• 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!

Swiss startup - first UK hire, what to do ?

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Swiss startup - first UK hire, what to do ?

    I have been in discussions with a swiss startup about a role. They wanted me to relocate but I want to stay in the UK and they have said they would be happy with remote but they are unsure about contract options. They have no HR/payroll department. They have asked me to look into options. The options they said they were aware of were them using a "wage portage" company, which I think seems to translate to an umbrella? They also suggested potentially a swiss contract with residency etc. but this would require getting an apartment over there and being there some days per month and I think this one seems very complicated tax wise?

    I wanted to know if anyone has any words of advice or have worked remotely for a swiss company before and what your set up is? I have been a UK contractor in 2014-2017 via a ltd set up (company now closed) is it an option to just set up another company and bill them? any ideas on where to start?

    Thanks!!


    #2
    To be honest I'd be walking away from this just because it's a start up without all the other complexities. We've endless threads of people trying to engage with start ups but ending up not being paid. Most start up related threads we have are how does the OP get paid money they are owed. We've had plenty about equity and not of one of them worked out either.

    Is there something special about this that makes it worth the risk to you above and beyond any standard gig? Are you in a position you can write off any monies you worked for but don't get paid?
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      Originally posted by 3bcourt View Post
      They also suggested potentially a swiss contract with residency etc. but this would require getting an apartment over there and being there some days per month and I think this one seems very complicated tax wise?

      I wanted to know if anyone has any words of advice or have worked remotely for a swiss company before and what your set up is? I have been a UK contractor in 2014-2017 via a ltd set up (company now closed) is it an option to just set up another company and bill them? any ideas on where to start?
      I think your options are to come to Switzerland properly if you like Lakes and mountains. You can work through an umbrella and if you choose the right canton and tell them you’re an atheist then the tax isn’t too bad.

      Otherwise if they will do you a remote outside IR35 one (i.e. that stupid contract with all the weird conditions) then it could be done from the UK.

      good luck!

      Comment


        #4
        Originally posted by hugebrain View Post
        tell them you’re an atheist then the tax isn’t too bad.
        It's sufficient to say that you are "without confession" - i.e. not an adherent to a state church.

        From the Swiss company perspective, their best bet if you won't move is for a UK ltd. co to invoice them - i.e. your ltd. co. They cannot take you on as an employee if you don't live in Switzerland, unless they have a UK branch (I assume as a startup they don't). On your side though, you must ensure that the contract does not fall foul of IR35 - the liability is yours.

        There are some types of data that cannot be worked on outside of Switzerland - you need to be aware of that.

        If you live partly in the UK and partly in Switzerland, you will be taxed in both countries, but can offset the tax paid in one against another. It is complicated. You can visit Switzerland for a short time each year without becoming liable. If you're registered though, you pay tax there - and yes you need an address.

        If you don't have a Swiss or EU passport, you cannot just go and work. The Swiss company must apply for a work permit for you. There are quotas, and they need to be able to demonstrate they couldn't get anyone with locally or in the EU.

        People who hire domestic cleaners must run payroll for them, so it really isn't difficult. My wife used to tutor 2 hours a week, and had a payslip and yearly summary (think P11) produced by the tutee's mum. For a small number of employees the startup should do it themselves. It's not hard to do, but their seeming lack of knowledge (or ability to find out) would be a red flag for me.

        Down with racism. Long live miscegenation!

        Comment


          #5
          Just bear in mind that Kanton Schwyz near Zurich will charge a tax rate of 10% on income of 200K CHF which means a massive left over disposable allowance

          Before Covid there were regulars who would commute Monday to Friday and I suspect a lot of people stayed in the UK but were on swiss payroll and swiss tax

          Honestly if you can get swiss payrolled the apartment (ie postbox) is the least of your concerns - There are no borders between France, Germany and Italy so no one will count the number of days you actually are in the flat

          but financially it will be massively benefical

          Comment


            #6
            Finally if you do decide to contract remember that swiss is expensive and 1200 CHF AKA 1000 GBP a day is normal and reasonable to charge

            Good luck

            Comment


              #7
              If you do stay in the UK, and still wish to take this on but UK based, we can accept funds in CHF if that helps

              Comment


                #8
                Originally posted by NowPermOutsideUK View Post
                Just bear in mind that Kanton Schwyz near Zurich will charge a tax rate of 10% on income of 200K CHF
                More like 14%.

                Down with racism. Long live miscegenation!

                Comment


                  #9
                  Originally posted by lucyclarityumbrella View Post
                  If you do stay in the UK, and still wish to take this on but UK based, we can accept funds in CHF if that helps
                  You'll accept funds in bleedin cup cakes and gin you will.
                  'CUK forum personality of 2011 - Winner - Yes really!!!!

                  Comment

                  Working...
                  X