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Cross Channel commuting - Daily Telegraph 2 August 2008


Will
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Hi

I am currently doing research into this issue. My wife is intending to operate as a self employed lecturer in the UK but only for around 80 days per year. I am registered here. We would like to proceed in this way, actually we probably have to - but do not want to pay twice.

I am aware from reading this thread and others that every situation is different and it is a 'minefield' but would welcome any comments.

Furthermore does anyone know where we can get some definitive advice about our personal circumstances.

Many thanks

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Tax-wise your situation should be straightforward. You continue as you are with your French business. Because your wife carries out the work in UK, she will pay tax there (via self-assessment, because she is self-employed). The joint income is declared in France, with your wife's income going in the 'earned overseas and already taxed' box.

Social security may be a little more difficult. Because your wife (presumably) is in UK less than 183 days per year the NI people are not likely to accept contributions there. Because she spends most of her time in France she will be expected to have French health etc cover. Whether or not she will be able to 'piggy back' on to your social security status in view of the fact that she is separately employed is the question that needs to be answered. If she was working full time she would certainly need to arrange cover in her own right, but because she is not working many hours you may be able to include her as a dependant. She could well benefit from the 'autoentrepreneur' status, but that may mean her, in effect, paying tax twice over, so she would probably be better off going for one of the micro regimes.

Getting a definitive answer is likely to prove difficult, as UK tax offices are not able to to advise on French tax matters, and vice versa, and likewise tax offices in UK or France and not able to give guidance on social security matters, and vice versa. You need to ask a specialist accountant who is used to cross-border working.

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Thanks very much for your response Will.

I need to track down an international accountant.

We had spoken to a French accountant who seemed to be saying that if we declare my wifes earnings and tax paid on my return then the authorities here would reimburse what would effectively have been an overpayment. I cannot believe that this could be so, hence my continual digging.

She is already on my helathcover here so one would assume that can be left alone.

If anybody knows of a specialist accounting company that would be very useful.

Thanks again Will.

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