DPNI or Ltd company?

I have been offered a part time job by a Swiss company with no UK presence

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I've been offered a part time job with a Swiss company that has no UK presence.  

I also do other work for UK clients to fill in any gaps.  

Is it best for me to accept the Swiss contract under DPNI or as a ltd company and then invoice monthly?  

If DPNI how long does it take on average to set up?



Replies (6)

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By Jane Wanless
10th Jun 2024 14:33

I see you've only joined today - did you read the feature "How to use any answers"?, as it's not aimed at providing advice to the public, but as a discussion forum for accountants. The "How to use" features the advice: “If you intend to plan a course of action based on what you read in here, you should instead be taking professional advice.”

The reason for taking professional advice is to ensure that your full circumstances are taken into account, and the advice is appropriate for you. It also protects you as responders may not have the relevant experience to answer your query, so you could end up with unnecessary tax bills - or worse!

Based on the information provided, it's impossible to advise. The answer depends on numerous other factors - are you a UK or Swiss National (or elsewhere?) What is the level of the Swiss income, and what is the level of your other UK income. Are there pension considerations involved, family circumstances and a host of other issues.

Please do yourself a favour and seek proper professional advice.

Thanks (2)
Replying to janewanless:
By User deleted
10th Jun 2024 17:53

Sorry, I stand corrected and have requested deletion of my account.

Thanks (0)
By kestrepo
10th Jun 2024 15:02

As the other poster has alluded to there are too many variables and additional questions to make an informed decision and you should seek proper professional advice.... but my best guess would be that going the Limited company route would probably be the way forward. I expect that a Limited company will allow you to structure your company to be tax efficient for your given set of circumstances.

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By FactChecker
10th Jun 2024 17:44

I would always avoid DPNI where possible ... it is a nebulous construct that is neither fish nor fowl in terms of interaction with Employment legislation and only exists as a means of allowing you to make payments to HMRC almost as if you were your employer's agent - see https://community.hmrc.gov.uk/customerforums/pt/5c900411-8151-ee11-a81c-... for a couple of examples of the dark alleys it can take you down.

BUT before you dash into the only other alternative you've outlined ... how sure are you (and more importantly how sure is the Swiss employer) that you will not be deemed to be an employee of theirs?
I know nothing of Swiss employment/tax legislation, but the UK isn't the only country that requires the facts to take precedence over what you 'choose' to call the nature of the employment relationship.

See https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye20100 also.

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Replying to FactChecker:
By User deleted
10th Jun 2024 18:00

Thanks for the advice re DPNI. I did call HMRC to try and clarify but it didn't help.

The Swiss employer were saying that I need to pay tax and register there even though I will be living in the UK. I will have to try and find the best solution that works all round.

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Replying to User deleted:
By Paul Crowley
10th Jun 2024 19:07

Do not take tax advice from HMRC.
You need two advisers
One UK and one Swiss
The Swiss do not comply with the tax treaty. They are so used to crooked money that they deduct tax from any money going out of country, and will (hopefully) repay it only when you can prove to them that you declared it and paid tax on it.
They hope that it is not declared and the tax kept.
Tight timescales and different tax years can make this a challenge.

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