is this a good rate for Zurich ?
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  1. #21

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    Quote Originally Posted by JSBoy View Post
    Yes, no complaints with the headline figure but wanted to compare it with a similar UK rate outside of IR35, its what ends up in the bank account at the end of the tax year that matters.

    Not in finance, well, not directly.



    I'm trying to take home as much as possible, are those expenses allowable before swiss income tax? or do you get a flat rate, read somewhere it was 1500chf per month?

    thanks for the info
    Generally budget for 65-70% take home and that includes your tax allowance.

    So you'd earn net in the bank account about 16K CHF and then allow 3K for expenses if you fly home a couple of times to London.

    That would be CHF 13 K after expenses. The tax rate is around 25% so calculate you need to pay extra UK tax.

    lets say approx 10% so 2400 additional UK tax.

    That would be net 10,500 CHF or 7600 GBP per month
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    Quote Originally Posted by 1 Jack Kada View Post
    Not true. I have done the sums and zug is about 3% less in income tax. By the time you add the train ticket the difference is small

    Work on the basis you are in Zurich and 30% tax with pension and medical included and you get an idea of take home

    You are lucky the sterling is low otherwise this job would not be attractive
    OK, things can change in a few years. but remember the pension is YOUR money. you will get it back after jumping through some hoops.
    the tax people are pretty efficient so long as you stick to ze rules.
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    Quote Originally Posted by BlasterBates View Post
    Generally budget for 65-70% take home and that includes your tax allowance.

    So you'd earn net in the bank account about 16K CHF and then allow 3K for expenses if you fly home a couple of times to London.

    That would be CHF 13 K after expenses. The tax rate is around 25% so calculate you need to pay extra UK tax.

    lets say approx 10% so 2400 additional UK tax.

    That would be net 10,500 CHF or 7600 GBP per month
    Many thanks for this BB, the swiss bodyshop gave me a salary breakdown which showed, as you mention, about 16kCHF monthly net.

    So to get an income net of around 7500GBP, this would be equivalent to me charging around 700 per day outside of IR35 back in the UK -

    edit : Just got an email from them, saying that as I would be earning over 120,000CHF per annum I would fill in a tax return and claim some expenses back, is this the 1500CHF per month? As I only see 600CHF deducted per month for expenses on their illustration.
    Last edited by JSBoy; 25th October 2017 at 07:40.

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    Quote Originally Posted by BlasterBates View Post
    Generally budget for 65-70% take home and that includes your tax allowance.

    So you'd earn net in the bank account about 16K CHF and then allow 3K for expenses if you fly home a couple of times to London.

    That would be CHF 13 K after expenses. The tax rate is around 25% so calculate you need to pay extra UK tax.

    lets say approx 10% so 2400 additional UK tax.

    That would be net 10,500 CHF or 7600 GBP per month
    If you are in zurich for six months on a work contract you will be non tax resident in the UK and therefore you wont pay double tax.

    Honestly 16K a month after tax in Zurich is fantastic - You will save a ton of cash and retire at 35

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    Quote Originally Posted by 1 Jack Kada View Post
    If you are in zurich for six months on a work contract you will be non tax resident in the UK and therefore you wont pay double tax.
    Where do you get that idea from? It's a lot harder than it used to be to escape UK tax....
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    Quote Originally Posted by 1 Jack Kada View Post
    If you are in zurich for six months on a work contract you will be non tax resident in the UK and therefore you wont pay double tax.
    Not true. See 91 day rule and Statutory Residency Tests and then if still interested read about split year tax treatment.

    Doesn't look like your did your homework before accepting this one.....

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    You will not be subject to double taxation because of the UK/Swiss double taxation agreement, and not because you will become non resident in the UK for tax purposes.

    You are dual resident, taxable in both Zurich and the UK on the same income however the tax you pay locally will be credited against the tax liability arising in the UK. If you have a higher tax rate in the UK you will need to make a balancing payment.

