Switzerland contract

[BoredBloke]

Contract is only as long as the day you arrive, contractor rule number one...

And it is expensive, a friend of mine still has a pic of an £18 Jacket Potato he bought.

Also as I understand it as an effective employee of the payroll company all flights etc come out of your own pocket....

You understand right. All the expenses you incurr, the ones you'd expect your company to pay for (accomodation food travel etc) are all paid for out of your taxed money. When I was in Geneva I was on 900 a day, but the exchange rate was about 1.8 back then. I'm pretty sure that after tax I saw 656 a day. So that would mean your 750 would be about 547. The franc is at 1.47 - when I did my transfers via UBS I'd end up with a rate closer to 1.5 which would put you on 360 a day take home. You will probably lose close to 150 a day in accomodation, food and travel so that would give you a grand total of 210 a day after everything.

[BlasterBates]

You need to take into account additional taxes in the UK

Your take home will be 65-70% (all in, including payroll charges), you will need to consider mandatory health insurance, but that can be done cheaply, I paid 150 CHF per month, just go for the cheapest option, you may be able to get a reduction if you are an "international commuter".

Rents can be found here:
homegate.ch | Immobilien in der Schweiz suchen oder inserieren

If you stay in Glattbrugg, near Zürich airport there are hotels for CHF 80-90 per night eg Hotel Zrich, Freie Zimmer, Hotel Restaurant Bahnhof, 8152 Glattbrugg (conveniently opposite the station) though I would enquire.

Glattbrugg is generally much cheaper than Zürich including eating out, eg local chinese take-away is 15 CHF, local Mexican is CHF 25 for a curry.

The rate to me seems reasonable. Just need to do the sums. In my view with all the costs and hassles involved you would be better off with a 400 quid contract round the corner.

I would only do this if you have some burning desire to go and work in Zürich, not really worth it for the money.

Since the financial crisis and the clamp down on tax havens Zürich isn't what it was and I wouldn't see a bright future there. You'd be more or less stuck in the company you're working for.

[sunflower]

Some companies did reduce rates in Zurich, like Credit Suisse.

Others did not. A lot of customers are paying like CHF 145 per hour for a resource in which case CHF 750 per day is low. It really depends on which area you are in.

Ask the agent for a salary specificaiton to show all your off takes. If the agency does not payroll you, you will have to pay a fee for that with a provider. This can be 5% of your invoice.

If you are going to Zurich, stay out of the UK for a whole tax year or you could be asked to do tax equalisation by the inland revenue. (See one of the other threads on the forum about this).

Get the Halbtaxabo train card if you go which gives you discounts on train travel for a year. Really handy for visiting other places in Switzerland.

You might want to check out living in Zug where Kanton tax is lower.

If you like the gig and the adventure, go for it.

[Scrag Meister]

I working in Basel for a week long code review 20 months ago, short I know but I took a week "off" from my current London IB and doubled my Canary Wharf IB rate. Even after expenses I was quids in. Thanks NAT

But I will say again and this cannot be understated, it is expensive, Lunch time sandwich £7-£9, Thai takeaway for 1 £30, Indian takeaway for 1 £23, pub meal and a pint or 2 £50, transport was like Swiss clockwork weekly ticket included with the hotel room.

If you are looking for a life change/experience then go for it, but make sure your maths are all sorted though.

[dennism]

Some info about cost and claiming expenses

Hi, I've been contracting in Geneva for over a year. Here are some things I've learned that I haven't spotted in this thread:

The good news is you may be able to claim tax deductions for rent and travel expenses, see e.g. this pdf produced by the Canton of Zurich :

Senior staff and specialists resident abroad who have a work permit for at least one year
The following may be deducted:
• Costs for a residence in Switzerland (as far as these do not exceed appropriate limits), if the individual
proves that he has retained his dwelling (apartment or house) abroad for the duration of his stay
in Switzerland;
• Cost of travel between the foreign state of domicile and Switzerland, if the individual proves that he
regularly returns to his foreign domicile on days when he is free.

