE).I have been offered a 12 month contract by a UK based company. The work is completely different from my current role and my manager has given me the go ahead although told me to keep it' under my hat' as HR will just cause problems. I have Pesel, NIP and I am registered in Poland already.
I need help with the following.
1. The UK company are happy to pay me in Poland or the UK - they have even said they are ok to PAYE me in the UK to ensure full tax is paid. Can anyone advise me or recommend an accountant to help with either setting up a company or becoming a sole trader?
2. If i take on the contract is there any way in which one of the solutions i use (eg ltd company) will involve the tax authorities contacting my current employer to inform them I have a part time contract?
Any help would be appreciated!
And what decision did you make? There are a number of factors to consider, the most correct structure depends on a number of things like ownership and liability, the legal entity and of course tax implications. Here is simple but interesting tool for calculating tax benefits when choosing between self employment or limited company:
Keep in mind that you will have to add the income from both contracts while filling the income tax return. Having a creative accountant is a key to success. The best would be experienced in both - Polish and English bookkeeping. I'm sure there are plenty of professionals in UK, but if you are looking for someone in Poland - Warsaw who speak English:
ADNAW Accounting Services - adnaw.com.pl/index.php/en.html
POLFINANS - polfinans.pl/about-us,1.html
Account Ltd - account-pl.eu/en
It's crucial to know rules and regulations of your current employer. If there's no prohibition to work for another company, then you can go for it. I don't remember any case when a state institution notifies an employer about other jobs of his employee. And it's up to you if you have time and energy to reconcile your duties for both contracts.
Actually, the EU Working Time Directive comes into play here. If he goes over 48 hours a week, then he's breaking Polish law by doing so.
The chances of anyone finding out are minimal, but it could be easily used against him in a future disciplinary process.