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Old 16.01.2020, 23:04
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Swiss to UK

Hi,

I have a few questions before I make the jump from the UK to colder climbs:

1) How do I send part of my salary back to the UK without getting hammered on charges?

2) I have a house in the UK which I have a lodger in and will earn some money from this, I take it that I only have to disclose this to HMRC?

3) I intend to return back to the UK and my house in the hols I think in total it is around (110 days) to do some freelance work in the UK, is there anything I need to be aware of?

4)I think I read somewhere I am only allowed to be in the UK for only a certain number of days, is this true?

Any info from those in the know will be appreciated!

With thanks
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Old 17.01.2020, 07:24
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Re: Swiss to UK

2. If you earn over CHF120,000 you'll have to fill in a Swiss tax return and include the UK house in your calculations. The rent you get and the value of the house will have to be included on the form. Against that any repair costs you might have can be deducted.

3. Not really. On a B/C permit you can't be out of the country for more than 6 months at a time or the permit becomes invalid. Any income earned abroad will also have to be put on your Swiss tax return.

4. Unless that's something under the new Brexit agreements, no.
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Old 17.01.2020, 08:13
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Re: Swiss to UK

Colder climes. And only in winter. In summer it's warmer here.

1. There are plenty of forex companies that will do this cheaper than a bank. This forum has recommendations. Try searching.

2-4 . You are employed as a teacher in the Switzerland. While you're on tax-at-source (most likely with a B permit) with a(global) income below 120K, you may not have to fill in a tax return, so you don't need to be concerned. However, I seem to recall that owning a house requires a tax return. If you do have to fill in a tax return, you'll be taxable in Switzerland on worldwide assets and income.

Notwithstanding work permits (but you won't be away 6 months at a time), you can be in the UK any number of days. But the more days you're there, the greater the chance that you'll be UK tax resident. If you're using your house in the UK during the holidays, it's likely you'll be UK tax resident anyway. As well as Swiss tax resident. Meaning potentially two tax returns - one for UK, one for CH.

Any money you earn in the UK is taxable in the UK. You need also to ensure that NI is paid correctly.

Switzerland and the UK have dual taxation agreements, so any tax paid in one country is offset against the tax paid in the other.
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Old 17.01.2020, 09:16
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Re: Swiss to UK

1. Use transfer wise. Really cheap and easy to move money. While the pound is going down and franc up, I certainly wouldnt worry about small charges.
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Old 17.01.2020, 09:27
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Re: Swiss to UK

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1. Use transfer wise. Really cheap and easy to move money. While the pound is going down and franc up, I certainly wouldnt worry about small charges.
Or Revolut, there is a thread on this forum with great detail. Try searching for Revolut

4) As a British Citizen you can not be denied residency for any period of time. BUT it will have tax implications if the British authorities deem you to be a UK resident. You could have the Swiss decide the same thing. Nightmare!
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Old 17.01.2020, 09:45
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Re: Swiss to UK

+1 for TransferWise.


Really good rates (I've checked them all)
Really easy (via app or website)
*Really* fast


PS: Lemme know if you need a signup code
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Old 17.01.2020, 12:02
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Re: Swiss to UK

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Colder climes. And only in winter. In summer it's warmer here.

.
And even when it is colder here, it often doesn't feel it as there really isn't much wind on most days so there's no wind chill to take into account.
It's not so damp here either which is part of the equation.

All things considered, it usually feels much colder in the U.K, summer or winter.
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Old 17.01.2020, 17:03
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Re: Swiss to UK

Number 4 is your killer.

If you own a house and you have the ability to return to it, chances are HMRC will contjnue to treat you as a UK resident. It is very hard to leave the UK for tax reasons without actually leaving. And by leaving, they mean burning your bridges - selling up.

The number of days you are there in a year is critical. 110 days is too many. Any more than 90 is a problem.

Lots of info on HMRCs website about the statutory residence tests. Which also explains the day allowances and the lovely "deemed days" rule that turns 60 days into 90. (Hint: it is not in your favour).

What will happen is you pay tax in Switzerland, and then HMRC will charge you the difference between what you pay here and what you would have paid earning the same there.

Source: this has been my situation for the past 4 years.

