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Old 24.05.2021, 18:09
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Role Found In UK But Living In Switzerland

I am almost in the final rounds of securing a role which will be remote working but I will be paid in the UK and on UK payroll - I will continue to have a Swiss address and a B resident permit.

I will have UK tax deducted at source because I am on the UK payroll but I just wondered whether anyone had a similar experience and whether I can recover the PAYE tax which is paid in the UK and instead be taxed in Switzerland on that income.

Does anyone know whether that is possible?
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  #2  
Old 24.05.2021, 18:31
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Re: Role Found In UK But Living In Switzerland

Have them pay your salary to your Swiss bank account.
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Old 24.05.2021, 20:02
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Re: Role Found In UK But Living In Switzerland

After PAYE tax they can pay the salary to my swiss account - But in the UK tax is deducted at source which is the problem here
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Old 24.05.2021, 21:43
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Re: Role Found In UK But Living In Switzerland

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I am almost in the final rounds of securing a role which will be remote working but I will be paid in the UK and on UK payroll - I will continue to have a Swiss address and a B resident permit.

I will have UK tax deducted at source because I am on the UK payroll but I just wondered whether anyone had a similar experience and whether I can recover the PAYE tax which is paid in the UK and instead be taxed in Switzerland on that income.

Does anyone know whether that is possible?
They're doing it wrong.

If you are resident in Switzerland, you should be paying social contributions and tax here. The tax situation can be relatively easily sorted out by tax returns. The social contributions not. Strictly the UK company should not make any deductions, but simply pay you gross + the employers social contribution (so you account for AHV under ANOBAG).

You pay tax only where you are tax resident.

Last edited by NotAllThere; 24.05.2021 at 22:12.
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Old 24.05.2021, 23:40
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Re: Role Found In UK But Living In Switzerland

Could you please expand on that NAT - The UK company will pay me on the UK payroll - There is no way around that

Its up to me to recover it back from HMRC and elect to be taxed in switzerland.

My UK accountant has said he does not know if that would be possibel
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Old 24.05.2021, 23:41
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Re: Role Found In UK But Living In Switzerland

Edit : This role is intended to be for UK people but it is remote so its up to me to make it work
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Old 24.05.2021, 23:50
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Re: Role Found In UK But Living In Switzerland

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My UK accountant has said he does not know if that would be possibel
Then maybe you should find yourself a tax expert. Plenty of people being employed and paid in the U.K. and living elsewhere (F1 drivers for example).
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Old 25.05.2021, 01:14
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Re: Role Found In UK But Living In Switzerland

They do that through offshore or Limited company setups - Not through simple PAYE payroll
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Old 25.05.2021, 14:09
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Re: Role Found In UK But Living In Switzerland

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Could you please expand on that NAT - The UK company will pay me on the UK payroll - There is no way around that

Its up to me to recover it back from HMRC and elect to be taxed in switzerland.

My UK accountant has said he does not know if that would be possibel
If you live and work in Switzerland, you must pay the local equivalent of NI in Switzerland. Both employer's and employee's contribution. You can do that through ANOBAG. You are legally obliged to pay tax in Switzerland on your worldwide income. You do not "elect" to be taxed in Switerland.

Here's a couple of links for your interest. taxadvisermagazine HMRC

As far as UK payroll is concerned, your employer can keep you on that, but should in fact pay you gross - no NI or tax deductions at all. You should however negotiate an uplift to cover the employer's NI they don't have to pay either. There is a chance that the employer will run into difficulties with HMRC over their reporting if they incorrectly pay tax and NI for an employee who is not liable.

Another link:
https://shieldgeo.com/how-to-pay-you...-uk-employers/
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Last edited by NotAllThere; 31.05.2021 at 08:32.
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Old 31.05.2021, 09:02
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Re: Role Found In UK But Living In Switzerland

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You pay tax only where you are tax resident.
Not absolutely. Cross border witholding taxes are quite common although you get those deducted from your local tax. Not relevant in this case of course.

Social security - mostly a tax by another name - is usually tied to where you work (at least in this general geographic area), not where you are resident. All those German, Austrian, French and Italian commuters pay their social security in CH.
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Old 31.05.2021, 09:26
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Re: Role Found In UK But Living In Switzerland

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Not absolutely. Cross border witholding taxes are quite common although you get those deducted from your local tax. Not relevant in this case of course.

Social security - mostly a tax by another name - is usually tied to where you work (at least in this general geographic area), not where you are resident. All those German, Austrian, French and Italian commuters pay their social security in CH.
True.

In this instance though... The OP would be working in Switzerland and tax resident in Switzerland (and possibly tax resident in the UK and maybe several other countries...)
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Old 31.05.2021, 21:29
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Re: Role Found In UK But Living In Switzerland

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After PAYE tax they can pay the salary to my swiss account - But in the UK tax is deducted at source which is the problem here
You can set this up differently plus it will make your life better:
- set yourself up with a Swiss payroll service provider (eg payrollplus.ch)
- have them invoice your 'employer' each month
- your employer pays them, they pay you (and subtract social charges, etc plus you can still pay taxes in CH)

You will be better off. And it is perfectly legal.

Obviously the service provider creams a % off of it but net you'll be better off with lower CH taxes etc.
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Old 09.06.2021, 11:18
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Re: Role Found In UK But Living In Switzerland

I have been offered the role and the salary is very good - However I will be on the UK payroll and this role is for a project that will last one year

If I take the role I will earn the same amount (after tax) as the Rav and I will have a job for a year and then no rights to redundancy....

Is it possible to reserve my rav rights and work abroad for a year and then return to claim rav?
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Old 09.06.2021, 13:03
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Re: Role Found In UK But Living In Switzerland

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I have been offered the role and the salary is very good - However I will be on the UK payroll and this role is for a project that will last one year

If I take the role I will earn the same amount (after tax) as the Rav and I will have a job for a year and then no rights to redundancy....

Is it possible to reserve my rav rights and work abroad for a year and then return to claim rav?
What NAT said in post #9 holds. You should have no liability for UK tax or NIC but must pay the Swiss AHV, ALV, etc. You need to get a "NT" code from the Revenue (assuiming that is still correct after all the years I have been away from the business), afraid I've no idea how you stop UK NIC payments though.

And if you are paying ALV then your entitlement to benefits remains. As long as you have enough contributions you will qualify. "Reserving" RAV rights doesn't come into it.
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