Organizational questions for: UK contract for work in Switzerland (polish citizen) Organizational questions for: UK contract for work in Switzerland (polish citizen)
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  1. #1

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    Default Organizational questions for: UK contract for work in Switzerland (polish citizen)

    Hi Guys,

    I am Polish citizen I am about to sign a contract with UK employer where the work is to be performed for it's client in Switzerland.

    They want to pay me full amount as contracted against invoice that I issue leaving the responsibility to pay tax in Switzerland for me (contracts says I am to be based in CHF).

    There are couple of questions I have. Basically I need to know how to organize that all.

    1. Do I have to open a company in Switzerland to issue an invoice?
    2. How do I go about paying the tax actually? Should I take an accountant?
    3. When registering do I register as self-employed?
    4. Do I need visa for 5 month long contract?

    Please share your knowledge and experiences! I'd appreciate that.

    Regards,
    W

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    You might want to ask on englishforum.ch

    1. Do I have to open a company in Switzerland to issue an invoice?
    You can, but you need 20'000CHF to invest in your company and it costs about 3'000CHF to set up. You can't be self-employed working for a single employer. Your only viable solution is to go through a payroll company. rmit.ch, hays.ch...

    2. How do I go about paying the tax actually? Should I take an accountant?
    Go through a payroll company, they will perforce deal with tax etc. - which normally is also a recruitment agency (as is your "employer" in the UK). You should be able to get them to do it for around 10% of your fee.

    3. When registering do I register as self-employed?
    No, you'll be an employee of the payroll company.

    4. Do I need visa for 5 month long contract?

    No, you are an EU citizen. When you arrive, you register at the town hall of the community you're living in. You've three months from then to find work. As soon as you've got evidence that you're working for the payroll company, you go to the town hall again, and show them your contract. Then you apply for a work permit. You'll probably get a temporary L-permit.

    Switzerland is an expensive place. The payroll company will take their cut from your fee. Furthermore, all the employment expenses come out of your fee - e.g. employer social contributions, holiday pay, sickness insurance. You'll be taxed at source, based on your monthly income. Get a breakdown of pay from the payroll company so you know your net income. Consider very carefully whether it is enough.
    Boomers tend to believe in “freedom of speech”, which is a fascist concept used to spread hateful ideas.Given that hate speech is not possible without free speech, any defence of free speech is a form of hate speech. - Titania McGrath

  3. #3

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    Quote Originally Posted by NotAllThere View Post
    You might want to ask on englishforum.ch

    1. Do I have to open a company in Switzerland to issue an invoice?
    You can, but you need 20'000CHF to invest in your company and it costs about 3'000CHF to set up. You can't be self-employed working for a single employer. Your only viable solution is to go through a payroll company. rmit.ch, hays.ch...

    2. How do I go about paying the tax actually? Should I take an accountant?
    Go through a payroll company, they will perforce deal with tax etc. - which normally is also a recruitment agency (as is your "employer" in the UK). You should be able to get them to do it for around 10% of your fee.

    3. When registering do I register as self-employed?
    No, you'll be an employee of the payroll company.

    4. Do I need visa for 5 month long contract?

    No, you are an EU citizen. When you arrive, you register at the town hall of the community you're living in. You've three months from then to find work. As soon as you've got evidence that you're working for the payroll company, you go to the town hall again, and show them your contract. Then you apply for a work permit. You'll probably get a temporary L-permit.

    Switzerland is an expensive place. The payroll company will take their cut from your fee. Furthermore, all the employment expenses come out of your fee - e.g. employer social contributions, holiday pay, sickness insurance. You'll be taxed at source, based on your monthly income. Get a breakdown of pay from the payroll company so you know your net income. Consider very carefully whether it is enough.
    Also, you will be expected to pay for your health insurance (which is mandatory as I remember ) so you will have to factor that in.

