RichardA

On the other hand many people happily do work across borders that does not need to be declared to the local country. I do not see a difference between your builder friend coming to do a "one off" couple of weeks' work in France, and being paid in the UK, than a businessman from the UK going to Paris for meetings and working in a French office for a week. He would not be French resident and would not need to declare the work to the French authorities... and besides, they would never know anyway?!! His insurance may need careful checking for work ex UK however. The above is just a personal view, and may well be a load of rubbish! I am not an expert!

<<In addition to this you would be liable for french pension payments that are normally E166 per month however if you are on a very low income you can appeal to pay only the minimum of E60 per month.>> Jo, thanks for that. So if I understand right, the french pension payments would still be almost 2000 euros per year, despite the new law? (I don't think I'd qualify as a very low earner due to my full time job!). I suppose it's better than before however. On another note, would it entitle me and my wife to a Carte Vitale? My full time job is outside France, and in Haute Savoie they don't give you one if you work across the border!  

Will, Thanks. I have an accountant in mind, so I will consult him if I go ahead. Things are still at the "feasibility" stage to determine whether it's worth my while, bearing in mind all the additional administration involved and the fact that I don't expect to make a fortune from the software (it's rather specialist). I'd actually be licensing the software to users, rather than selling it outright. Not sure that makes a difference either. I've been trying to wade through http://mamicroentreprise.free.fr where there's lots of good stuff, although my French does struggle with some of the more technical/legal language! The new "loi Chirac" applicable for new Micro Entreprises created from 2008 (and retrospectively from 2007 apparently) is what's tempting me to proceed. Does anyone know if the capping of charges is just for the first 2 years, or is permanent if the turnover is low enough to benefit?

Just a quickie... does anyone know whether selling (via the Internet) a computer program I've written and developed would classify as "commerciale" or "profession liberales" i.e. BIC or BNC? (If I understand rightly). The income would be around 5000 Euros p.a., maybe a little higher in future years. And if I have a choice, which is the better of the two regimes? I also have a full time salaried job too... if that makes any difference?? Thanks, Richard

Hi all, I was just wondering if anyone knew details had been released about likely cotisation payments for MicroBic etc with relatively low earnings? I am resident in France and already work full time as an employee, but was wanting to do some Internet work on the side for UK customers. A realsitic annual turnover for this extra work would be around 5000 Euros, possibly rising slowly over subsequent years. Obviously under the old scheme the minimum social security payments would have rendered this probably not worth the bother! Does anyone know what my likely cotisation payments would be on a turnover of 5000 Euros? And if this was likely to change (and when) with the supposed new "pro rata" payment regime I've heard about? I was hoping to register the business to commence trading from 1 Jan 2008... Any advice gratefully received! :-) Many thanks, Richard

Just to bring this thread to the fore again... I'm reasonably au fait with PEA's and Assurance Vie now, although as I'm about to invest in one or both would appreciate tips as to who provides the best buys. As background, I'm looking to invest a lump sum and then a regular sum per month for the long term, with no need to draw income for 15-20 years, so I'd be looking to invest in equity "unit trusts". Also, does anyone know how PEP's and PERP's fit into the schem of things?? Thanks, Richard

Or for euros in France, ING Direct do 2.75%. Any better? Richard

Kirstie, If under the double tax agreement your service salary remains taxable in the UK, my understanding is it should be treated pretty much as Ron says i.e. Form 2047, section VII ("Revenus Exonérés pris....") as follows: Column 1- Full name Column 2 -"Royaume Uni" Column 3 - "Salaire" Column 4 - Gross earnings, in € minus N.I. (This should be the same figure as you put in box TI of Section 8 of your blue form 2042).   Column 5 - Total N.I. for the year in €, i.e.  "SECU €....." Totals were carried down to bottom, the rest of the form was left blank and the form was signed and dated as appropriate at the foot of the final page. I'm NOT a tax expert/accountant, but I have a similar situation and that's the way my colleagues advise me it's done! Best of luck, Richard

