Contracting in Switzerland

[Harrysp]

I have learnt the following:
- If you work for 6 months then come home, its true, you can be stung by Blair and co here

Weboo, although you have a 6monther how do you know that it will last longer?

This is one of the aspects which is putting me off, i secured a contract out in Zurich, however if the contract doesnt get entended (which in my case I dont think it will as it is for a specific piece of work) and I do come back to the UK, the nice man from IR will give me a good spanking

[expat]

I have learnt the following:
- If you work for 6 months then come home, its true, you can be stung by Blair and co here

Well, if you are resident in the UK (which is what that would make you) then you are liable to pay tax in the UK, but you will get a credit of tax already paid in Switzerland.

So the net effect is that you pay tax at the higher of the 2 countries' rates. It's not any special bizarre kind of sting, it's just paying UK tax.

[weboo]

Initially the contract was for 12 months, but I turned it down, as the money wasnt as good as I expected.

My agent then negotiated a higher rate with the bank I will be working with, but only over 6 months....the procurement dept had set levels/budgets to work with. So I needed to know quickly, and it could have taken more days to get the approval...so rather losing me, this is what they offered.

I um'd and ar'd about it, but they assured me that I will be getting an extension as the team was growing and already a few people short. They have also asked if I'd go perm after 12 months too..

At the end of the day, I am happy with the offer now...and moving the family at the original rate would have made me worry about the benefits of moving.

I just now need to find a school, nursery, place to live, local bar and get the wife something to do during the day apart from shopping.

[BlasterBates]

Normally and I think it is true for Switzerland, they just use your Swiss earnings to recalculate your marginal rate of tax.

That is you're not taxed on the Swiss earnings, but you pay tax at a higher rate on your UK earnings.

You need to check that, but this rule seems to be pretty universal in Europe.

[expat]

Normally and I think it is true for Switzerland, they just use your Swiss earnings to recalculate your marginal rate of tax.

That is you're not taxed on the Swiss earnings, but you pay tax at a higher rate on your UK earnings.

You need to check that, but this rule seems to be pretty universal in Europe.

The way it works for me (working in Switzerland but also paying French tax because resident there) is this:
Pay Swiss tax.
Declare Swiss income to French taxman
Pay French tax on all income including Swiss, but...
Get credit against French tax due, for amount of Swiss tax paid.


This should come to exactly the same thing as your description, which does indeed explain better what the net effect will be, so I am not in any way disagreeing with you.

[Fleetwood]

Are you a "frontalier", expat?

[expat]

Are you a "frontalier", expat?

No, just a resident in France, working in Switzerland. (Actually that was last year but French taxes linger like l'air Du Temps....)

[Fleetwood]

In that case, surely it's better to become a Swiss resident, pay all your taxes en Suisse et dire au fisc français d'aller se faire foutre??? That's what I've done.

[expat]

In that case, surely it's better to become a Swiss resident, pay all your taxes en Suisse et dire au fisc français d'aller se faire foutre??? That's what I've done.

Absolutely. That's what I've done now. But last year I was still in France, largely for personal reasons.

[weboo]

I have spoken with Global K today and they have no solution for Switzerland at the present time. But they have advised that I close down my limited in the UK and leave it dormant. Also to fill in a P85 when I leave and a P86 when I return.

As long as I am out of the UK for 1year and 1day, I am not liable for any tax if I come back on earnings abroad.