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Old 09.06.2015, 14:30
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Returning to UK after 6 months: tax exposure

I'm sorry if this has already been covered, but I couldn't find a previous thread which covered this situation.

I have been living and working here 80% in Switzerland below the 120k threshold for 6 months, returning to the UK now. My question is, despite there being a double taxation agreement, whether I would need to pay additional tax to HMRC (from what I gather I am still resident in UK for tax purposes given the short duration, and Foreign Tax Credit may only cover the low amount of tax I paid in Switzerland and meaning I have to pay the remainder of the higher UK tax rate). I am moving back with about 10,000 that I have saved, so want to see how much of this I should safeguard for the taxman.

I will probably also seek professional advice, but perhaps there are others that have gone through a similar situation and can share their experience.

Thanks
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Old 09.06.2015, 14:35
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Re: Returning to UK after 6 months: tax exposure

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I'm sorry if this has already been covered, but I couldn't find a previous thread which covered this situation.

I have been living and working here 80% in Switzerland below the 120k threshold for 6 months, returning to the UK now. My question is, despite there being a double taxation agreement, whether I would need to pay additional tax to HMRC (from what I gather I am still resident in UK for tax purposes given the short duration, and Foreign Tax Credit may only cover the low amount of tax I paid in Switzerland and meaning I have to pay the remainder of the higher UK tax rate). I am moving back with about 10,000 that I have saved, so want to see how much of this I should safeguard for the taxman.

I will probably also seek professional advice, but perhaps there are others that have gone through a similar situation and can share their experience.

Thanks
You will have to pay the difference between UK tax & tax paid, I suspect 10k won't cover it if your a 40% taxpayer.
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Old 09.06.2015, 14:43
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Re: Returning to UK after 6 months: tax exposure

Thanks. Given that I am a lot less than the 120k threshold (sorry should have stated) and the way that the 6 month job has crossed over 2 tax years, I am pretty sure I am not a high rate tax payer even including additional employment either side of the work. But you've confirmed my suspicion that I will have to pay the remainder of my tax bracket.
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Old 09.06.2015, 15:06
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Re: Returning to UK after 6 months: tax exposure

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Thanks. Given that I am a lot less than the 120k threshold (sorry should have stated) and the way that the 6 month job has crossed over 2 tax years, I am pretty sure I am not a high rate tax payer even including additional employment either side of the work. But you've confirmed my suspicion that I will have to pay the remainder of my tax bracket.
Depending on what you earned in the rest of the year you might not be in the 40% band or just on a small slice of earnings. BTW the Swiss 120k is also 10k a month that throws a few people, earn 10050 & work just 1 month & your over the 120k threshold.

UK rates are here https://www.gov.uk/government/public...ds-for-2015-16
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Old 09.06.2015, 15:28
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Re: Returning to UK after 6 months: tax exposure

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Depending on what you earned in the rest of the year you might not be in the 40% band or just on a small slice of earnings. BTW the Swiss 120k is also 10k a month that throws a few people, earn 10050 & work just 1 month & your over the 120k threshold.

UK rates are here https://www.gov.uk/government/public...ds-for-2015-16
Cheers, I am on 5,500 CHF gross per month so I am nowhere near it (un)fortunately. Barely worked in the rest of the 14/15 tax year, and work I am doing in remainder of 15/16 tax year shouldn't place me in the high bracket either. Thanks for your reply!
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Old 09.06.2015, 17:48
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Re: Returning to UK after 6 months: tax exposure

UK tax free allowance us roughly
10k so probably very little if any UK additional liability especially if 3 months in each tax year
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