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Old 31.01.2011, 17:24
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I work for a UK company but moving to Switzerland. Which country do I pay income tax?

Hi,

We are moving to Switzerland in April for my husbands job. He will obtain Swiss residency B status and we have been led to believe that both myself and our children will automatically obtain the same status. I will be retaining my job in the UK but working from home in Switzerland (Zurich canton) and commuting to London once a month for a few days at a time. We are having a nightmare trying to find out if I will be subject to UK income tax or, preferably, Swiss income tax. Please can anyone help?

PS: We own a home in the UK which we will be renting out so I believe we still need to file a UK tax return?
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Old 31.01.2011, 17:33
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I'm in similar situation.

You will have to file the tax return, if profit is above your allowance 8k ish then you have to pay tax.

Sounds like your going to be Swiss domiciled, so taxed in Switzerland.

Call HMRC, they actually know more than the people on this forum, and are surprisingly helpful.

Need to register as a landlord with them, file a P85 I think (leaving UK form, tax refund due also).

Good luck, you will love it here!!!!
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Old 31.01.2011, 17:42
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Re: I work for a UK company but moving to Switzerland. Which country do I pay income

Thanks Country Mouse. My main concern is actually getting to the bottom of the income tax situation for my job. My employer thinks I may be required to pay UK income tax since the company I work for is based here and although the work will be carried out remotely in Switzerland it is all for UK purposes (if that makes sense).

My husband and I need to file a joint Swiss tax return as his earnings fall into the tax bracket that requires this and I am worried that if we are both paying taxes in two different countries then it is going to get extremely messy! Not to mention the fact that I will be paying considerably more if my income ends up being subject to UK tax. Good idea on the HMRC though, have no idea why I haven't already done that!
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Old 31.01.2011, 18:26
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Re: I work for a UK company but moving to Switzerland. Which country do I pay income

I'm pretty confident that working for a UK company for UK purposes does not mean that you pay tax in the UK, but I've no idea how the company accounts for it, as your employer. The basic rule is that you pay tax where you are resident. It is, however, possible to be resident in two countries - in which case, double taxation agreements, ensure you pay the higher amount. But you only pay as much as you would if you were living in the higher taxed country.

Residency is complicated, but from the information you've given, it seems unlikely to me, that you'd be resident in the UK. The UK tax system is self-assessment. You'll only get advice from HMRC - not a definitive statement! (But they're still a good source of information).

I work for a UK company, through my own Swiss company. I do not pay a penny to HMRC. But, importantly, I'm not an employee of the UK company, so the situation is different.
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Old 31.01.2011, 18:32
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Re: I work for a UK company but moving to Switzerland. Which country do I pay income

So far I believe all good answers. Keep in mind that you need to discuss with the IR in UK about when you are and are not considdered resitent as that will effect the whole issue. I believe you need to inform them when you become non-resident.
Your employer is definitly not right though. Just because you work for a UK company does not mean you need to pay tax in the UK even if the work you do there is for "use" in the UK. Tell your employer to smile as well because he also won't need to pay the employer NI anymore either.
Saying that however you need to be very careful about how many days you spend in the UK when you do go back there for work. You need to seek professional advice on that, possibly from the IR as well as those laws are a minefield.
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Old 31.01.2011, 18:32
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Re: I work for a UK company but moving to Switzerland. Which country do I pay income

Thanks NotAllThere. My company are fielding these questions out to a couple of accountants from what I understand but they are getting varied responses which is all the more confusing! I will definitely give HMRC a call this evening though as a starting point. It is just so frustrating trying to establish something that should surely be so simple to clarify!
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Old 31.01.2011, 18:37
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Re: I work for a UK company but moving to Switzerland. Which country do I pay income

Great thanks Colin Wheeler. So far all of the feedback everyone has given has pointed towards Swiss taxation which is what I have interpreted from the information that I have read from various places on the web - and what I want to hear! That's a great point about their NI contributions because I know these can mount up to something quite sizeable and could certainly be seen as a positive. Are you aware of anything similar in Switzerland that they will need to pay instead though?

I will be spending a maximum of 50 days a year in the UK although it could be considerably less, it all comes down to how I plan my meetings really. I will certainly obtain professional advice in this area though. Thanks again
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Old 31.01.2011, 18:45
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Re: I work for a UK company but moving to Switzerland. Which country do I pay income

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Are you aware of anything similar in Switzerland that they will need to pay instead though?
There are a number of insurances that you need to have here but I believe that you can take care of those yourself and that the UK company will not have to do anything but please check with others on this as I really don't have a definitive answer.
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Old 31.01.2011, 18:49
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Re: I work for a UK company but moving to Switzerland. Which country do I pay income

Of course, yes I will. Thanks very much for your further comments. I know that my husbands company are paying for our families health insurances but I will investigate others further. I guess the question I should really be asking is can anyone recommend a tax accountant who can give us definitive professional advice on all of the above...
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Old 01.02.2011, 23:38
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Re: I work for a UK company but moving to Switzerland. Which country do I pay income

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Of course, yes I will. Thanks very much for your further comments. I know that my husbands company are paying for our families health insurances but I will investigate others further. I guess the question I should really be asking is can anyone recommend a tax accountant who can give us definitive professional advice on all of the above...
If the Swiss give you a B permit then you are a resident & they will expect you to pay tax in Switzerland.
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Old 01.02.2011, 23:44
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Re: I work for a UK company but moving to Switzerland. Which country do I pay income

I'm a Brit living and working in Switzerland for 3.5 years on a B permit and also owning and renting out a property in the UK. I've just had to pay Swiss taxes on all my global income and assets - the British Government is very generous in this respect, unlike the USA! HMRC have a special scheme for dealing with foreign domiciled landlords and it is pretty straightforward (especially as in my sad case where the rental income doesn't significantly exceed costs)
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