Hi everyone

I have been working from my home in Switzerland for my UK-based employer since my partner and I moved here last November. (He was officially seconded here for three to five years but I just made a request to my employer to do my job remotely from Switzerland.) I am not paying UK tax anymore so pay Swiss tax instead.

However, my division of the company was sold to another company a few months ago and they are making redundancies in the coming months. I am due to be made redundant at the end of October and will receive a UK redundancy payment. This is not taxable in the UK. However, does living in Switzerland mean I need to declare this amount on my tax return and pay income tax on it? Or is anyone aware of some kind of concession for such situations? I suppose it's my own fault for choosing to live outside the UK so my income is subject to that country's taxes...

All info will be gratefully received.

Thanks,

Di

You are a Swiss resident. You are taxable here on your global income. Swiss tax laws treat redundancy payments as income. It is fully taxable. You are also liable to social security (AHV/AVS, etc.) contributions.

A partial concession may be possible, if you are close to retirement and the redundancy payment is considered as pension compensation.

Thanks Goldtop - as I suspected. I suppose that it is just downright cheeky to expect not to be taxed on it, as I am Swiss resident. Good to know though as I would have been wondering...