swiss residency rules different from UK
You need swiss tax advice as I have worked in switzerland on 2 occasions. The 183 day rule doesn't seem to apply in Switzerland and unless you earn over a certain amount you will not even be sent a tax return from the swiss authorities. I was sent a small tax refund without even completing a tax return. My case may be different as I am applying the Belgian-Swiss double taxation agreement.
You most likely should declare your UK Income plus Swiss income
less (expenses minus the swiss allowance of CHF 1500 per month)
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Reply to: UK and foreign tax while working abroad
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Previously on "UK and foreign tax while working abroad"
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If you pay yourself from your UK Ltd, the question is where that will be taxed. If taxed in the UK under UK rules, won't be taxed again in Switzerland. If you are non-resident in the UK it will be taxed in Switzerland. It's generally only taxed once, though there are exceptions. It will also depend on your main residency as to how it might be taxed.
If for example it is taxable in UK, which you could demonstrate with a plane ticket and a few days in the UK to "work" you would take advantage of your UK tax free allowance. However it is possible that the Swiss may tax some of your other income at a slightly higher rate. You would have to declare it in Switzerland though it wouldn't be taxed again. But they might then slap a higher rate of wealth tax or on interest and dividends in Switzerland for example.
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If you work for more that 180 days a year in CH, then you have to pay tax in CH. If you work less that 180 days a year abroad, in theory you should claim tax refund in CH and pay all of your taxes in the UK. In theory because in practice I've seen people claiming tax refund in Europe and not paying anything (and even claiming JSA) in the UK.
Source: the Inland revenue a couple of months ago, I am not sure if things have changed by now
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UK and foreign tax while working abroad
Hey guys,
Quick stupid thought.
If I'm working in say Switzerland (not through my LTD), paying Swiss Tax (UK has double taxation with CH yea?). Do I lose my UK tax allowances?
Could I for instance pay myself from my UK LTD (from warchest), and then be getting payed in Switzerland too? Or do I lose some allowances by being out of the country? I can't imagine so?
This would mean I could pay dividends up to the higher rate from my warchest...while continuing to earn decent rates in CH?Tags: None
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