Re: UK tax free redundancy payout
Does her employer have a UK or Swiss address for her on file? Is she employed as an employee or external contractor?
If the Swiss tax authorities recognise the payment as "Entschädigung" for loss of employment (severance) then taxes-only are likely due here from the date of registration/grant of permit, subject to the usual tax free allowance on a part-year basis. (In the same way her UK tax liability will be calculable on a part-year basis on UK departure).
Other deductions are usually only due on habitual salary payments that are pensionable so subject to NI in UK, and AHV, ALV etc here, again dependent on the employment relationship type (employee, contractor etc)
Has she already applied for the Permit meaning she has already declared that she lives here and is no longer resident anywhere else including the UK?
Given the tax and other consequences of declaring a change in residency to the authorities here, why not search for a specialist Treuhand for professional advice given the amounts involved?
Last edited by magyir; 28.10.2020 at 15:34.
Reason: clarity
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