Warning to any noobies working abroad anywhere (eg Zurich belgium amsterdam dubai )

[BlasterBates]

Well if you don't work beyond the 183 days no problem. Beyond that time you need to register your company with the local tax authorities, and you would be subject to local tax rules. In which case the double taxation rules come into play. Under those circumstances you would be well advised to take an accountant's advice as to the best way in which to operate.

In Switzerland you would most likely operate as an employee from the outset, as you can't as easily operate your Ltd company there.

[NotAllThere]

... In switzerland agencies wont allow you to work via LTD company...

Agencies won't allow you to work through your uk ltd company. They're quite happy for you to work through a Swiss ltd company (GmbH).

If you work as an employee of a Swiss company as most contractors do, you have no additional tax to pay in the UK on that income. This is clearly covered in the double taxation treaty...

I understand the double taxation treaty differently, though I'm happy to be wrong. Say I'm UK resident and work in Switzerland from June through to August, and get £50000. For simplicity, let's assume for the past few years a flat uk tax of 30%. If the Swiss rate is 20%, then when I fill in my UK tax return, they'll ask for an additional £5000. If the Swiss rate is 40%, then I'll have nothing further to pay.

The point is, AIUI, dual taxation means you pay the max tax of the two countries.

[YHB]

I thought most of us use UK companies ? No ?

Depends on country, In switzerland its is very unlikely (i work with 10 contractors who are all from various agencies, swiss native and Swiss branches of UK ones eg huxley- checked wasn't just mine and nope, none allow it as getting a permit is a pain + other paperwork/costs they dont want)

[YHB]

Agencies won't allow you to work through your uk ltd company. They're quite happy for you to work through a Swiss ltd company (GmbH).



I understand the double taxation treaty differently, though I'm happy to be wrong. Say I'm UK resident and work in Switzerland from June through to August, and get £50000. For simplicity, let's assume for the past few years a flat uk tax of 30%. If the Swiss rate is 20%, then when I fill in my UK tax return, they'll ask for an additional £5000. If the Swiss rate is 40%, then I'll have nothing further to pay.

The point is, AIUI, dual taxation means you pay the max tax of the two countries.

Yup- and when you compare a swiss rate + flights home + medical + employers & employees deductions, compulsory pension and so on then it is equal to a much lower actual rate when compared to the UK.

My agency didn't tell me, the accountant didnt, Contractor UK's overseas guides didnt.

[YHB]

You mustn't know that many accountants!!

Actually know a lot more than you I'd bet - studied Accountany and many of my peers went onto to take it up who i still socialise with, couldn't stand it myself lol but the knowledge helps.

Unless they have come across it before they dont- 90% or more will never deal with a overseas contractor.


Believe it or not the knowledge of all accountants is not uniform!

[BlasterBates]

Agencies won't allow you to work through your uk ltd company. They're quite happy for you to work through a Swiss ltd company (GmbH).



I understand the double taxation treaty differently, though I'm happy to be wrong. Say I'm UK resident and work in Switzerland from June through to August, and get £50000. For simplicity, let's assume for the past few years a flat uk tax of 30%. If the Swiss rate is 20%, then when I fill in my UK tax return, they'll ask for an additional £5000. If the Swiss rate is 40%, then I'll have nothing further to pay.

The point is, AIUI, dual taxation means you pay the max tax of the two countries.

No for employment income that isn't how it works. That is often misunderstood. For investment income such as dividends then you're probably right.

[BlasterBates]

The reason for the non taxation of employment income is due to an EU directive whereby a resident of one country working in another EU land (and Switzerland has signed up to this) must not be disadvantaged with respect to the residents of the country where that person is working. This of course doesn't apply to investment income, so that is a mudlled free for all.

[Bear]

Actually know a lot more than you I'd bet - studied Accountany and many of my peers went onto to take it up who i still socialise with, couldn't stand it myself lol but the knowledge helps.

Unless they have come across it before they dont- 90% or more will never deal with a overseas contractor.


Believe it or not the knowledge of all accountants is not uniform!

[DiscoStu]

Actually know a lot more than you I'd bet - studied Accountany and many of my peers went onto to take it up who i still socialise with, couldn't stand it myself lol but the knowledge helps.

Unless they have come across it before they dont- 90% or more will never deal with a overseas contractor.


Believe it or not the knowledge of all accountants is not uniform!

I'll take that for a tenner...

Edit: Is your dad bigger than her dad too?

[Bear]

I'll take that for a tenner...

Edit: Is your dad bigger than her dad too?

Boyfriend