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Working in England/Living in France


Liane
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We are moving to Normandy in August this year.   My husband is going to "commute" to the UK in order to continue working for his existing UK employer.   Will he pay french tax because his residence is in France or continue paying UK tax and NI.   If he does continue paying UK NI does this mean that the children and I will not be entitled to medical benefits or child benefits in France?   I am getting more and more confused with all the things that need to be done prior to the move and would be grateful if someone could put me straight.   Many thanks in advance for any light that can be shed on this issue!
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Your husband will retain British tax and social security residence due to his work, as long as the work is carried out in Britain rather than France. The French authorities will in general tax you as a couple rather than individuals, so as you live in France and your husband's dependants are in France, you will be French tax resident too. But tax already paid in Britain will be offset against your French tax liability so if you are not working or do not have other income it is unlikely you will pay any tax in France. You should still fill in the French tax return though because this will establish your French residency and make life easier for you in other respects.

You should get your husband to apply for E109 form for you which will entitle you to the same health benefits that any French resident receives. I do not know whether you will still be able to receive UK child benefit, but rather think you should. No doubt somebody else will be able to tell you.

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[quote user="Will "]

 

. I do not know whether you will still be able to receive UK child benefit, but rather think you should. No doubt somebody else will be able to tell you.

[/quote]

Yes you will.....you need to contact Newcastle on 0044 191 225 1000 and quote your child benefit number and NI number and they will send you a form to fill in. I have mine paid into a UK bank account.

My husband has been commuting from Normandy for nearly 3 years - we fill out a French Tax return each year, but do not pay anymore tax over here, and have Carte Vitales through the E109.

HTH

Regards

Chris

 

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  • 3 weeks later...
Before registering for tax in France I was also commuting. I had a job in the Uk and lived in France. My wife and children also lived in France.

I had to pay Uk tax all the time I was employed there but I only was I the Uk about 30 days per year (the nature of the job).

While in the Uk I paid NI contributions and by getting a form 109 from Newcastle (social services) I was able to get a green card for myself, wife and kids. (it is a reciprocal thing). The form is good for 5 years and the only thing is I have to re-apply each year to the French for a new green card (a formality).

I have spoken to various so called experts who do not even know about this simple reciprocal system ... I advise you contact Newcastle (HQ for social services) and ask them. When I did this I had a green card in about 2 weeks and have used it often over here (in France.

I was not allowed to claim Child benefit by the way the moment the children moved to France. I figured this was unfair.

I am now on UK Incapacity benefit (payable in France) and... Hey presto I am now allowed to claim child benefit......

Hope this is of use to you... I can give you numbers and more info on PM if you are interested.

Dave

PS

I have now had all my UK tax repaid for the last 3 years. DO NOT apply for a rebate under the double tax rules... this will mean you have to pay French Tax... You can apply due to limited days spent in UK. (Of course this wil apply only if you spend less than 90 dyas per year in UK ... or can show that).

Remember... there is more than one way to get UK tax repaid and double taxation way is the worst....

D
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  • 4 weeks later...
Thank you for your post.   My husband has been in touch with the tax office, who have told him that because he is resident in France, but working in England, he will need to be paid gross and declare tax in France.   They are sending him a P85 form to fill in, this doesn't seem to ring true with the information passed to me on the forum, but I assume they know what they are talking about?!   He is going to ring Newcastle regarding the E109 form so that we can get reciprocal benefits and to check we will get child benefit, be it from France or the UK.   Why it has to be so complicated is beyond me, it is not as if we don't want to pay the tax, we just don't know who to pay it to! I will post an outcome at a later date.   But it probably won't be definitive because something else will change in the meantime!
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[quote user="Liane"]Thank you for your post.   My husband has been in touch with the tax office, who have told him that because he is resident in France, but working in England, he will need to be paid gross and declare tax in France.   They are sending him a P85 form to fill in, this doesn't seem to ring true with the information passed to me on the forum, but I assume they know what they are talking about?!   He is going to ring Newcastle regarding the E109 form so that we can get reciprocal benefits and to check we will get child benefit, be it from France or the UK.   Why it has to be so complicated is beyond me, it is not as if we don't want to pay the tax, we just don't know who to pay it to! I will post an outcome at a later date.   But it probably won't be definitive because something else will change in the meantime![/quote]

It just shows you should check with the authorities and not always trust the information given on this forum [:)]

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Yes, I agree, but having said that, as I mentioned before - my husband works in the UK during the week, coming home at week-ends, we don't have another house in the UK, and, for the last 3 years, he has been paying UK tax and NI, and filing a French Tax return with nothing else to pay here................The IR know we live here and all correspondance is sent to our French address, and on the French Tax return we put that Tax is collected through Income Tax - this is what we were told to do by both the UK and the Chief Tax collector here. I think you will be a different Tax Office to us, Liane, we are Carentan whereas you will be St Lo, I would imagine.

Anyway, I would probably query it again!! But if he is still paying NI contributions, you should still be entitled to UK child Benefit, although with 3 children, you would probably get more from France!!!

Regards

Chris.

 

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What Liane has been told by her tax office does not entirely correspond with the Revenue and Customs leaflet IR20 which is normally used to define residency, non-residency and ordinary residence etc, nor with the often-quoted principle that tax is paid in the country where the work is carried out.

It is quite true that information on forums is not to be relied on. But officials can also give misleading information. It is a very complex subject, and there are often other factors as well as those given here. Nevertheless, I agree with ChrisB that it needs to be queried again, because most people's experience is the same as Chris's.

 

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My situation is very similar to your husbands Liane. My husband & I moved to France in November 05 and I am now pregnant, expecting our first child in Jan 07. My husband received his E106 before we left and we now have our carte vitales (myself covered under his social securite number as his conjoint). We also have a mutuelle top up insurance. I remain in the employ of a UK company & continue to pay tax and NI in the UK.When moving I enquired with the DWP if I was entitled to an E106 and (after months of deliberation because I spend 1 wk in France / 1 wk in the UK working via internet - they said that if I was living in the UK my procedures for working wouldnt be any different to if I was in France therefore the french authorities would not be 'interested' in me) it is only now that they have confirmed I am entitled and are to issue me an E106 which will be valid to Nov 2007. The caveat is that I MUST continue to pay Class 1 NI contributions.

This E106 allows me to continue rights that would have been available in the UK hence I will I receive maternity allowance and child beneift from the UK until such times as the E106 runs out. No one has told me contraty advice to this assumption as yet!

Re tax,we have yet to fill in a french tax return (plan to do so next year) therefore will honestly declare what has been paid in the UK. Under the double taxation treaty we will not be taxed again.

Upon the running out of my E106 I will reapply saying that there is no change in my circumstances (if still employed as currently) and ask for extension. If refused, will apply for CMU and start paying circa 8% contribution to france. I believe, although am not sure so advice would be welcomed, that my NI payments to the UK can stop at the time i.e. I can put a case forward so am not paying twice. Could anyone please comment.

I hope this all makes sense. Shout if it doesn't! Can anyone help me in return please and correct any rash asumptions made from my many hours of trawling and conversations with various bodies?!!!

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Frenchplace

Am very interested in more detail of how you got your last 3 yrs tax repaid. I will more than likely fall under the 90 days/yr also (excluding travel days) therfore is '3' years a magical number? Could I reclaim at the end of this tax year for example having only been full time in France since Novemeber? How have you managed to 'allude' paying tax to the french authorities in return for this tax repayment? Can't believe someone somewhere won;t be tracking it down!! Would be great to hear from you.

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  • 11 months later...

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