The bad news is that depending on the length/type of your work permit, you might have trouble arranging a formal apartment rental (through a "régie"), so you'll either have to pay above the odds (+20-30% say) for temp accommodation or arrange a sublet.

Bear in mind also that towards the ends of your Swiss contract you may be faced with looking for work in the UK while you're still in Switzerland, that is if you're looking not to take a break between contracts.

[sunflower]

Hi, I've been contracting in Geneva for over a year. Here are some things I've learned that I haven't spotted in this thread:

The good news is you may be able to claim tax deductions for rent and travel expenses, see e.g. this pdf produced by the Canton of Zurich :



The bad news is that depending on the length/type of your work permit, you might have trouble arranging a formal apartment rental (through a "régie"), so you'll either have to pay above the odds (+20-30% say) for temp accommodation or arrange a sublet.

Bear in mind also that towards the ends of your Swiss contract you may be faced with looking for work in the UK while you're still in Switzerland, that is if you're looking not to take a break between contracts.

I think if you do this that your home country can lay claims to tax equalisation. One of my colleagues did this and got billed for extra tax back home and it was quite a lot.

[dennism]

I think if you do this that your home country can lay claims to tax equalisation. One of my colleagues did this and got billed for extra tax back home and it was quite a lot.

Are you sure there was a causal relationship between your colleague's tax deduction claims and the tax equalisation they were subject to. I believe one is subject to tax equalisation from HMRC if one works in Switzerland for less than one tax year, and it's not clear to me why claiming tax deductions would affect that.

[GreyWolf]

UK tax residency can be more a lot more complicated than just time spent in the UK these days. HMRC are now looking at the degree of connectivity to the UK so even having a property available for use there can be an indicator. The typical weekly or fortnightly commuter whose wife and children stay in the UK family home could be classed as UK resident even though he is well under the 90 days resident rule. At the moment they are going after the big boys with potential back taxes in the millions and not the average contractor but I guess they will get around to them eventually. I know a few people here with a empty house back there who are leaving themselves open to an unpleasant surprise.

Regarding the OP's question, 750 CHF is pretty much what the banks are trying to get away with for a developer these days and it really isn't worth it for anyone who intends keeping one foot in the UK. If you have a real, burning urge to move to Switzerland, cut all connections to the UK and stay here indefinitely then it could be a stepping stone out here and on to something better paid once you are settled. However, with the gradual chipping away at bank secrecy I suspect finance work in Switzerland is not going to be all that great in the future. Maybe Big Pharma will be different.

The other thing to bear in mind is that Swiss rates look okay in Sterling terms at the current exchange rate of 1.48 to the £ but it's not so long ago it was 2.20 to the £. I don't think it will go back there anytime soon but it might. Of course, if you move here permanently then the exchange rate is irrelevant.

[BlasterBates]

The international convention is that your main tax residency is where your home is.

If you are married and return home most weekends then your main residency will be there. That's pretty clear cut actually.

For single people it is less clear, you have to argue one or both tax authorities.

My advice is follow the spirit of the law and say your home is where you really think it is. If you are from the UK and you do a 1 year contract in Switzerland and you come home every weekend because that's where your friends are, assume you are UK tax resident, otherwise HMRC will give you a hard time.

Your tax rate in Switzerland will depend on whether you are fully resident or not. If your main residency is the UK you will pay less tax in Switzerland and extra tax in the UK.

You need to be strict and keep records of all flights home or proof of weekends in Switzerland. Things like cash withdrawals, phone bills, and plane tickets are all good ways to demonstrate your whereabouts.

At some point you have to think about the letter from the tax authority where you are not mainly tax resident, asking you to justify that, and the onus is on you to provide the proof....or just keep it simple and move over there lock stock and barrel. If you give up your house/flat in the UK and simply move to Switzerland with your partner then it's clear cut. You can simply be tax resident in Switzerland.