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Contracting abroad tax question

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    Contracting abroad tax question

    Does anyone know; if I do a gig for 3 months over in Switzerland on agency payroll,

    Scenario A gig ends, I come back to the UK, and don't have any further contracts in the relevant financial year (not so very unlikely the way things are at the moment)

    Scenario B gig extends or doubles let's say;

    Obviously Swiss tax rates are pretty decent but does anyone know if Gordo will dock me further tax esp. in Scenario A. I'm a bit confused about this one because the overall amount earned for the year will still be relatively low (i.e. 3-month gig would yield approx 20-25k.) but UK tax rates are higher than Swiss and I would be effectively UK resident.

    #2
    nope, but they might try.

    Under the Double Taxation Treat employment income is exempt. But you have to declare it and make clear exactly what it is otherwise they might credit the Swiss tax and tax the difference. I would look up the DTA on the web and quote the paragraph in your tax return.
    I'm alright Jack

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      #3
      Why don't you bill the client from your UK Ltd Company/Umbrella/Financial Management Structure? You can just be seconded to Switzerland by your UK entity. At least then you could claim any tax back.
      If you were placed on a local Swiss payroll you will pay local tax (which is low but depends on which Kanton you are in), local social costs/pension etc.
      You could then lodge a tax return in Switzerland for any overpayments but that would require a local representative which would be firstly, expensive and secondly more hassle that it's worth.

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