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-   -   Tax position for short term UK contract (https://www.englishforum.ch/finance-banking-taxation/10061-tax-position-short-term-uk-contract.html)

John Mc 17.07.2007 22:48

Tax position for short term UK contract
 
Dear Forum,

I am here on a B permit and I pay tax directly every month from my salary. Therefore I do not file a tax return here.

I am going back to the UK for six weeks to work and was wondering how I can have that income taxed here and not in the UK. Is this possible? Does anybody know how this works, for example, with tax codes etc as I won't have a p45 and will probably have to pay tax at the higher 'emergency rate'. It isn't going to be a bundle, but I just want to keep as much of what I will earn as possible...

Any advice or pointers to suitable threads welcome.

Thanks

John

AbFab 18.07.2007 00:01

Re: Tax position for short term UK contract
 
Depends who's paying the money and where they are paying it to and from and whether it's invoiced by you or paid by PAYE.

In principle you could declare it on your Swiss tax form, but as you don't complete one - that's out.

Also you may be able to use your UK tax free allowance, assuming you are still completing a UK tax form.

We'll need more info...

John Mc 18.07.2007 00:12

Re: Tax position for short term UK contract
 
Dear AbFab,

Yes it will be PAYE from a University.

Using my tax-free allowance will probably be the best option. However, I haven't contacted the UK tax authorities or made any returns since leaving University in the early 90s. I am a little afraid of what might crop up. Probably groundless as apart from the odd job while a student I have never been employed in the UK. I suppose, though it was my responsibility to inform them that I wasn't living/earning in the UK?

Any advice? Or should I just start with an emergency tax code and see what happens?

John

AbFab 18.07.2007 08:38

Re: Tax position for short term UK contract
 
If it's PAYE there's nothing you can do and if you don't have a tax code it will be taxed at emergency level. You will need to contact the Inland Revenue at Bootle, where they handle expats' tax, to get a tax return to claim your allowances back. (This in turn could open a can of new worms - like are you 'ordinarily non-resident'?)

I assume you have a NI number and I fear your work in the UK will involve hefty deductions. The University may have some ideas, but don't hold your breath...

18.07.2007 08:56

Re: Tax position for short term UK contract
 
Quote:

Originally Posted by John Mc (Post 84182)
Dear Forum,

I am here on a B permit and I pay tax directly every month from my salary. Therefore I do not file a tax return here.

I guess this is because you haven't received a tax return. Depending on the circumstances it might be worth completing a tax return anyway - for example in my first full year in Switzerland I got 12K back.


Quote:

Originally Posted by John Mc (Post 84182)
I am going back to the UK for six weeks to work and was wondering how I can have that income taxed here and not in the UK. Is this possible? Does anybody know how this works, for example, with tax codes etc as I won't have a p45 and will probably have to pay tax at the higher 'emergency rate'. It isn't going to be a bundle, but I just want to keep as much of what I will earn as possible...

Are you still registered for tax in the UK? If you deregistered when you left then you pay no tax - 6 weeks isn't enough to require registration.

As the Fab says, you should just add the amount you earn onto your next (1st) Swiss tax return.

If you did end up paying tax in the UK you can reclaim it. Check the IRS website for details.

DPH 18.07.2007 16:28

Re: Tax position for short term UK contract
 
If you are in the UK for less than approx 130 days a year, and resident abroad then you don't have any liability for tax there. If you have already paid tax, you can claim it back on a form available from the office in Bootle.

Therefore, the fact that you haven't been resident doesn't create a liability for you. The worst case scenario here (I think) is that you may be deducted tax through PAYE, but once you get the form through you should be able to reclaim this.


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