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Old 09.07.2007, 18:26
Richard Richard is offline
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Re: Double Tax Treaty with the UK

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Sorry to bang on about this, but is there any way of putting a very approximate figure/percentage on the extra I might pay?
Sorry to bang on about this (!), but would I be right in assuming that the agency that you want to have payroll you actually found you the contract? If so then you have few alternatives, if no then quickly PM me.

You effectively have two options here.
  1. You decide that you want to do a sabbatical and take 6 months of work. You then open everything as if you are intending to stay long term in CH - do the work and leave. Your pension contributions will be frozen for 5 years but your tax load will be low.
  2. You go through the route of making a split year declaration at HM tax office and see what figure they finally come out with. Note it is not really possible to say what this figure will be in advance as it has very much to do with what you can deduct and how much you are earning.
If you are earning somewhere around the SFR 900 per day then your net monthly income for Switzerland will be around:

Amount: 18,000
Agency: 3,000
AHV: 1,500
ALV: 300
BU/NBU: 300
PK: 1,150 minimum

So I guess you can reckon with 11.5 -12K ish

Tax liability will be around(very around) 2500 per month so your net net will be around SFr. 9K

As far as the UK are concerned you can then deduct all the additional costs of living over here as long as you maintain accomodation in the UK. So your income of 15K per month will fall to 10K per month which is 40% rate ie 4K and from that you can deduct 3K for Switzerlandish so UK will be in the region of 1K per month.

It is not that simple but it will work out about there...

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