Sole trader based in Switzerland

[SarahL2012]

I'm doing the finances for a v small company (2 employees and a consultant based in Switzerland). To date the consultant has been invoicing via his company but for a variety of [tax related] reasons he now wants to invoice Client Co under his own name.

If he was a sole trader based in the UK I would be strongly advising against it because the chances of HMRC classifying him as an 'employee' would be pretty high. He's a Swiss national though - so are they right in that HMRC can't deem him to be an employee as he isn't UK based?

[northernladuk]

Have you asked your accountant?

[SarahL2012]

Have you asked your accountant?

*sigh* have a few months away from the forum & nothing changes...........

[NotAllThere]

If the company is UK based and the consultant CH based (its not entirely clear), then it's entirely a matter for the Swiss authorities, so long as the consultant isn't tax resident in the UK. To be a sole trader in CH, you have to demonstrate you have more than one more client and have the appearance of being in business on your own account. For my wife and son who've managed this, that entailed creating business cards...

I work for a UK company via my GmbH almost entirely remotely (last time I went to their UK office was two years ago for a couple of day) - no involvement with HMRC whatsoever.

[SarahL2012]

That is the set up - so long as the UK Co won't have a problem then I'm happy. Thank you!

[BlasterBates]

If the consultant is coming over to work in the UK on a weekly basis, then he's subject to UK law not Swiss law. It's UK business and income. If he's working remotely in Switzerland then it's Swiss law.

[NotAllThere]

If the consultant is coming over to work in the UK on a weekly basis, then he's subject to UK law not Swiss law. It's UK business and income. If he's working remotely in Switzerland then it's Swiss law.

And if he is regularly working in the UK, then HMRC can come after the small co.