UK tax on swiss salary ?

[Andy2]

I am taking up a contract in switzerland which is initially for 6 months but very likely to be extended.
I will be in UK for 160 days in this financial year . I will be an employee of a payroll company there and will be taxed 25% .
Do I have to pay top-up tax in UK , as UK tax rates are 40%.

I read on hmrc website that if I become non-resident then I dont have to pay UK tax on my swiss salary otherwise I will have to payup.
It's not clear how to do that.
Do I close my company here and ask my family to move with me ?

Any help appreciated.

[stek]

Don't forget to factor in the CH obligatory Heath insurances etc, and have u also considered how expensive it is to live there?

[NotAllThere]

Do I have to pay top-up tax in UK , as UK tax rates are 40%

Even if you take your family and close your company down, unless you intend to be away for a complete tax year or more, you will not cease to be tax-resident in the UK. Even then there are restrictions on how much time you can spend in the UK before you become resident again.

If you do intend to be away for a complete tax year or more (which it looks like you'd like to be, and who can blame you), but return early, then you will be considered tax-resident in the UK.

If you're paid a reasonable CHF rate, then the comparative cost of living shouldn't matter. I came here 10 years ago, when the rate was 2.3. England has become very much cheaper - Switzerland has remained the same. Just don't be fooled into thinking 500CHF a day is a lot of money because it's £400. It won't go as far as £400 a day in the UK.

[Andy2]

Even if you take your family and close your company down, unless you intend to be away for a complete tax year or more, you will not cease to be tax-resident in the UK. Even then there are restrictions on how much time you can spend in the UK before you become resident again.

If you do intend to be away for a complete tax year or more (which it looks like you'd like to be, and who can blame you), but return early, then you will be considered tax-resident in the UK..

Thats why I am confused. Even if I spend one year away from UK its not certain that I will become non-resident.

If you're paid a reasonable CHF rate, then the comparative cost of living shouldn't matter. I came here 10 years ago, when the rate was 2.3. England has become very much cheaper - Switzerland has remained the same. Just don't be fooled into thinking 500CHF a day is a lot of money because it's £400. It won't go as far as £400 a day in the UK.

The rates are double of what I am getting in UK. But the big fear is if hector decides to tax me 40% , my net income will be the same as in UK.

[stek]

Thats why I am confused. Even if I spend one year away from UK its not certain that I will become non-resident.



The rates are double of what I am getting in UK. But the big fear is if hector decides to tax me 40% , my net income will be the same as in UK.

Costs are triple tho! Hope it's not Geneva, accom is impossible unless you want to live in tulipehole for megabucks...

A decent pint is eight quid! But, if u wanna drink at home Feldschlossen is roughly a quid a tin from Migros or Coop (Zurich prices).

I think it's fair to say, NAT will confirm since he lives there, effective real taxation is about 30%, inc RAV, etc, but make sure you allow for lack of decent accom., and astronomical prices if a Swiss person is involved in the process, i.e. beer at a bar, pizza at a restaurant.

Four quid a cup, i.e. not a pot or mug, a cup, of tea!!!

Please, please make sure you look at the costs...

[NotAllThere]

Thats why I am confused. Even if I spend one year away from UK its not certain that I will become non-resident.

The rates are double of what I am getting in UK. But the big fear is if hector decides to tax me 40% , my net income will be the same as in UK.

If you are away from the UK for a complete (UK) tax year, then you are non-resident for that year. There's a concession to become non-resident immediately you leave, but only if you intend to be away indefinitely. The average permie salary in Switzerland is CHF 60K. A programmer could be on 80K-120K. A family of four can live reasonably on 100K.

Don't drink Feldschlossen. It's headache in tins. Get your booze from Denner though. Do visit English Forum Switzerland See https://calculators.credit-suisse.co...ory/tax/tax.do for tax calculation.

I'm on a fairly hefty rate. My overall rate of tax is 27%. My marginal rate is 33%. Employees NI is 5.05% up to 100K, 1% (I think) above that. Employers NI is the same IIRC. Health insurance costs me (wife and three kids, one of whom is an adult) 1000CHF a month - I can choose any hospital in the country, and any doctor in the canton and can see a specialist without referral from my GP. Last time I needed an MRI, I had to wait... 2 days.

[JustMe]

Welcome

I am taking up a contract in switzerland which is initially for 6 months but very likely to be extended.
I will be in UK for 160 days in this financial year . I will be an employee of a payroll company there and will be taxed 25% .
Do I have to pay top-up tax in UK , as UK tax rates are 40%.

I read on hmrc website that if I become non-resident then I dont have to pay UK tax on my swiss salary otherwise I will have to payup.
It's not clear how to do that.
Do I close my company here and ask my family to move with me ?

Any help appreciated.

hi,
I am also working in Switzerland. But I am living in Belgium. I pay my tax in Switzerland, however I have to declare also in Belgium. But I do not have to pay anything in Belgium.
In Switzerland you will be taxed at source. So you will receive a nett-income.
Renting something is very expensive, 1000 - 1500 chf per month is normal.
Health-Insurance about 200 - 250ch a month

Keep you flight tickets, at the end of the year , you can ask to adapt your source-tax. You will probably get some money back from the tax authority

Preisvergleich is a very good page

PM me for more information about rates.

regards,
Justme

[Andy2]

Cheers Guys , that's some useful information.

If you are away from the UK for a complete (UK) tax year, then you are non-resident for that year. There's a concession to become non-resident immediately you leave, but only if you intend to be away indefinitely. .

My intention is to leave indefinitely but just in case I come back after one year , will I still be considered non-resident for that year?

I think if I will contribute to swiss pension to the maximum , I could save myself from any potential tax problem in the UK beacause they wouldn't tax the swiss pension or would they ?
I will not bring any money to the UK.

I can choose any hospital in the country, and any doctor in the canton and can see a specialist without referral from my GP. Last time I needed an MRI, I had to wait... 2 days.

Would you mind sharing which krankenkasse and which plan is that or pm me if you like.