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Where Taxpayers and Advisers Meet

Working for a foreign company

Yuna
Posts: 4
Joined: Tue Feb 12, 2019 8:24 am

Working for a foreign company

Postby Yuna » Tue Feb 12, 2019 8:36 am

Good morning,

I will try to explain my situation which appears to be a bit tricky after some research online.

I'm a French citizen who will be living in the UK again in a few months (after leaving for less than 2 years) and in the process of being employed by a Swiss company.

My questions are, as the Swiss company wants to hire me according to UK employment rules, how do I have to pay my taxes? How about NI? And for the Swiss company, how do they employ me? Do they have to pay any kind of taxes or should I pay everything? I'm sorry if it might sound a little silly, but I have no idea how it could work :?:

I've been talking to my new (future) employer, and this is new to him as well. He's searching how to do it with both our interests in mind.

Thanks in advance for your help.

Best,

Yuna

darthblingbling
Posts: 130
Joined: Wed Aug 02, 2017 9:09 pm

Re: Working for a foreign company

Postby darthblingbling » Tue Feb 12, 2019 9:11 am

Depends on whether the the employer has a presence in the UK or not.

It's not a daft question as it may get tricky.

http://www.hmrc.gov.uk/gds/nic/work/embassy.htm

Likely (assuming your employer has no presence in the UK) you may need to set up a DCNI scheme with HMRC to pay primary Class 1 NI. Tax will be collected via self assessment.

Yuna
Posts: 4
Joined: Tue Feb 12, 2019 8:24 am

Re: Working for a foreign company

Postby Yuna » Tue Feb 12, 2019 9:14 am

Yes, indeed it does not have a presence in the UK.

Thank you for your reply, it really helps! :D

darthblingbling
Posts: 130
Joined: Wed Aug 02, 2017 9:09 pm

Re: Working for a foreign company

Postby darthblingbling » Tue Feb 12, 2019 9:15 am

Actually having re-read your post, it may be likely that your employer does have a presence in the UK by virtue of the employer being based in Switzerland.

They will be responsible for withholding and paying PAYE and Class 1 NI.

Yuna
Posts: 4
Joined: Tue Feb 12, 2019 8:24 am

Re: Working for a foreign company

Postby Yuna » Tue Feb 12, 2019 9:19 am

Is there a way to find out?

It might be easier this way.

etf
Posts: 547
Joined: Mon Nov 02, 2009 5:25 pm

Re: Working for a foreign company

Postby etf » Tue Feb 12, 2019 9:36 am

I've copied below a response used on a similar post (Switzerland is treated as part of Europe for social security purposes):


Up until 30 April 2010, where an employer was neither resident, nor had a place of business in the UK, payment of employer NIC contributions could not normally be enforced, unless HMRC successfully argued that the overseas employer had a UK place of business/or the host employer rules should be applied.

However, from 1 May 2010, an employer in another European Union (EU) Member State, with employees in the UK's National Insurance system is treated as having a place of business and registered in the UK for National Insurance purposes and has to pay secondary National Insurance and deduct contributions from the employees.

It will therefore be advisable for your employer to contact HMRC and set-up a National Insurance only scheme

Yuna
Posts: 4
Joined: Tue Feb 12, 2019 8:24 am

Re: Working for a foreign company

Postby Yuna » Tue Feb 12, 2019 9:40 am

Thank you so much for your help! I will advise my future employer so that he can take measures.

Have a great day! :D


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