  4. #4

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    Good point. Just got my renewal through, and the basic will be around 400CHF a month, if you have the highest excess.
    Boomers tend to believe in “freedom of speech”, which is a fascist concept used to spread hateful ideas.Given that hate speech is not possible without free speech, any defence of free speech is a form of hate speech. - Titania McGrath

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    Thanks for your replies. I aw aware of insurance etc. My major concer is how to pay tax. Why do you recommend payroll company? Can't I do it myslef? 1/10 is quite a lot to give away for such service in situation where they had not helped me in anything.

    I know more at this point. UK company I work for sent letter of assignment to relevnat government office indicating Swiss company. Does it change anything?

    The weird thing is the letter of assignment is for 3 months and contract with UK company is for 5 months. Whan can be that for?

    Regards,
    W
    Last edited by VitGryfny; 26th October 2018 at 10:37.

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    Quote Originally Posted by VitGryfny View Post
    Thanks for your replies. I aw aware of insurance etc. My major concer is how to pay tax. Why do you recommend payroll company? Can't I do it myslef? 1/10 is quite a lot to give away for such service in situation where they had not helped me in anything.

    I know more at this point. UK company I work for sent letter of assignment to relevnat government office indicating Swiss company. Does it change anything?

    The weird thing is the letter of assignment is for 3 months and contract with UK company is for 5 months. Whan can be that for?

    Regards,
    W
    I think that you have had all the answers to your questions, already?

    "Giving away" 10% is the least of your concerns. You can do anything yourself, if you have the expertise.

    Knowing the cost of everything, and the value of nothing is the mantra of the deluded.
    I was an IPSE Consultative Council Member, until the BoD abolished it. I am not an IPSE Member, since they have no longer have any relevance to me, as an IT Contractor. Read my lips...I recommend QDOS for ALL your Insurance requirements (Contact me for a referral code).

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    Quote Originally Posted by Scruff View Post
    I think that you have had all the answers to your questions, already?

    "Giving away" 10% is the least of your concerns. You can do anything yourself, if you have the expertise.

    Knowing the cost of everything, and the value of nothing is the mantra of the deluded.

    Thanks Scruff and thanks all! I will contact payroll company then to get some details.

    Cheers,
    W

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    Quote Originally Posted by VitGryfny View Post
    Thanks for your replies. I aw aware of insurance etc. My major concer is how to pay tax. Why do you recommend payroll company? Can't I do it myslef?
    You cannot be self employed. You must have an employer. The only exception to this is you're working for less than 3 months in a calendar year. (Quite a few unskilled people come here for 3 months a year for low-level jobs, earning enough to live in their home country quite well for the rest of the year).

    See here: Notification procedure for short-term work in Switzerland

    I know more at this point. UK company I work for sent letter of assignment to relevnat government office indicating Swiss company. Does it change anything?

    The weird thing is the letter of assignment is for 3 months and contract with UK company is for 5 months. Whan can be that for?
    This is beginning to sound a bit dodgy. It seems they're going the approach in the link above. But they're saying it's a 5 month contract. What will you do the other 2 months? You must clarify that.

    If you continue to work in Switzerland outside the allowed time, without a proper work permit (L or B), there are risks of deportation and heavy fines and being officially banned from the country for up to ten years (Schengen zone notwithstanding - but it will prevent you ever getting a work permit here).

    You can only get a work permit issued if you have a contract of employment.
    Boomers tend to believe in “freedom of speech”, which is a fascist concept used to spread hateful ideas.Given that hate speech is not possible without free speech, any defence of free speech is a form of hate speech. - Titania McGrath

  9. #9

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    Quote Originally Posted by NotAllThere View Post

    This is beginning to sound a bit dodgy. It seems they're going the approach in the link above. But they're saying it's a 5 month contract. What will you do the other 2 months? You must clarify that.
    From the same site:

    Nationals of an EU-27/EFTA state in employment not exceeding three months do not need a work permit; however, commencement of such employment is subject to online notification by the Swiss employer.

    So I guess a quick dodge to get the OP on site

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