Thanks Ron, that's a great help. I'll try and compile something to stick in the FAQ for this section when I get time, as I'm sure others will be in the same situation each year. Richard

[quote user="RichardA"] My best guess at entering UK interest would be on form 2047 (definitely pink this year!), section IV, part B: Column 1 = "Royaumi Uni". Column 5 'Total net collected in euros' = Gross amount of UK interest (or is it net UK interest after tax deducted??). Enter the total in box A and carry forwards to form 2042, section 2, box TS. Any UK tax on interest is to be claimed back with a UK personal allowance if applicable or IR form FD5. [/quote] Please, before I finally fill in my tax return and send it off, is this the correct way to declare UK interest, and under column 5 'Total net collected in euros' do I enter gross or net UK interest?? [8-)] Thanks, Richard

Thanks for the replies - I'll just add the UK rental details to form 2047 only then. If they want a 2044 at my local tax office then I'm sure they'll ask for one. [Www] Richard

Pat, I'm getting conflicting advice...  My house is in the UK and therefore taxed in the UK. I have been told by a french tax office to declare it in section VII of form 2047 (revenues exempt in France but to take into account etc). They made no mention of form 2044. Do I need to do form 2044 as well even for a UK property?? Richard

Have you considered an offshore account? Alliance & Leicester offer upto 4.95% on £10,000+, or 2.65% for 5000 euros +. Has anyone found better than this? http://www.alliance-leicester.co.im/Default.aspx?bhcp=1 This is paid tax free, but you will of course have to declare it on your french tax return. As for accounts in France, I have no idea who gives the best rates! ING maybe?? Richard  

Well I'm getting there! I've just received the following reply from infotax-southwest: 1.for a sole trader, with a permanent business in UK, you have to fill in form 2047 4 heading VII  to have the benefit in box TI on form 2042 page 4 point 8 box TI the benefit is not taxable in France, but you have to indicate it 2. for the house in UK the rents are only taxable in UK, you have to fill in form 2047 page 4 heading VII and form 2042 heading 8 box TI and  form 2047 page 1 heading III the country of origin Richard

Kathie, This needs to be an official translation for your bank to accept it. Paying for it to be translated by someone, however qualified, is not sufficient. If I'm correct, this is the subtle difference that is happening here. Contact your bank to find if they have any restrictions on which official translators you need. If you're in the UK then the French embassy/consulate should be able to supply you with the details of an approved translator. Your doctor should not need to sign the French form. It will be stamped and notarised by the official translator. It is not for your bank to translate the document, even if you pay them. It is your responsibility. You need the english document translated and notarised by an official translator, and then you send both these documents to your bank. Once you know the correct procedure, it's actually quite simple! I had to get some documents translated last year when I got married in France. I did not need to have the translated documents in French re-signed by the relevant UK authority. Richard

[quote user="Patf"]I can only answer part of your question about renting out your uk house. You contact the Inland Revenue and ask for a self employed form with the section Land and Properties. You declare the whole amount of rent received. You used to be able to claim as an allowance interest paid on the mortgage but I think this has stopped now. Deduct any other allowances - repairs etc - then pay tax on what is left minus your personal allowance.[/quote] Just to correct this info, I'm 99% sure in the UK you can deduct interest paid on the loan. If you have a repayment mortgage, any capital part of your mortgage payment is not allowable, but the interest element is. That's why having an interest only mortgage is simpler, and the larger it is the more tax efficient it is! By the way - I'm still looking for the correct way to declare my UK rental income on my French tax return! [8-)] Richard

Kathie, Just to back up what Kathy said, you need an official, certified, translation. Your local mairie will have a list of approved translators. You send off your signed english doctor's report to the translator (it costs about 50 euros per document), then you get a official translation back a couple of weeks later with a great big stamp on it (the French like big stamps!), that is acceptable to all French banks/government offices etc.. Your english doctor does not need to sign the official translation. Richard

