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Old 22.03.2010, 13:41
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Limited company and payroll

Hi there,
I am currently getting interviews for IT contract work in Zurich.
The agencies who are contacting me all claim, that I can't use my Limited company in the UK to invoice them and I will have to go through them as a payroll company. However, I have seen posts here from people running their own business etc.
Now I don't mind going through payroll if they are not ripping me off. I have done so in Holland where the agency claimed the same thing and while it is not technically true, it avoids a whole slew of problems that I'd rather not deal with that if I was fully informed I would have gone the payroll route anyway.
I just would like to be fully informed and if someone has a complete grasp as to all the issues involved I would be grateful. No need to read the examples below they are to give an idea of what type of situations I am concerned about.
Finally, are there any financial benefits offered to expat in Zurich. I haven't noticed any but in Holland, we are offered the 30% ruling which means we are taxed for at 70% of our income which is an important benefit considering their taxes.

Thanks for your insight and help


I will give you an example. In holland, by being on the dutch payroll when worked ended I was entitled to unemployment which was, it is no longer, pretty decent amount and uncomplicated in that it only required the former 6 months work in the past 12 months whereas in the UK and it appears Switzerland too you had to have paid into the systems 2 years prior to avail yourself of unemployment.
Further, if I had gone through the route of invoicing through the UK or starting up a division in the NL, I would have had to had to get a special account to hold the invoiced monies until the tax office in holland had approved my paperwork which evidently takes several months and the documentation and customer service is not so user friendly or forthcoming.
 




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