Personal income tax and domicile - Where is tax due?
Discussion
I’m struggling to work this one out and am hoping someone here can advise what the situation is as I’m stuck!
My wife, son and I are all UK citizens but Swiss residents, we live in Switzerland and I’m employed and paid by a Swiss company, so I pay Swiss tax. My wife doesn’t work so pays no tax, all simple so far.
She now has an opportunity to do some work for a UK company, their office is in the UK and she would be working for a UK registered business, and paid by a UK Ltd company, but she would be working remotely from Switzerland (working from home, basically) with occasional trips back to the UK office.
Based on the facts above where would tax be due? Is it UK because that’s where the work is effectively being done and paid for, or is it Switzerland because that’s where she would be physically located and resident most of the time?
Thanks!
My wife, son and I are all UK citizens but Swiss residents, we live in Switzerland and I’m employed and paid by a Swiss company, so I pay Swiss tax. My wife doesn’t work so pays no tax, all simple so far.
She now has an opportunity to do some work for a UK company, their office is in the UK and she would be working for a UK registered business, and paid by a UK Ltd company, but she would be working remotely from Switzerland (working from home, basically) with occasional trips back to the UK office.
Based on the facts above where would tax be due? Is it UK because that’s where the work is effectively being done and paid for, or is it Switzerland because that’s where she would be physically located and resident most of the time?
Thanks!
She would be liable to Swiss tax - not UK tax as she is permanently resident in Switzerland.
She would have to be careful about any periods she stays in the UK as their are residency tests based on the number of days spent in the UK which are quite complex.
If she stayed too long in the UK, she could find herself liable to UK tax as well as Swiss tax.
She would have to be careful about any periods she stays in the UK as their are residency tests based on the number of days spent in the UK which are quite complex.
If she stayed too long in the UK, she could find herself liable to UK tax as well as Swiss tax.
Edited by Eric Mc on Wednesday 8th April 09:21
Thanks Eric, that's clear then.
I was hoping it would be UK tax, as she would only be working part time and would probably fall almost entirely within her personal allowance. If it's Swiss tax then it causes issues because I get various allowances as a result of being the sole worker in the household and earning p/t UK money it probably isn't going to be worth doing.
I guess I need to wade through the Canton of Zürich's hugely complex tax legislation to see where we stand.
I don't think we will have a problem on the residency side, as she will spend somewhere between 30 and 60 days a year in England and the rest of the time in CH (but please correct me if I'm wrong!)
I was hoping it would be UK tax, as she would only be working part time and would probably fall almost entirely within her personal allowance. If it's Swiss tax then it causes issues because I get various allowances as a result of being the sole worker in the household and earning p/t UK money it probably isn't going to be worth doing.
I guess I need to wade through the Canton of Zürich's hugely complex tax legislation to see where we stand.
I don't think we will have a problem on the residency side, as she will spend somewhere between 30 and 60 days a year in England and the rest of the time in CH (but please correct me if I'm wrong!)
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