Contracting in Switzerland - Let the Naive Beware!

[Wanderer]

IAnd the phrase "around the block a bit" can apply to different areas. MF may well have been "around the block a bit" but didn't contribute anything of value other than to presume what I was like to work with and bitch and whine (or as another user here put it "rant") I've been around the block a bit myself (3 years in Saudi, 2 years in Kuwait, a year in Germany, a year in Ireland, six months in the States) - none of it was relevant to what I posted here.

I would have thought that someone like yourself who had worked in a number of countries would be pretty steetwise but to be honest, you come across as a bit of a whiner. I was a little puzzled as to how your Swiss experience sat so much differently to that of other countries. For example:

1.The higher tax (due to not being able to use my own company as in the past without a deposit of 10,000CHF, which I am not prepared to do)

How did you trade in Saudi, Kuwait, Germany, Ireland and USA? Did you use your own company in all of these jurisdictions? I would have thought that they would all be quite different and certainly the tax regimes differ a lot from the very limited amount I know of them. Knowing what your net income has got to be a major part of making the business case for taking on a contract in another country.

2.The compulsory insurances deducted from salary which the UK tax man doesn’t recognise as being eligible towards UK tax

Once again, did this not happen in other countries? For example, how did you get on in the USA where I understand that medical insurance is pretty much compulsory?

3.The high cost of accommodation and living expenses

Maybe it caught you by surprise but I thought it was well known that Switzerland was expensive. Of course, expensive is relative to where you live but there are guides you can get on the net which compare the relative cost of living between your current home city and your target city.

4.The risk of being charged an additional 15% UK tax (on top of the Swiss 25% rate) if I return to the UK in less than“six months and 1 day”

I've never worked in other countries but I understand what a reciprocal tax agreement and non-resident for tax purposes is and I even have a vague idea that there is a magic number at around 183 days (no doubt plus other restrictions) that you have comply with before you become non resident for tax. Did this come as a surprise to you? Surely Saudi would have had a lower tax regime than the UK so you would have been well aware of your resident/non-resident tax status.

5.Terms and conditions which could mean that if I am “let go” within 20 working days I will not be paid for those days

I don''t see that this is anything to do with Switzerland - it's typical agency contract bulltulip. You just tell the agency you aren't having stupid clauses like that in your contract thank you very much. That's a standard part of contract negotiation. But of course you know that already.

6.The high probability that the exchange rate will deteriorate when UK base rates rise in September (as hinted at by the Bank of England), thus making it harder to cover my UK commitments.

And this risk was never a consideration when you were presumably earning/spending Euros/Dollars/Riyals on other contracts? If you have substantial amounts of money to transfer then you could set up a Euro/CHF/GBP account and move your money between them depending on which way you think the market is going.

[BlasterBates]

Having worked in Switzerland for several I don't agree at all that that it's difficult. UK contractors come over all the time.

At the moment it's hey ring a ding so finding a flat has obviously got a lot harder than it was just a few years ago, when it was very easy. But yes you'll need a hotel from day 1, and then find a flat from there, cost 80 CHF a night.

As far as tax and deductibles it compares very favourably especially if you stay those 183 days that the double taxation treaty stipulates and when you are definitely exempt from UK tax. If you really do have a contract shorter than 6 months I disagree about not being exempt from Insurance. If this is a short period I can't imagine that you can't opt for UK National Insurance, but that would mean work for the agency and/or payroll and they probably didn't do that. There is a different tax status for short-term stayers (90 days), and if you can actually prove your residency in the UK surely this would be decsive factor in exempting yourself. I've never heard of any contractor that was less than 6 months so I wouldn't know. I once did a 3 monther in Luxembourg and because I was there 3 months I was exempted Insurances due to the short period. The payroll company didn't really tell me I would be exempted they gave the usual bumf about my net. When I renewed in the new tax year they all kicked in.

[SueEllen]

Quite frankly, the research required isn't something that can be undertaken just on the promise that one MIGHT get an interview. Far too much of it depends on taxation, which appears to be tied to the canton you live in, which can't be determined until you've got accommodation sorted. Knowledge of that requires knowledge of the local market and all takes significant time (especially when you don't speak German).

Like others I found it odd that having worked in different countries one of the first things you didn't check out whether you could use your limited company and an indication of the personal tax rate.

It would take an hour maximum.

And even less time if you used the search facility on here.

Switzerland is one place you won't have trouble finding information about due to the many posters who have worked there.

As a contractor one of your skills should be to be able to find out information quickly.