Employed in the UK but paying tax in France

[mickey jim]

Hi

I wonder if anyone can help. 
I've been offered a job by a company in the UK, working from my home in France.  I can get paid Gross in the UK and claim it on my French Tax Declaration form to ensure that my taxes are paid in France.  However, I can't seem to find out from anyone roughly what percentage of tax I will pay and will I pay Social Charges.  My husband already has a business in France (Micro Bic) so we are both covered by the social charges incurred from that. I've spoken to both the French Tax office and a French Accountant, both of which were going to look into it, but haven't come back to me yet (I appreciate it's a very busy time for both of them), so, in the meantime, I wondered if anyone else is in this situation and what I'm likely to pay (I'll only be earning about 10K Euros a year).

Thanks

Val

[Will]

You will need to register yourself as a business in France, unless what you do is covered by your husband's registration, in which case you will act as conjoint collaborateurs. Each employment regime will incur its own social charges, from the figures our accountant gives us, on an income of 10,000€ you would pay around 4600€ social charges. Tax is on top of that - it depends entirely on what you are able to claim as expenses, but on that income it is likely to be little or nothing if you have a competent accountant. Again, a good accountant may be able to arrange the figures to minimise your exposure to cotisations - it depends on what you do. The alternative is for your employers to set up a French subsidiary (which, strictly speaking, they should do) which would pay the employer's part of the social charges. But as this would most likely come out of your gross  income you would end up worse off.

[mickey jim]

The Accountant mentioned that there were two ways of setting it up; either set up another business (as adding my salary on to my husband's figures may take him over the threshold), or use the 'pay slip system' whereby I get paid gross from the UK, fill in a french pay slip and pay tax monthly, to avoid having to pay out once a year.  The accountant didn't elaborate on the system, and as I say, I'm waiting for some more info on it.  I've mentioned this to a number of people and they've never heard of it before.  They've all said the same as you, either set up a new business (and pay the extra social charges) or add the salary onto my husband's business (which means only paying 46% social charges on the 48% profit of a Micro Bic - I think!)...

I think I'm talking myself into either not earning more than 27K for the two of us or me not working at all !!!!

[Will]

I've never heard of that either - it amounts to PAYE, which doesn't exist as such in France although anybody can opt for a monthly prelevement for paying taxes. Another thing you might consider is using a portage company, which may or may not be suitable for your position. I have no personal experience, but in effect the portage company receives the money from your employer, and pays you less a percentage for social charges etc. You are still responsible for your own tax, but, as I said, on that amount and with a competent accountant you should pay little or nothing.

It's not disastrous if you go over the micro business threshold - allowances etc under the reel regime can amount to more than the standard percentage of a micro, again it depends on what you do. It is also easier to deal with TVA under a reel regime if you are able to recover that.