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Old 23.11.2016, 15:03
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Temporary freelance work for single UK employer - tax queries

Hello,

I've read through many threads in this section, and feel like I've learned a lot, but still feel very confused about certain details of getting set up workwise. I wonder if anyone could help clarify for me.

Bit of background:

I've recently moved to Zurich with my boyfriend - he's got a 5 year B permit, as he has a permanent work contract here. I'm currently waiting for confirmation of my dependent's permit (as he can support us both financially) but would like to find some work of my own.

In the short term, I've been offered a potential bit of freelance work by a UK company, doing what I was employed to do back home (web design related). This will be great until I find my feet, but I don't plan for it to be a long term arrangement.

I'm most likely to be paid into a UK bank account, but I want to know the most straightforward way to make sure I pay any taxes etc due here in Switzerland rather than the UK, as I'm now resident here - I'm struggling to grasp the set-up I'd need!

I've read that to be officially recognised as 'self employed', you have to show evidence of more than one client, so in this particular situation I might have to be counted as 'employed' by this one client? I have no idea how that would work from a tax perspective, as they're UK based.

Or could it be as simple as just waiting for my tax return to arrive (or calling up to ensure I get one), and treating it as self employment - making sure I record and log any expenses/income so that the appropriate owed tax is calculated?

I'm getting in a pickle trying to work out what's acceptable - I want to make sure I pay what I owe, but everything seems incredibly complex right now, especially for something short term! Any advice would be welcomed.
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Old 23.11.2016, 15:16
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Re: Temporary freelance work for single UK employer - tax queries

Ah sorry I just noticed this thread which tackles a similar topic.

The difference being that in that case the single client is based in Switzerland, so I guess understand the tax obligations.

I'm confused about how this would work for a UK client - if it's actually more trouble than its worth to do it by the book
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Old 23.11.2016, 15:54
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Re: Temporary freelance work for single UK employer - tax queries

Until your permit status is confirmed you can't work so quite simple.
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Old 23.11.2016, 16:09
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Re: Temporary freelance work for single UK employer - tax queries

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Until your permit status is confirmed you can't work so quite simple.
Hi Medea, is this taking into account eligibility to work in Switzerland for up to 90 days as someone from an EU/EFTA country? I thought short term employment was OK regardless?
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Old 23.11.2016, 16:27
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Re: Temporary freelance work for single UK employer - tax queries

No, sorry. There is a notification procedure for companies outside Switzerland who send workers here for short periods and for self-employed service providers.

https://www.sem.admin.ch/sem/en/home...verfahren.html

However, you don't qualify as you've already applied for your permit and have not been sent here by a EU/EFTA company nor are you providing your service from another EU/EFTA state.

"The following categories of individuals are authorised to work in Switzerland for up to three months or 90 days per calendar year by virtue of the notification procedure:

◾EU-27/EFTA nationals who have been employed to work in Switzerland by a company based in Switzerland for a period of up to three months.

◾Posted workers from a company based in an EU-27/EFTA member state, regardless of this worker’s citizenship. Croatian nationals or third-state nationals, however, must have been admitted permanently in a labour market of an EU-27/EFTA member state before being sent to Switzerland. Generally speaking, this criterion is deemed to have been met if the individual has held a standard or permanent residence permit in that country for at least twelve months.

◾Self-employed service providers (EU-27/EFTA nationals) based in an EU-27/EFTA member state."
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Old 23.11.2016, 16:46
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Re: Temporary freelance work for single UK employer - tax queries

Ah, OK thank you very much for your clarification! OK, sounds like I need to hold off for the time being at least.
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Old 23.11.2016, 16:59
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Re: Temporary freelance work for single UK employer - tax queries

How temporary is temporary?
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Old 23.11.2016, 19:43
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Re: Temporary freelance work for single UK employer - tax queries

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How temporary is temporary?
The particular piece of work that I've been told about is for around a month/1.5 months, but not full time - the work itself should be up to about 20 days I believe.
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Old 23.11.2016, 20:51
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Re: Temporary freelance work for single UK employer - tax queries

Quite likely, it's probably not even worth declaring, difficult to say without knowing the figures involved, but under Chf 5k.....
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Old 23.11.2016, 20:58
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Re: Temporary freelance work for single UK employer - tax queries

