Brilliant, thanks very much everyone! That really cleared it up in my head!!
Have an amazing day!
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "Does Double taxation take you into the next tax bracket?"
Collapse
-
Good point about compulsory deductions that are not "tax", you don't get a credit for them.
Also, DYOR before making any assumptions about what you might claim as expenses. Remember that in Switzerland you will have to be an employee. Therefore when HMRC calculate your UK tax liability, they will not let you claim travelling or subsistence, because an employee can't claim for travel from home to place of work.
Leave a comment:
-
Originally posted by Ignis Fatuus View Postthe UK gives you a credit against UK tax = the tax that you actually paid in Switzerland.
Leave a comment:
-
Originally posted by Mehmeh View PostHi everybody!!!
About to do some work in Switzerland,
Lets say I'm currently just under the 40% tax bracket in the uk for the tax year.. If I earn (and pay tax) in another country, and double taxation is used so I don't need to pay any extra tax in the UK (just to keep it simple).
Will that effect my tax rate or allowances in the UK at all?
Thanks just trying to get my head around all this new stuff.
That is why they do it the way they do: your Swiss income is also taxable (theoretically) in the UK, but then the UK gives you a credit against UK tax = the tax that you actually paid in Switzerland.
Result: for the UK, you are in a tax band that fits your total earnings, nit just your UK earnings.
Leave a comment:
-
If your main tax residence is in the UK then yes it does.
I would strongly advise you enquire with in an accountant as to whether you pay additional tax in the UK. People on this forum are not tax experts and don´t necessarily trust opinions which are not paid for, just from the tops of their heads on the phone. I would pay for an accountant to clarify this specific point. It really will be worth your while. Cross border tax is complicated and if you know now you can potentially save a lot of money by adjusting your contract i.e. extending it by a month or two, or not returning home or simply knowing what proof the authoriities require about where your main residency is.
Try and collect proof of where you are and how long you spend in the UK and Switzerland. Whereever your main tax residence is will reduce your tax burden in the other country. It doesn´t matter whethere that is Switzerland or the UK, the other country will require proof that you are mainly tax resident elsewhere, and the 183 day rule is only one factor, it isn´t even the main factor once you are to-ong and fro-ing. The main factor is where your family is, if you´re single then it´s complicated.
If you just leave it to the tax authirities they will both assume you are mainly tax resident in their country, and you will generally pay more tax. Obviously the UK authorities will credit Swiss tax paid, but for example if you have income from bank accounts, or dividends this maybe taxed twice.
So make sure you know which your main tax residency is and collect proof to claim tax back from the other country, or at least let then know when you hand in your tax return.
Leave a comment:
-
Does Double taxation take you into the next tax bracket?
Hi everybody!!!
About to do some work in Switzerland,
Lets say I'm currently just under the 40% tax bracket in the uk for the tax year.. If I earn (and pay tax) in another country, and double taxation is used so I don't need to pay any extra tax in the UK (just to keep it simple).
Will that effect my tax rate or allowances in the UK at all?
Thanks just trying to get my head around all this new stuff.Tags: None
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: