View Single Post
Old 25.02.2007, 23:06
Posts: n/a
Re: tax / social security / pension obligations

thanks richard, and apologies for being a little non-specific - i'm only just getting to the point where i know what i don't know(!)
my questions mostly already covered by muze7, but i'd be grateful if you could clarify a couple of things specific to my current situation:

Income tax is usually at source for newcomers to Switzerland. You should be very careful with respect to hopeful offsets. These usually result in a higher final tax amount here or sub optimal tax planning.
i'm expecting to be working in switzerland (for a swiss company, on a contract basis) for 6-12 months, and my understanding is that that i will be expected to pay full income tax in both switzerland and the UK for the duration of this time, but that i can offset the swiss tax against my UK tax. for example, if my swiss income tax bill was 10000 and my UK income tax bill was 15000, i would only owe UK HMRC the difference of 5000.

are you saying that attempting to claim this offset is unlikely to be financially sensible? (or were you talking about offset from a swiss perspective?) i do have a UK mortgage, but i'm not sure that's relevent here(?)

regarding non-tax obligations (ie pension/NI): can you tell me if i am also obliged to pay NI in the UK for the length of my stay in switzerland, and if so, whether or not i can offset it against NI-type(?) payments i am obliged to pay in switzerland (as per the income tax example). and if I am paying swiss pension contributions, does this mean i can subsequently claim a pension from the swiss government in later life?

lastly, if i'm being taxed at source in switzerland, does this mean that i am not obliged to submit a tax return in switzerland, or to declare UK assets in any way?

Reply With Quote