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Old 24.06.2012, 12:52
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Paying UK Tax

Hi,

I wanted to know if when i move to Switzerland, if i need to let the UK HMRC know that i'm going so i don't get stung with a tax bill in the UK?

Is there anything i need to do specifically before i leave?

Thanks guys!
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Old 24.06.2012, 12:54
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Re: Paying UK Tax

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Hi,

I wanted to know if when i move to Switzerland, if i need to let the UK HMRC know that i'm going so i don't get stung with a tax bill in the UK?

Is there anything i need to do specifically before i leave?

Thanks guys!
How long are you leaving for? You do have to inform the revenue, UK tax is self assesment.

There is plenty of stuff here or on the revenues website.
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Old 24.06.2012, 13:04
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Re: Paying UK Tax

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How long are you leaving for? You do have to inform the revenue, UK tax is self assesment.

There is plenty of stuff here or on the revenues website.
OK, will take a look.

I've only ever been in the UK and never self assessed my tax returns (i.e. all done through companies i've worked for).

But I will now be leaving the UK for at least 12 months to work in CH. I'll take a look at the other threads.

Thanks!
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Old 25.06.2012, 18:27
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Re: Paying UK Tax

Download HMRC 6 guidance booklet from their website.

Will you be out of the UK for a whole tax year, with less than 91 days in the UK?
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Old 25.06.2012, 23:54
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Re: Paying UK Tax

Best thing, phone HMRC. That's what I did. Mind you I was getting working family tax credit.
You will get a self assessment toward the end of this tax year.
Keep anything that is relevent (p45, p60, any income, any reasonable out going, i.e. rental recepts and maintainace against property).
Self assesement desn't have to be taxing.
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Old 26.06.2012, 09:04
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Best thing, phone HMRC. That's what I did. Mind you I was getting working family tax credit.
You will get a self assessment toward the end of this tax year.
Keep anything that is relevent (p45, p60, any income, any reasonable out going, i.e. rental recepts and maintainace against property).
Self assesement desn't have to be taxing.
Rental receipts are not tax deductible & there are very few allowable expenses for an employee who gets P60's. Self employed would get a proportion of rent deductible.
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Old 26.06.2012, 10:33
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Re: Paying UK Tax

You need to fill a P85 form.

Job done!

Cheers,

TLD
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Old 26.06.2012, 12:24
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Re: Paying UK Tax

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Rental receipts are not tax deductible & there are very few allowable expenses for an employee who gets P60's. Self employed would get a proportion of rent deductible.
There are if he rents out his house in the UK.
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Old 26.06.2012, 12:29
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Re: Paying UK Tax

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Rental receipts are not tax deductible & there are very few allowable expenses for an employee who gets P60's. Self employed would get a proportion of rent deductible.
I meant receipts of rent given not paid. As in income.
And outgoings such as maintainance of a house you are renting out.

I am not sure if OP rents or has bought in the UK, but if there is property and a limited contract it makes more sense to rent out, especially with prices being so low and a slow market.

Last edited by MsWorWoo; 26.06.2012 at 12:33. Reason: Spelling :- House has a U. If you are renting out your hose, it's probably best not to declare it.
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Old 26.06.2012, 13:03
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I meant receipts of rent given not paid. As in income.
And outgoings such as maintainance of a house you are renting out.

I am not sure if OP rents or has bought in the UK, but if there is property and a limited contract it makes more sense to rent out, especially with prices being so low and a slow market.
Prices low for UK property ! You have been drinking way to much kool aid! If prices fell 40% they would hardly be cheap based on incomes in the UK . Those incomes are probably falling than rising.
Prices of houses increased 100 times in 60 years, incomes nearer 30. The high prices reflected easy credit, which is unlikely to return any time soon.
I keep hearing first time buyers are priced out, that will fix itself when prices fall substantially , an asset is only worth what someone will pay !
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Old 26.06.2012, 15:08
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Re: Paying UK Tax

The latest responses and draft legislation regarding statutory definition of UK tax residence have recently been publised online.

http://www.hm-treasury.gov.uk/consul...dence_test.htm
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Old 26.06.2012, 15:57
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Re: Paying UK Tax

Dear me, they seem to make a hash of things lately HMRC were on strike yesterday and the press have been laying into Alan Carr about that offshore scheme he was involved in.
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Old 26.06.2012, 16:01
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Re: Paying UK Tax

Be very careful here!!

Technically the UK can tax you on your Swiss earnings for the first year (UK tax year), however there is a concession available. In order to qualify however you must live in Switzerland for a complete tax year. In other words you would need to live here until April 2014. If you return any earlier and work again in the UK you will have to pay tax on all Swiss earnings up until April 2013.

As everyone else has highlighted, ring HMRC and get advice.

Good luck !!!
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Old 26.06.2012, 16:07
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Re: Paying UK Tax

He is indeed correct as jonbvn, told me in another thread read the HMRC6 and IR20. Fortunately for me I will be here for a whole tax when my contract ends, but anyone coming here after 6 April 2012 will have to stay till April 2014 to not have to pay UK tax.
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Old 26.06.2012, 17:01
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Re: Paying UK Tax

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He is indeed correct as jonbvn, told me in another thread read the HMRC6 and IR20. Fortunately for me I will be here for a whole tax when my contract ends, but anyone coming here after 6 April 2012 will have to stay till April 2014 to not have to pay UK tax.
HMRC6 is replaced IR20 and is the current guidance. The whole tax year rule still applies even when you are provided with a concession from HMRC. Check section 8 of the attachment.

The SD (statutory definition) rules are due to become law in April 2013. However, even with these new laws you must still satisfy the full tax year rule.
Attached Files
File Type: pdf hmrc6.pdf (739.0 KB, 688 views)
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Old 26.06.2012, 22:50
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Re: Paying UK Tax

So, I will be calling HMRC to get some advice, but it sounds like i'm going to be paying tax if i'm not there until April 2014.

But just to be clear based on what you guys know. I'm not going to be taxed from the UK straight away am i??
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Old 26.06.2012, 23:00
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Re: Paying UK Tax

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But just to be clear based on what you guys know. I'm not going to be taxed from the UK straight away am i??
No. You will have to complete a UK tax return, and you pay based on that.
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Old 26.06.2012, 23:03
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Re: Paying UK Tax

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No. You will have to complete a UK tax return, and you pay based on that.
Apologies for being so slow on this, but i realise it's somewhere which i can get stung if i'm not careful.

Even after filling in the tax return, will i still be liable to pay both Swiss and UK tax if i leave before April 2014?
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Old 26.06.2012, 23:11
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Re: Paying UK Tax

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Apologies for being so slow on this, but i realise it's somewhere which i can get stung if i'm not careful.

Even after filling in the tax return, will i still be liable to pay both Swiss and UK tax if i leave before April 2014?
There is a tax treaty in place, so you do not have to pay twice. Simply put, you pay the Swiss tax at source then pay any additional tax due in the UK when you complete your tax return.
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Old 27.06.2012, 11:21
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Re: Paying UK Tax

Be very careful, I went through the motions a few weeks back thinking I was going to be taxed by both countries and it turned out when I did the calculations I would actually be operated at a loss as here in Switzerland (Zurich) I only pay 8-9% tax on my earnings the rest is social security, pension and sickness and unemployment. Altogether these account for 35% of what I earn each month so I'm left with 65% take into account the the basic tax rate in the UK is 21-22% I think it would mean they'd want 13-14% so that leaves you with 51-52% of what you earn on the first 42K GBP
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