IR35 not a worry when providing services for foreign company?

[SueEllen]

Just read through this thread and it's very interesting, would the outcome be any different if it was say a 3 month contract with the money paid to the UK Ltd company but the contractor commuting weekly to the office in Zurich?

You risk being in both the Swiss and UK tax systems.

I can't be bothered to search for the information for you but some countries, and I'm sure Switzerland is one of them, you cannot use your limited company as you risk their taxman chasing you to the UK and HMRC being helpful.

[The Spartan]

Guess this one is going to go down to the wire then, because of the new Statutory Residence Test from the 5th April I am more or less now classed as a UK resident (following the criteria that in the previous 3 tax years I was in UK 2 out of 3 the third being in Switzerland). The company need me to stay on but I've explained that the more they pay me the more I'll owe Hector so they're looking at alternative solutions such as working for the UK subsidiary but being posted abroad. Apparently I don't need a work permit if I work in Switzerland for less than 90 working days per calendar year Registration procedure all very confusing I'm bound to get shafted.

[stek]

IR35 not a worry when providing services for foreign company?

I think you do need a work permit mate - albeit an automatic one, the 90 day thing wrt to CH is to do with not needing a visa to stay without a job. CH isn't EU, just adopts the directive and interprets it to suit!

[The Spartan]

I think you do need a work permit mate - albeit an automatic one, the 90 day thing wrt to CH is to do with not needing a visa to stay without a job. CH isn't EU, just adopts the directive and interprets it to suit!

Thanks Stek I thought as much, I'll tell them they'll have to let me work remotely in that case I'm not risking getting hauled over the coals by two tax authorities

[BlasterBates]

Guess this one is going to go down to the wire then, because of the new Statutory Residence Test from the 5th April I am more or less now classed as a UK resident (following the criteria that in the previous 3 tax years I was in UK 2 out of 3 the third being in Switzerland). The company need me to stay on but I've explained that the more they pay me the more I'll owe Hector so they're looking at alternative solutions such as working for the UK subsidiary but being posted abroad. Apparently I don't need a work permit if I work in Switzerland for less than 90 working days per calendar year Registration procedure all very confusing I'm bound to get shafted.

Yes you need to be careful here, the Swiss tax year is the calendar year so you wouldn´t be able to claim only 90 days if you´ve already been their since the beginning of the year.

[The Spartan]

Yes you need to be careful here, the Swiss tax year is the calendar year so you wouldn´t be able to claim only 90 days if you´ve already been their since the beginning of the year.

Which I have been so they're grasping at straws, thanks BB looks like I'm homeward bound. This is why I love CUK, I wonder how many other people are going to be caught by the new Statutory Residence Test having worked abroad for the previous year?

[BlasterBates]

Which I have been so they're grasping at straws, thanks BB looks like I'm homeward bound. This is why I love CUK, I wonder how many other people are going to be caught by the new Statutory Residence Test having worked abroad for the previous year?

Perhaps you could offer working remote in the UK with the odd visit. That would be perfectly above board.

Alternatively accept the Swiss taxing you and then an extra swipe from HMRC. Since Swiss tax rates are low would this be any worse than simply taxing it in the UK?

[The Spartan]

Perhaps you could offer working remote in the UK with the odd visit. That would be perfectly above board.

Alternatively accept the Swiss taxing you and then an extra swipe from HMRC. Since Swiss tax rates are low would this be any worse than simply taxing it in the UK?

Unfortunately there's a huge disparity it the way dual taxation works or it could be how I understand it, here I lose 20-30% of what I earn at source (tax, social security, fees etc) as I have to use a payroll company. I'm on the B tariff here so 5.65% tax on my earnings HMRC will then apply a further 14.35% up to 42k GBP and then 34.35% on anything over that which would definitely screw me up for the rest of the tax year when I return to the UK.

Feel free to correct me that's just my basic understanding of it all.