I have two questions. First, if you are self employed,

Hi

Thanks for your response

I am afraid the information provided by this Swiss specialist is incorrect.

Whether there is at this time a physical "branch" in the UK, makes no difference, as soon as an individual undertakes work in the UK, they in essence become the branch and are responsible for the tax on others. (And as they are in essence the offshoot branch from a business they own in Switzerland further supports this)

The status of the individual providing the services also has no bearing, its a matter of law, as to the correct interpretation of employment status.

The teachers will not be classed as self employed, as they are provided with the customers who attend, will not be able to make a profit or a loss of their "fee" for undertaking the tuition, and I imagine deliver their tuition through a set format as dictated to by the company, and may even use the businesses tools to deliver these.

So they are employees and should be paid under PAYE and the individual who is setting this up, will need also to set themselves up as self employed - (or in fact may be considered themselves an "employee" of the Swiss company who is undertaking work within the UK, and if this is the case, they woo will need to operate PAYE on their own salary but this is dependent on whether they are in essence the equivalent of a director of a limited company, and then should continue to work under this basis)

But there is no avoiding UK tax, and I am shocked that this has been suggested as cleaely they kjnow nothing of UK tax law.

However I will state that the expenses incurred (salary and premises and materials etc) will be deducted from the business run in Switzerland, and any tax suffered in the UK on the individual who will come to the UK, will be available to reduce his own tax liability, through the Swiss tax regime (as we have a double taxation agreement with Switzerland) so they do not suffer tax twice on the same income.

Thanks

Sam