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Old 05.04.2011, 13:59
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Ouch , UK tax hit?

I am a UK citizen. I have worked in Switzerland (Zurich) since April 2010 for a UK company.

From April 2010 to November 2010 I worked in Swizterland full-time under a Short Term Assignment (STA) and was paid on the UK payroll in GBP and paid PAYE UK taxes. From November 2010 until now I do the same role for the company but I moved to an indefinate (perm.) Swiss contract paid by the Swiss subsiduary of the UK company and pay swiss taxes.

Can the UK make me pay UK tax on my Nov 2010-Dec 2011 or Nov 2010-April 2011 Swiss income?
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Old 05.04.2011, 14:01
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Re: Ouch , UK tax hit?

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I am a UK citizen. I have worked in Switzerland (Zurich) since April 2010 for a UK company.

From April 2010 to November 2010 I worked in Swizterland full-time under a Short Term Assignment (STA) and was paid on the UK payroll in GBP and paid PAYE UK taxes. From November 2010 until now I do the same role for the company but I moved to an indefinate (perm.) Swiss contract paid by the Swiss subsiduary of the UK company and pay swiss taxes.

Can the UK make me pay UK tax on my Nov 2010-Dec 2011 or Nov 2010-April 2011 Swiss income?
Yup, they can consider you tax-resident in the UK for the full UK financial year of April 2010-April 2011. Sorry

Now would be a very good time to consult a UK professional tax adviser to try to mitigate some of the additional tax they may come after you for.
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Old 05.04.2011, 14:04
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Re: Ouch , UK tax hit?

Oh, and welcome to EF
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Old 05.04.2011, 14:15
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Re: Ouch , UK tax hit?

Thank you for the advice.

The only feeling I have no is an intense desire to burn my passport!
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Old 05.04.2011, 14:25
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Re: Ouch , UK tax hit?

When did you register here? You could argue that from that date you permanently left UK.

To keep your non resident status you are not allowed to return too often (I think it is a maximum of 6 weeks in any tax year)

I left Dover on 15th March 1977 to work for a UK company in Germany, and I have not paid any UK tax since then.

I agree with Weejeem
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Now would be a very good time to consult a UK professional tax adviser to try to mitigate some of the additional tax they may come after you for.
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Old 05.04.2011, 14:36
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Re: Ouch , UK tax hit?

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When did you register here? You could argue that from that date you permanently left UK.
Not a snowball's chance...

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...
From April 2010 to November 2010 I worked in Swizterland full-time under a Short Term Assignment (STA) and was paid on the UK payroll in GBP and paid PAYE UK taxes.
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Old 05.04.2011, 14:38
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Re: Ouch , UK tax hit?

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I am a UK citizen. I have worked in Switzerland (Zurich) since April 2010 for a UK company.

From April 2010 to November 2010 I worked in Swizterland full-time under a Short Term Assignment (STA) and was paid on the UK payroll in GBP and paid PAYE UK taxes. From November 2010 until now I do the same role for the company but I moved to an indefinate (perm.) Swiss contract paid by the Swiss subsiduary of the UK company and pay swiss taxes.

Can the UK make me pay UK tax on my Nov 2010-Dec 2011 or Nov 2010-April 2011 Swiss income?
UK tax typically works on intention and it would seem for this period you would still be counted as a resident for the UK as you had not been - or intended to be - absent for a full fiscal year or enough time to typically break residence. The UK will likely seek tax, but may not if you can show that your intention going forward is to remain non-resident for a full fiscal year and if your employer applied an NT code to your payments. If they do seek tax then you may be able to claim foreign tax credits against what you have paid in Switzerland, but that usually only covers the portion you have paid across and you could still be liable for the amount on top that would be considered your normal tax liability in the UK.

To be honest, I would expect that your employer should be providing you tax assistance in such a case as it is not a clear or easy transistion that you have made due to time already spent between UK and Ch and then moving on to a permanent contract here (there will be travel days, significant presence and economic employer tests to potentially consider too). If they are offering it, I would cetainly be requesting it. Alternatively, I would strongly recommend that you engage a tax consultant on your own behalf if it is not being provided.

Obviously, this is all based on my personal knowledge of tax and is in no way formal advice and is being provided in the spirit of the Forum; so I would not suggest that you act on anything written here without taking formal advice from a registered tax consultant and can not accept any liability if you do

Hope it helps though.
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Old 05.04.2011, 14:40
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Re: Ouch , UK tax hit?

To be frank I got rid of my UK flat in August 2010 (I had no physical residence from then on in the UK). It was more through contract negotiations that meant I went to a local contract in November 2010 instead of earlier.
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Old 05.04.2011, 14:42
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Re: Ouch , UK tax hit?

Many thanks for all your helpful replies. I have sought the advice of a UK-based Expat tax advisor.

The firm did offer tax advice but this issue oddly never came up and given it came from one of the big-4 it's even more bizarre!
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Old 05.04.2011, 15:09
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Re: Ouch , UK tax hit?

i reckon you should be able to avoid UK tax. when in april did you move?
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Old 05.04.2011, 16:40
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Re: Ouch , UK tax hit?

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i reckon you should be able to avoid UK tax. when in april did you move?
12th April...
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Old 05.04.2011, 17:34
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Re: Ouch , UK tax hit?

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12th April...
shame it wasn't before the tax year. anyway, you have a consultant to sort it now anyway. good luck!
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Old 05.04.2011, 19:03
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Re: Ouch , UK tax hit?

Agree. The girlfriend moved here in August and quit her UK job (and found a Swiss one a month later) so that works in my favour, as well as having no (UK residence from August).
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Old 07.04.2011, 15:03
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Re: Ouch , UK tax hit?

I spoke with a tax advisor and it's highly likely I'll be what I originally expected: a UK non-resident despite the STA till November.

HMRC6 gave me this fright.

The girlfriend moving over in August & getting a job here, and not renewing my flat in July 2010 (and not having a residence there) are the main factors. I also have internal work e-mails I could show HMRC that show I'd decided to move here by late June/early July. I also spent very few days in the UK for work or leisure last year.
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