Working Outside the UK

[BlasterBates]

You only count as non-resident if you are out of the country for a whole tax year. There is a concession that if you are intending to remain out of the country for a whole tax year, that you can be treated as non-resident from the day of your departure.

For tax purposes, then, you're still resident in the UK.

The total tax you'll pay to HMRC is the amount due under UK law, less amount paid to the Swissies / Zürchers.

Not necessarily. If you are in Switzerland more than 183 days in a fiscal year then probably your Swiss income would only be taxed in Switzerland, the UK would tax you only on UK sourced income. Something like that is stated in the DTA. You see if you are in Switzerland more than 183 days then you would be considered fully resident in Switzerland, and although you can be resident in two countries the DTA does take into account the fact that you satisfy the residency rules of the other country.

Otherwise you end up in a catch 22 who taxes your dividends from the US first for example? Does Switzerland tax them and UK add a topup tax or is it the other way round? In fact you'll probably find that will be taxed only once, though I can't say for sure on that one.

It isn't simple though, everything has to be done on a case by case basis.

In my understanding as long as the Swiss contract is longer than 183 days the UK will probably exempt you from UK tax.

[NotAllThere]

Not necessarily. If you are in Switzerland more than 183 days in a fiscal year then probably your Swiss income would only be taxed in Switzerland, the UK would tax you only on UK sourced income. Something like that is stated in the DTA. You see if you are in Switzerland more than 183 days then you would be considered fully resident in Switzerland, and although you can be resident in two countries the DTA does take into account the fact that you satisfy the residency rules of the other country....

I'd forgotten that scenario, and stand corrected!

[BlasterBates]

Having said that I think it is excellent advice to ring up HMRC and ask them. If you get a sufficiently senior offiicial that's where you get the best advice. i.e. read up the DTA and then talk it through with someone.

[The Spartan]

Not necessarily. If you are in Switzerland more than 183 days in a fiscal year then probably your Swiss income would only be taxed in Switzerland, the UK would tax you only on UK sourced income. Something like that is stated in the DTA. You see if you are in Switzerland more than 183 days then you would be considered fully resident in Switzerland, and although you can be resident in two countries the DTA does take into account the fact that you satisfy the residency rules of the other country.

Otherwise you end up in a catch 22 who taxes your dividends from the US first for example? Does Switzerland tax them and UK add a topup tax or is it the other way round? In fact you'll probably find that will be taxed only once, though I can't say for sure on that one.

It isn't simple though, everything has to be done on a case by case basis.

In my understanding as long as the Swiss contract is longer than 183 days the UK will probably exempt you from UK tax.

Hi BB

The contract is from 26/3 - 31/12 though I was in the UK for a few days sorting bits and pieces out from 03/5-13/5, I'll give the inland revenue a ring and see what they say thank you everyone you've been most helpful.

[The Spartan]

Hi Everyone

Thought I would update you I spoke to HMRC and upon returning to the UK I will be liable to pay the extra tax, they will look at my foreign income on my tax return and then calculate the difference for which I will have to cough up the difference.