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Little job in UK


5-element
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This must have been covered many times in the past, but I just cannot find the definitive answer, please bear with me.

OH has been offered a tiny bit of consultancy work in the UK. This would be paid annually in his UK bank account.

We are both retired and residents in France. He seems to think that he could just declare the annual amount receive on our tax return, and that would be the end of that.

I tell him that it's not possible, and that if he receives monies in the UK, then it means he is working, and has to either set himself up as AE in France or something else, i.e. he has to have some kind of status other than a retired person.

Given that the amount he would receive annually would be below 2,000 pounds, it would not be worth the bother, he might just as well turn down the work.

The trouble is that I am not certain I am right, so my question is: is it possible to receive an annual fee in the UK for services rendered, without having to declare yourself as some kind of a worker in France?

Thank you to anyone who has the definitive answer.

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[quote user="5-element"]

I tell him that it's not possible, and that if he receives monies in the UK, then it means he is working, and has to either set himself up as AE in France or something else, i.e. he has to have some kind of status other than a retired person.

[/quote]That's about the size of it.  However, an AE may be worth it as it's based on turnover so could work even for tiny amounts.  But no, unless he goes to the UK to do the work, then he abides by the rules here with all the boring cr** that involves, afaik.
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Thanks Coops, just as I dreaded then - it seems so ludicrous that I can hardly get my head around it! It is hard to believe that there is really no way around that. There must be people doing that kind of thing with brown envelopes being passed around, or maybe this is a thing of the past.

If he registered as AE, he would also lose his S1 & UK healthcare - plus, the amount of paperwork involved really puts me off, as I would probably be the one having to do most of it - no way do I want that kind of responsibility!

Actually, if he was in the UK for most of it (something to do with attending meetings and doing PR work) could he then declare the 2 grand a year in the UK, and pay UK tax on that? I guess not.

 

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[quote user="5-element"]

Actually, if he was in the UK for most of it (something to do with attending meetings and doing PR work) could he then declare the 2 grand a year in the UK, and pay UK tax on that?

[/quote]Yes, that is my belief. 
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I always thought that this was to do with exactly where the work was being done. So if he is working in the UK then he'll pay tax etc there and then declare on his french return and the amount of tax paid in the UK. He won't pay national insurance payments in the UK as you don't when getting a state pension, so I cannot see how it could affect the S1 either.

5E remember who did this a few years ago, won't they know how it all works out?

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Idun, yes I remember - all I know is the person you have in mind had to pay very high taxes in France for the work done in the UK. It was different insofar as this person had an employer in the UK, whereas my husband would be working freelance.
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When I read that, my immediate  reaction was non, can't be. But yes, as the household income was probably already 'good', I am not surprised.  For your husband it would be quite different, but he wouldn't pay any UK tax on only £2000 a year, but would be taxed in France as it would be added to your other income. Probably worth having though?

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[quote user="cooperlola"][quote user="5-element"]

Actually, if he was in the UK for most of it (something to do with attending meetings and doing PR work) could he then declare the 2 grand a year in the UK, and pay UK tax on that?

[/quote]Yes, that is my belief. [/quote]

Have a look at the Europa website's info on cross-border or migrant workers - it is a specific status with tax and healthcare implications

http://ec.europa.eu/youreurope/citizens/work/cross-border-worker/your-rights/index_en.htm

 

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Given the S1 implications, it might also be an idea to have a chat with the DWP about that - it can't hurt.  But unless it affects one's UK oap, I can't think that a couple of thousand would make a difference.  But I'm still pretty sure that by carrying out the work in the UK, that would do it. 

Will might know for sure - he used to work in the UK and live here and is pretty good at this stuff.[:)]

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I'm sure in  the UK people on state pensions can work and it never affects their pension in any way, apart from income tax.

Call the pensions people in Newcastle about the S1. They are bringers of all news, including 'bad' news for us.

Here is their number

0044 191 2181999

It is the overseas healthcare bit of The Pension Service

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[quote user="idun"]

I'm sure in  the UK people on state pensions can work and it never affects their pension in any way, apart from income tax.

[/quote]This is correct. In the UK you can continue to work after receiving the state pension. The pension counts as part of your taxable income but you do not pay any National Insurance.
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