Regards


Ian
(Typing from his seat on the plane home, while doing a UK tax return.)
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Old 17.01.2020, 17:06
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Re: Swiss to UK

Oh and number 3 (working freelance in UK) is a bad idea too, as you may need to declare ANOBAG in Switzerland, as well as paying tax in UK as that work is usually deemed taxable in the country your arse is sat in when you do it...
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Old 17.01.2020, 17:27
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Re: Swiss to UK

https://www.gov.uk/tax-foreign-income/residence

https://www.gov.uk/government/public...dence-test-srt
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Old 17.01.2020, 20:36
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Re: Swiss to UK

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Hi,

I have a few questions before I make the jump from the UK to colder climbs:

1) How do I send part of my salary back to the UK without getting hammered on charges?

2) I have a house in the UK which I have a lodger in and will earn some money from this, I take it that I only have to disclose this to HMRC?

3) I intend to return back to the UK and my house in the hols I think in total it is around (110 days) to do some freelance work in the UK, is there anything I need to be aware of?

4)I think I read somewhere I am only allowed to be in the UK for only a certain number of days, is this true?

Any info from those in the know will be appreciated!

With thanks
If you lodge a tax return here you have to include all assets and all income wherever they are. Failure to do so is a criminal charge here
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Old 19.01.2020, 18:40
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Re: Swiss to UK

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Colder climes. And only in winter. In summer it's warmer here.

1. There are plenty of forex companies that will do this cheaper than a bank. This forum has recommendations. Try searching.

2-4 . You are employed as a teacher in the Switzerland. While you're on tax-at-source (most likely with a B permit) with a(global) income below 120K, you may not have to fill in a tax return, so you don't need to be concerned. However, I seem to recall that owning a house requires a tax return. If you do have to fill in a tax return, you'll be taxable in Switzerland on worldwide assets and income.

Notwithstanding work permits (but you won't be away 6 months at a time), you can be in the UK any number of days. But the more days you're there, the greater the chance that you'll be UK tax resident. If you're using your house in the UK during the holidays, it's likely you'll be UK tax resident anyway. As well as Swiss tax resident. Meaning potentially two tax returns - one for UK, one for CH.

Any money you earn in the UK is taxable in the UK. You need also to ensure that NI is paid correctly.

Switzerland and the UK have dual taxation agreements, so any tax paid in one country is offset against the tax paid in the other.
Thanks for that info really useful, my income is very modest under 40000CHF, I was hoping to sort any income I earn on the house will be sorted out through an accountant here in the UK, if it is a nightmare then could be a case of not earning an income from it.
The school said I would be classed as a swiss resident, but I would like to keep my British residency as well.
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Old 19.01.2020, 18:41
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Re: Swiss to UK

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If you lodge a tax return here you have to include all assets and all income wherever they are. Failure to do so is a criminal charge here
Hoping I don't have to do that, I think the school take care of it.
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Old 19.01.2020, 18:45
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Re: Swiss to UK

Itís not just the revenue! In Switzerland your wealth is taxed, even properties owned in another country.

Not a large tax and you can deduct some, but not all expenses.
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Old 19.01.2020, 18:47
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Re: Swiss to UK

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Number 4 is your killer.

If you own a house and you have the ability to return to it, chances are HMRC will contjnue to treat you as a UK resident. It is very hard to leave the UK for tax reasons without actually leaving. And by leaving, they mean burning your bridges - selling up.

The number of days you are there in a year is critical. 110 days is too many. Any more than 90 is a problem.

Lots of info on HMRCs website about the statutory residence tests. Which also explains the day allowances and the lovely "deemed days" rule that turns 60 days into 90. (Hint: it is not in your favour).

What will happen is you pay tax in Switzerland, and then HMRC will charge you the difference between what you pay here and what you would have paid earning the same there.

Source: this has been my situation for the past 4 years.

Regards


Ian
(Typing from his seat on the plane home, while doing a UK tax return.)
Hi Ian,

I don't intend selling up or burning bridges, that is for sure. I can always make it 90 days, not a bad thing to spend some of the Christmas holidays skiing
Tax side is very confusing and hoping the accountant can sort this out for the next financial year, abit confused over the "deemed days"
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Old 19.01.2020, 18:51
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Re: Swiss to UK

Are you British? If you are I see no reason to have British residency. If you are not,it gets even more complicated.

You probably should seek professional advice ...
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Old 19.01.2020, 21:34
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Re: Swiss to UK

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Are you British? If you are I see no reason to have British residency. If you are not,it gets even more complicated.

You probably should seek professional advice ...
Yes British, this all sounds like it is going to get very complicated, thanks for the replies!
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