Swiss Contract - Vevey

**vadhert** · 22 January 2015, 10:54

Originally posted by silentbull View Post

Hi

I am a British citizen having a possible contract starting from March 15 for a duration of 10 months till end of year 2015.

I will be living single and going through a payroll company in Swiss where they are sponsoring me G permit.

Please clarify the following.

1. After tax, roughly I will be paid around 10500CHF per month. Is it good enough for a billing rate I was getting in UK for 350 pounds per day.

2. I will still be running my UK limited company as the contract is only 10 months. Do i fall under any top up tax while getting the money back in UK or since the tax is already taken in Swiss, am i free based on double taxation.

3. I will still be maintaining my rental home in UK as I have all my things and intend to come back to UK after 10 months. Is this ok or do i need to inform HMRC about my move

Please advise whether it is worth taking this contract as well as tax issues in both UK and Swiss.

Regards
SilentBull

Not worth taking in my opinion. Swiss day to day life is very expensive and I presume you will have to fork out for rent and expenses too.

I'm sure there are tax implications if its less than 12 months so you would pay tax here too. Someone else can confirm this.

I wouldn't bother to be honest.

**Magpie252** · 22 January 2015, 15:02

I wouldn’t be so quick to discount it

If £350/day is your normal acceptable rate, then you make ~£7K gross, less deductions, so say £5K net.

You can rent from 2,300CHF/month Appartement meublé C703, au centre-ville, Lausanne | rent Furnished dwelling | homegate.ch leaving 8,200CHF or ~6,200GBP

I’d put your UK stuff in storage for 10 months to minimise costs back home, then enjoy life in Switzerland.

Only you can decide if it’s worth it, I can only tell you that it won’t make you rich, but then you won’t be much worse off than staying in the UK

If you enjoy the outdoor life (walking/cycling/skiing) then Switzerland is paradise, but if your life is eating/drinking out every night, partying etc Switzerland is not for you

**Bluenose** · 22 January 2015, 20:58

£350pd assumes UK limited tax rates though and for a 10 month stint he will be paying full UK PAYE tax rates on his Swiss income. so Swiss outgoings and UK tax rate, hence not worth it.

**BlasterBates** · 23 January 2015, 11:16

Not everywhere is expensive in Switzerland it's possible to live relatively inexpensively. Switzerland has huge differences in the cost of living depending on where you are.

I was paying CHF 1200 per month for my apartment, near Zürich airport, in contrast a colleague of mine living near the centre of Zürich was paying over CHF 4000.

Eating out in Glattbrugg (near the airport) with a couple of drinks would set you back 30 CHF. A kebab cost 10 CHF.

Supermarket food is generally more expensive, but not everything. Petrol and electrical goods are cheap, public transport is reasonably priced.

A lot of UK contractors just head for the centre of Zürich or get a flat on the lake and pay a huge fortune and then say it's exortionate. But the less popular outlying areas of Zürich or even Baden which is not far away, are inexpensive.

As an example the "relatively" local Flumserberg Ski resort is dirt cheap compared to the more popular resorts such as Verbier or Davos.

So Switzerland doesn't have to be expensive but you need to "shop around".

You will be paying a UK top up tax.

**sal** · 23 January 2015, 12:11

Originally posted by Bluenose View Post

£350pd assumes UK limited tax rates though and for a 10 month stint he will be paying full UK PAYE tax rates on his Swiss income. so Swiss outgoings and UK tax rate, hence not worth it.

Please read the OP more carefully and get some understanding of cross-country taxation before offering advise.

OP is trying to compare his current UK income on £350pd ltd. to the offer in Switzerland where he will be on payroll of Swiss company for about 10500CHF per month post (i guess Swiss) tax. He is not going to use UK ltd for that role so your comment is misguided.

On the topic - OP's best bet is to check with professional or at least on expat forums as there are many more people with relevant experience and expertise to confirm this. But as far as i know because you retain ties with UK you will pay the tax due in Switzerland, then you will have to cross-reference that with the amount of tax due in UK for that type/amount of income and top-up to the UK number in UK if it's greater, if it's lower you are good. I'm not entirely sure if this affects NI in addition to tax. In any case you will need various documentation for the entire process and you better get it right, hens the advise to seek professional help should you decide to go with it.

**Magpie252** · 23 January 2015, 13:13

Originally posted by sal View Post

Please read the OP more carefully and get some understanding of cross-country taxation before offering advise.

OP is trying to compare his current UK income on £350pd ltd. to the offer in Switzerland where he will be on payroll of Swiss company for about 10500CHF per month post (i guess Swiss) tax. He is not going to use UK ltd for that role so your comment is misguided.

Thanks for springing to my defense, it really wasn’t necessary

To the OP:
Do you know what the chances of an extension are? Or do you intend to take a couple of months off at the end of this contract?
Even if you start in March, your first payment will fall within the UK’s 15/16 tax year, last payment would arrive Jan 16. So if you have no UK income for the 15/16 tax year then you effectively become Swiss tax resident, with no additional UK tax due.

I was in the same situation last year, when I received my SA I just had to phone HMRC to say I didn’t have a UK income & answer a load of simple questions. They sent me a letter to sign to confirm what I’d told them on the phone

Note: I’m not a tax expert, please take professional advice especially concerning cross border taxation

**BlasterBates** · 23 January 2015, 13:48

I take back what I said about tax top up. If you are single and don't return back regularly to the UK then after 6 months you will automatically be Swiss resident. The fact that you are Swiss resident means you are no longer resident in the UK, and as was mentioned above this will be accepted by HMRC.

The downside is the Swiss will tax everything, you must declare all your worldwide income and all your assets (wealth tax).

If you return to your home regularly then it becomes more complicated, and you may have to battle a bit to get tax relief.

Best would be to have no place in the UK to return to.

Both countries will assume you are fully tax resident, it's your responsibility to claim tax relief. That means regardless of where you are resident you need to keep proof of your whereabouts so they can clarify that you are (are not) resident. If you return to the UK regularly and you are deemed tax resident in the UK then you will have to prove to the Swiss authorities that you are not resident, otherwise you'll be taxed on your things like interest and wealth in Switzerland.

You will obviously need to inform the bank so that they don't deduct UK tax on your investments as you will be paying tax in Switzerland.

**scope** · 23 January 2015, 14:11

Also keep in mind the recent fluctuation to the CHF.

**Magpie252** · 23 January 2015, 14:24

Originally posted by BlasterBates View Post

The downside is the Swiss will tax everything, you must declare all your worldwide income and all your assets (wealth tax).

Again I’m no expert, but I’m a little confused by the OP thinking he’s being sponsored for a ‘G’ permit, I’ve never heard of a ‘G’ permit

For a 10 month temporary contract, I would fully expect him to receive an ‘L’ permit. He would therefore pay tax at source and wouldn’t be liable to any further taxation in Switzerland. This is borne out by the OP quoting his rate after tax.

Swiss Contract - Vevey