I'm sorry if it appears as though I wasn't trying hard enough! I spent many hours last night going through multiple threads on the forum trying to find help on the subjects indicated. Whilst a lot it was all very helpful (and much of it from your goodself Ron! [:)] ), I was still a wee bit unsure as to exactly which column on the tax return to enter my figures, and as it's my first return I wanted to do it right! I apologise if it didn't come across that way...I do know I should pay my local tax office a visit, it's just finding the time... Anyway, Gastines, many thanks for the info about form FD5, although I'd already found that, ready to fill in at some point in the near future! Just to let you know I have been trying [;-)]  here's the conclusions I've come to so far! Please put me right if I've made any errors. Official Euro/£ exchange rates for any date I've found are available here. My best guess at entering UK interest would be on form 2047 (definitely pink this year!), section IV, part B: Column 1 = "Royaumi Uni". Column 5 'Total net collected in euros' = Gross amount of UK interest (or is it net UK interest after tax deducted??). Enter the total in box A and carry forwards to form 2042, section 2, box TS. Any UK tax on interest is to be claimed back with a UK personal allowance if applicable or IR form FD5. I think form 2044 is only if you have French rental income? Therefore my UK rental income (actually a loss!) should therefore be declared in form 2047, section VII (carried forwards to form 2042 box TI). Column 4 = gross rent, column 5 = tax paid, and column 6 = my costs and interest payments.Is this correct? I would also guess the small 'business' income would also be entered in form 2047, section VII, gross amount in column 4, tax + NI deductions in column 5. The tricky bit of course is working out UK tax deducted as the UK/French tax years aren't very conveniently arranged to say the least! I know I could go and see an accountant, but his fees would probably wipe out my business' entire profit for the year! Richard

Hi all, I'm just tring to do my first french tax return as a French resident. [8-)]  I receive UK income from 3 sources: bank interest, rental income and a very small business activity carried out in the UK. So far I have forms 2042, 2047 and 3916. I've searched the forum extensively, but found some mixed advice, so any help would be very much appreciated! What I would ideally like is for someone bright out there to tell me in which form and specific box any (or all!) of the following go in: UK interest: Can someone please tell me exactly which boxes to write the relevant figures in. (This is received net of tax, but I know the official way to reclaim the UK tax paid). UK rental income: Again, which form I need and which boxes to put the numbers in. This made a small loss this year after interest and costs. Does that make a difference? UK business: Carried out and taxed in UK, but where would I declare the small profit on my French tax return? Merci beaucoup en avance! [:)] Richard

Ian, Thanks for the reply. It wasn't whether or not to declare it on my French tax return, my query was more about what the best way to do this was? In the UK it went on the 'self-employed' section of the tax return, and just wondered if anyone knew the equivalent way of declaring a very small enterprise such as this? i.e. do I declare it as regular income, or do I use a 'micro-BIC' or something else? I do have a certain amount of expenses I would like to offset against the income if possible.

Hello everyone, I have very recently become resident in France. I have a very minor sideline that brings in currently about £1500 a year. It's selling a software program I've written, and is for UK residents who pay me in £ into a UK bank account. This is currently registered in the UK as a sole trader operating under the Small Earnings Exemption (so no Class 2 National Insurance), as I already pay full UK employees Class 1 NI contributions. As my 'bum' is now located in front of a French internet connection rather than a UK one, what are the requirements for declaring this interest in France, if any? And is there any suitable regime I should use for this (the income is likely to remain relatively minor). I've read a little about Micro-BICs etc but am somewhat confused still! As background, my main employment is in the UK and I pay tax there (commuting back to France for my days off), although I am registered with the Impots in France too as a French resident, although my current French tax liability is very minor. I read somewhere that 'companies' can remain registered in the UK for a year or two before having to rebase in France, although I've no idea if this is applicable. I realise I should enlist the help of a proper accountant, but as it's more of a hobby that seems a little excessive if I can avoid it. Many thanks for any tips you can give me, Richard