    Leaving UK residency behind is not so straightforward as just counting days however, as a guideline the basic principles are
    • Work full time overseas (equivalent full time hours, so part time or rotational work does not count)
    • Have one complete tax year outside of the UK (unless you are already working abroad, the next opportunity is April 2018-April 2019)
    • Dont visit the UK for any more than 183 days in any one non-resident tax year and no more than 90 days average per year during the full period of non residency.

    HTH

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    Quote Originally Posted by Sue at IPAYE View Post
    You will not be subject to double taxation because of the UK/Swiss double taxation agreement, and not because you will become non resident in the UK for tax purposes.

    You are dual resident, taxable in both Zurich and the UK on the same income however the tax you pay locally will be credited against the tax liability arising in the UK. If you have a higher tax rate in the UK you will need to make a balancing payment.

    Leaving UK residency behind is not so straightforward as just counting days however, as a guideline the basic principles are
    • Work full time overseas (equivalent full time hours, so part time or rotational work does not count)
    • Have one complete tax year outside of the UK (unless you are already working abroad, the next opportunity is April 2018-April 2019)
    • Dont visit the UK for any more than 183 days in any one non-resident tax year and no more than 90 days average per year during the full period of non residency.

    HTH
    thankyou for this Sue

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    Quote Originally Posted by JSBoy View Post
    Hi,

    I'm in the running for a 1200chf/day role in Zurich, for 6 months.

    I'll still be UK based, but living in a hotel and flying back at weekends to the UK every 3 or 4 weeks to see the family.
    I'm based in Basel.

    That's a good rate for contracting in Switzerland. Rates have been falling in the past few years - I'd estimate about a 20% drop since 2010. Mainly due to the strength of the CHF. In and , it's remained pretty much the steady.

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    Quote Originally Posted by JSBoy View Post
    ...
    edit : Just got an email from them, saying that as I would be earning over 120,000CHF per annum I would fill in a tax return and claim some expenses back, is this the 1500CHF per month? As I only see 600CHF deducted per month for expenses on their illustration.
    Many items not claimable in the UK are deductible in CH. For example, home to office travel. If you're maintaining a home in the UK; you may be entitled to a deduction. (For me in Basel it was 18K). You'll be paying tax at source; most people find that when they've submitted their tax return, they have additional tax to pay. For this reason, it's worth getting a good local accountant for your tax return.

    Tax has 3 layers in Switzerland. Federal, Cantonal and local. Federal accounts for about 20% of the tax you pay; for Cantonal and local, it's each 40%. The three layers are not identical when it comes to deductions. Your local tax depends on where you are resident, and it can make quite a difference. Unless you identify with one of the state churches, write "none" against your religion when you register. There is a church tax.

    comparis.ch is a good site for figuring out where the lower tax areas are. In some cases it is worth getting a season ticket for the train and live further away, such is the difference in tax rates.
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    Quote Originally Posted by JSBoy View Post
    thankyou for this Sue
    This tax residency is quite tricky as if you are returning home regularly to the UK and almost especially if you have a partner in the UK normally you would they would see you as tax resident. If you spend 30 days per year in your home you are automatically considered as UK tax resident if you don't have a home in Switzerland, i.e. living in a hotel.

    https://www.gov.uk/government/upload...nal_078500.pdf

    If you have a home in Switzerland as well as in the UK i.e. a flat then you will have to convince HMRC that Switzerland is your main home. This is where it gets tricky and you will have to submit proof of where you were on every weekend, all details of travel and demonstrate that you have social connections in Switzerland.

    I would make a clear decision about where your home is and not try to fake it by renting an apartment just to give the appearance of residency. That will simply become a nightmare when you are trying to convince both tax authorities where you're resident. If you're married it's pretty clear where ever your wife is, is your home.

    I worked in Switzerland for several years but I was resident in Germany, I had to go through a laborious process with the Swiss authorities of satisfying them that I was not resident in Switzerland and therefore only subject to tax on Swiss income and entitled to the expat expenses allowance.

    If you wish to be taxed only in Switzerland, give up your flat or house in the UK or let it out and don't return there. If you choose to be UK resident stay in hotels or a small furnished apartment and keep details of your plane tickets and travel and don't join any clubs. Avoid the 50-50 situation where your residency is unclear.
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