A subject covered before E forms

[Mark_Trambly]

Hi

Finally getting back into the work situation after the death of my wife from cancer last year and need some help from those well informed.

Basically:

1. I live in France and my only home is here - so my centre of financial interest is in France.

2. I don't work in France but work for a UK based company in the UK as well as engaging in other overseas work for that UK company.

I contacted the UK Inland Revenue who said UK tax and UK NIC apply. He said that I won't then have to pay French NIC as well but will should declare my income to Les Impots on the French tax return to see if any further tax would be due there after any UK tax credit had been applied.

Does anyone have any different experience of this or more info.

I used to be freelance but I decided to go PAYE as I was led to believe that the French tax non salaried people as if they were rock stars.

Thanks folks.

Mark

[Nick Trollope]

Hi

First point, speak to a French Accountant, but you are in a similar situation to my Wife, so here is my take on the matters, having investigated this throroughly;

a) If you are resident in France, you pay tax in France (and social charges), but;

b) They only way you can claim to be resident in France and working in the UK (hence paying UK NI) is if you genuinely commute to the UK to work. Working over the internet/telephone/email, does not mean (to the UK authorities) that you are working in the UK.

c) If you are working in the UK, then you should indeed be paying Tax & NI in the UK, you should also get an E121 (or whatever they call it nowadays), to give you your French health cover.

d) If you are not working in the UK (as opposed to for a UK company), then you should subscribe to the French health, etc system & not pay UK NI - but you should pay the tax!

e) DO NOT under any circumstances get your employer to pay you gross - you will find yourself liable for the employers contributions (about 60%!), yourself.

f) You will need to complete a French tax return (due a couple of weeks ago) and pay any extra tax (although 50% of the French working population pays no tax, as the allowances are high/wages low), whatever your circumstances.

g) I guess you should also register as something, with either the Chambre de Metiers/Commerce/Agriculture/Artists or whatever, depending on what you do. You can't simply "work" here, you must be employed or be "registered" and hence have a SIRET number.

h) Your employer could, if he was willing, set up a branch of their company in France, but they would then be liable for French employers charges - as high as 60%.

 

As I said, it all depends on where you can claim to be working. In my Wife's case, because she only spends 10% of her time in the office in the UK (she has a desk-based job), then she must subscribe to the French system & not pay NI in the UK.

See an accountant!!