tax for employed people in France

[001helen]

Hi

i am trying to tie up employment with a British company that will allow me to work from home in France once move is permanent (as an actual employee rather than a freelance). Should this come off, can a british company simple employ what will be a french resident in this way and can that person just pay into french tax system as a 'normal' employee would? i know french taxes are high, but setting up as self employed seems to be a very off putting process! Any advice gratefully received.

[val2]

This could be a bit complicated and I would suggest that you contact the local Tax Authorities, URSSAF and CPAM to find out their requirements in this regarding your cotisations. You don't want to end up with enormous demands and try and explain your way out as ignorance does not count in France where the authorities are concerned.

[lodgema]

Hi

I moved to France some 18 months ago whilst still in the employ of a UK company - I am still working for that company.

As a permanent resident of France (i.e. your main residence being based in France) you are required to pay tax in France. I left the UK tax system as at the date of my departure from the UK (20th August 2001). In February 2002 I visited my local tax office, and after much confusion and hilarity on the part of the tax officer involved we managed to get things sorted out. As such I received my first tax bill in September last year for the period 20th August to 31st December 2001.

What you will require to do each year is declare your earnings from your employment in the UK, (along with all other sources of income as you are taxed on your worldwide income in France!). If, like me, you will be paid in Sterling this will be converted to Euros by the tax office using an official rate of exchange provided by the tax authorities.

In terms of social security you will not receive the same benefits as enjoyed in the UK. You will be legally required to apply for medical cover under the french social security system for which you will have to pay 8% of your gross income. You can only receive full cover if you are employed by a french company, or you are self-employed. However this relates to around 35% of your earnings, although if employed by a french company the majority is paid by the company leaving you with around 9% to pay (similar to the UK). If self-employed you are liable for the full whack!

I do not know if any of this helps but do feel free to contact me at [email protected] for any other help/information.

Regards,

Mark