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Old 03.05.2011, 15:56
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Uk Resident working in Switzerland - UK tax

I'm a UK tax resident working in Switzerland, paid by a Swiss company and paying Swiss tax on my earnings.

Does anyone have real experience of how the UK Tax man treats Swiss earnings?

According to my reading of the UK - Swiss double taxation treaty (article 15 for the geeks among us) earnings taxed in Switzerland are not taxable by the UK - period. However, they may be taken into account by the UK in determining your UK tax rate or band for any UK income.

I've taken advice and basically nobody seems to know for certain how all the various regulations and treaties interract.

Any advice or experiences gratefully received.

Thanks,
Andrew
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Old 03.05.2011, 16:55
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Re: Uk Resident working in Switzerland - UK tax

I'm in the same boat, as I only anticipate being here in Switzerland for 6 months.

On past experience from working in Belgium and Germany, for short periods, it's easy. You pay tax in-country then, come April, your accountant (if you have one) submits your usual return based solely on your UK earnings, along with a foreign tax credit thingy, to the HMRC. The overall calculation for the UK is based solely on your income and tax payments in the UK.

As for Switzerland, it all looks reasonably straightforward. You pay your tax here based on your earnings. If you chose to put extra payment into the Swiss tax-free ISA-equivalent, you can take that out subject to a small amount of tax when you leave. That's the most tax-efficient way, I was advised.

At least that's my, admittedly weak, understanding. I'm no tax expert - in fact, I'm more of a tax fool, to be honest.
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Old 03.05.2011, 16:59
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Re: Uk Resident working in Switzerland - UK tax

Here's a link to the actual treaties on HMRC website. Horses mouth etc etc.

I read in the FT today that there's some new agreement coming in to allow the UK government to impose a 50% withholding tax on investors monies "hidden" with Swiss banks - very light on detail about that one but I doubt it would apply to this case anyway.
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Old 03.05.2011, 17:00
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Re: Uk Resident working in Switzerland - UK tax

Try this for info...

UK "resident" - will I have to pay Swiss tax?
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