I am starting a new job in Basel in November. My wife and family are remaining in the UK for the first 6 months and i will be in Basel Tues-Thurs and in UK at home the remainder of week. At the end of that we will all be in Basel.

Its a Swiss company and i will be paid in Switzerland but am thinking that the inland revenue here will still consider me a UK resident??? Will i get taxed here and if i do how much roughly will it work out at with the double taxation agreement.

its difficult to get answers from the Uk end the advisors i have spoken too say i will be taxed in UK but cant comment on the swiss position???


Thanks!

When we did the same (UK to France though) we received what the inland revenue called split year treatment. My husband left 1st July and I followed two months later after packing up the house. He was treated as resident in the UK until he left and paid tax via PAYE in April, May and June. Tax the started in France from the first July. We filled in a tax return at the end of the year and got quite a rebate, tax in France was also very low that year.

I know that CH is not part of the EU but imagine that the bilateral agreements would cover this.

try ringing the centre for non-residents in Liverpool - 0151 472 6009 - I have always found them very helpful and knowledgeable.

Your tax will be deducted at source in Switzerland. Tell your UK advisors that.

In my opinion, as a non-tax-expert, you are obliged to request a tax return from the UK authorities. You fill that in, detailing your Swiss earnings and deductions made. They then work out how much UK tax you would be liable for on those earnings. If it is more than you've paid in CH, which is most likely, they'll then send you a bill for the difference. I.e. if you've paid £20K tax in CH, and you would have paid £35K in the UK, they'll bill you for £15K.

You might qualify for non-residency in the UK from the off (the split year treatment), given the number of nights you stay there is likely to be less than 183. But you might not, as you've not yet moved home, as it were, since your family are left behind.

It's more complicated if your wife is earning, as the Swiss tax on economic unit, not individual basis. You may find that your taxed in Basel as a single until your family join you.

When your children join you, if you have any, inform your HR. You will qualify for family allowance,which is a lot more than the UK.

Finally, try to get your new employer to pay for your first few years tax return. That way you can get someone skilled in international taxation. Many larger employers do this as a matter of course.

You are entitled to the family allowance whether or not the children live with you.

Thanks for the advice and info. The company will sort my tax returns for 2 years so hopefully it will eb less complicated by the time i come to have to do my own!

At first glance it looks like you'll continue to be tax resident in the UK until November, as you are living there more than half the time (fri-mon: 4 days a week).

You'll probably have to pay Swiss income taxes first at source, then also UK income tax when you do your self assessment return (by January 2012) though you'd get credit for the Swiss income tax you already paid.

From November onwards you should be nonresident for UK tax purposes and should only be taxed in Switzerland.