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The particular piece of work that I've been told about is for around a month/1.5 months, but not full time - the work itself should be up to about 20 days I believe.
Are you a UK citizen?
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Old 23.11.2016, 21:57
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Re: Temporary freelance work for single UK employer - tax queries

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Are you a UK citizen?
Why would citizenship make any difference?
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Old 23.11.2016, 23:05
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Re: Temporary freelance work for single UK employer - tax queries

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Are you a UK citizen?
Profile says "British"
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Old 24.11.2016, 12:21
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Re: Temporary freelance work for single UK employer - tax queries

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Are you a UK citizen?
I am a UK citizen, yep.
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Old 24.11.2016, 15:09
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Re: Temporary freelance work for single UK employer - tax queries

If it were me and I already had things set-up to pay tax in the UK then I'd do it and keep it all on the UK side, for initial taxes at least, then declare it if necessary to the Swiss if they ask. Might not be properly legal but not too bad either. Obtaining permission to live and work in Switzerland is a formality as a UK citizen, or at least it was. As for the self-employment rules. If you have *only* a 20 day contract even if it's only for one company I'm quite sure this is acceptable to be self-employment. It's quite similar to the UK - various 'rules' combine to give the overall verdict. You could easily set things up in CH for this but I'm not sure it's worth it if it will only be one piece of work.
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Old 24.11.2016, 16:06
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Re: Temporary freelance work for single UK employer - tax queries

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If it were me and I already had things set-up to pay tax in the UK then I'd do it and keep it all on the UK side, for initial taxes at least, then declare it if necessary to the Swiss if they ask. Might not be properly legal but not too bad either. Obtaining permission to live and work in Switzerland is a formality as a UK citizen, or at least it was. As for the self-employment rules. If you have *only* a 20 day contract even if it's only for one company I'm quite sure this is acceptable to be self-employment. It's quite similar to the UK - various 'rules' combine to give the overall verdict. You could easily set things up in CH for this but I'm not sure it's worth it if it will only be one piece of work.
Thats actually against the law, so hardly the best advise.

Thew OP needs to look at the statutory definition of UK residence to see if she qualifies as a UK tax resident, if she does he has to submit a tax return in both the UK & again in Switzerland if she is resident in Switzerland.
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Old 24.11.2016, 16:56
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Re: Temporary freelance work for single UK employer - tax queries

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Thats actually against the law, so hardly the best advise.

Thew OP needs to look at the statutory definition of UK residence to see if she qualifies as a UK tax resident, if she does he has to submit a tax return in both the UK & again in Switzerland if she is resident in Switzerland.
It wasn't advise, nor was it advice. You only need file a UK tax return if tax is due (and a few other situations). It doesn't matter if you're resident or not.

Tax will be the biggest problem because services are generally taxed where they are provided, which in this case would be Switzerland. That brings in the question of work permit, which might not be necessary until 3 months in the country, as a UK (EU25) citizen. The proper way to do it would be all on the Swiss side, of course. The OP could also try to get paid gross directly from the UK and declare it in the Swiss system.
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Old 24.11.2016, 17:08
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Re: Temporary freelance work for single UK employer - tax queries

What amount are we talking about ?
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Old 24.11.2016, 17:25
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Re: Temporary freelance work for single UK employer - tax queries

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It wasn't advise, nor was it advice. You only need file a UK tax return if tax is due (and a few other situations). It doesn't matter if you're resident or not.

Tax will be the biggest problem because services are generally taxed where they are provided, which in this case would be Switzerland. That brings in the question of work permit, which might not be necessary until 3 months in the country, as a UK (EU25) citizen. The proper way to do it would be all on the Swiss side, of course. The OP could also try to get paid gross directly from the UK and declare it in the Swiss system.
If your resident, & UK residence can mean spending less than 3 weeks in the UK depending on circumstances. The OP does not have a full time contract of employment abroad so that exemption does not apply. Having income arising in the UK would normally create a UK tax liability however there is an 11k allowance that non residents can currently claim.
Being joint resident means liability to world wide earnings in 2 countries, credit for tax paid in 1 country will usually be credited. Earn 10k in the UK & there is no UK liability however there would be a Swiss liability on that tax free UK income.
I still have no idea why you asked if the OP was a UK citizen, it's irrelevant as UK does not tax people for just being citizens.
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