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Old 01.06.2015, 15:44
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Working for a UK company but living in CH - tax?

Hi,

I've tried searching but can't quite find the right thread.

I've been offered some temporary, part time work from my previous boss in the UK but am unsure whether to accept due to taxes. If I accept, I would be working in Swiss but doing work for a UK company and preferably paid into my UK account (as funds are low!).

What would be the tax implication? Would the UK company deduct local UK taxes, or would I need to complete a tax form in Swiss and pay it back in Swiss?

Also, would it be better to register as a free-lancer in Swiss in the event that more work arises later in the year or at another time?

As it would only be temporary and part time, I'm guessing a max. of 2/3 months, the total income would likely be a maximum of 5000GBP.

I'm currently already working part-time in Swiss with a B Permit. This would be on top of my current part-time role.

Hope someone can help explain!

Thank you!
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Old 01.06.2015, 17:11
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Re: Working for a UK company but living in CH - tax?

Hi,

First of all - I'm not a lawyer or a tax expert but...

My wife did this for 3 years when we first came to Switzerland. She kept her job in the UK and continued to be paid and taxed there whilst working from home. It was a nice insurance plan for us in case things didn't work out in CH.

When we were eventually asked after 3 or 4 years to file Swiss tax returns I used an accountant who confirmed that the job is in the UK even if she was physically located in Switzerland whilst performing the duties. As it had been taxed there it was not eligible to be taxed in Switzerland BUT I did have to declare it. The Swiss authorities included this income in the calculations to determine our tax rate but were not entitled to tax that portion of income.

I was also able to deduct some of the travel expenses related to trips back to the UK from our taxable income.

I just recommend that you keep all pay slips showing the UK PAYE deductions as you may one day need to show them to the tax authorities here.

If your total income in UK is under 10k GBP for the year you don't have to pay tax there either, so maybe you don't need to pay PAYE - but I'm not qualified to get into that can of worms!
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Old 01.06.2015, 17:14
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Re: Working for a UK company but living in CH - tax?

You live in CH so the tax should be paid here and not deducted by the UK company as far as I know. I think you should bill them for the full (gross) amount with no deductions for anything.

If it was me I would do the work and worry about the tax afterwards, the taxman here is reasonably understanding.
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Old 01.06.2015, 17:54
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Re: Working for a UK company but living in CH - tax?

This was asked very recently - at least twice - on here.

In Switzerland you are taxed on your global income - either as an individual or as a married couple.

If your global income is 200k - they look up 200k on the chart and say you need to pay 50k. They then look at the amount of tax that has been paid and deduct that - leaving an amount due here. In theory the UK tax deduction should lower your tax liability in Switzerland.

You should research the best way to do this though, for example I contracted in the UK while leaving my "centre of life" in Switzerland and therefore was able to claim back many many costs against tax - in the same way that an MP is able to.
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Old 01.06.2015, 18:25
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Re: Working for a UK company but living in CH - tax?

I'm in this situation now, with the added complexity of having a second Swiss job. It's great fun!
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Old 01.06.2015, 18:40
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Re: Working for a UK company but living in CH - tax?

I've done this here for a few companies in the U.K.

I paid tax here and not in the U.K.
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Old 01.06.2015, 20:41
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Re: Working for a UK company but living in CH - tax?

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I've done this here for a few companies in the U.K.

I paid tax here and not in the U.K.
AVS as well I assume which can be as high as 20% if you earn around 3kchf, due to a minimum payment.
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Old 01.06.2015, 20:52
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Re: Working for a UK company but living in CH - tax?

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AVS as well I assume which can be as high as 20% if you earn around 3kchf, due to a minimum payment.
Yeah, I paid about double what an employee paid here would pay.
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Old 02.06.2015, 13:16
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Re: Working for a UK company but living in CH - tax?

Hi,

In my case I did that also for 3 years. What I understand is that you pay the taxes on the country you live in, so I filled a P85 form when leaving the UK, but since I was still working for the same company in UK, I specified that couldn't provide the P45 form (leaving work).

Once in Switzerland, I was double taxated till the guys in the UK confirmed the P85, but afterwards got a refund for that.
Then in Switzerland, when filing my taxes, I declared all the money already paid, so they will calculate how much you have to pay or they owe you.
In my case I was like an "independant worker" here, so I didn't have to pay tax a la source.

Hope it helps

Regards,
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Old 02.06.2015, 13:23
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Re: Working for a UK company but living in CH - tax?

I will be in a similar situation in two months from now and am agreeing with my employer a completely different path: I am setting up my own company in CH and send them a bill instead.
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