Cheque Emploi system used by UK resident?

[milkeybar kid]

Can a UK resident that has holiday home here acquire the cheques Emploi system to pay a french resident. The British French resident is desperate to be above board rather than put the cash in his back pocket, he only does 6 hrs a month. The confusion being that the UK resident is obviously not tax resident here therefore the cheque employ is perhaps not the answer - advice appreciated . Milkey

[LesLauriers]

UK residents can use Cheque D'emploi.

[milkeybar kid]

thank you, Leslauriers please do you have the answer to -

Because this person that is early retired in France who wants this cheque emploi and is getting a UK Government pension. Is it in any way detrimental to his income tax position here in France. Have I understood that with this special cheque once cashed all dues are paid , end of story- yes?

[Clair]

http://www.completefrance.com/cs/forums/1668848/ShowPost.aspx

[milkeybar kid]

Say's it all, thank you Clair.

[allanb]

[quote user="LesLauriers"]UK residents can use Cheque D'emploi.[/quote]I've no reason to doubt this, but I'm fairly sure that to use the chèque emploi system you would at least need to have a French bank account: first, because only a French bank can issue the special cheque books; and second, because the CESU (which administers it) will require a prélèvement order so that they can extract the necessary contributions from you.

[Doodle]

This is an interesting subject - my next door neighbour who is british and the house is a holiday home wanted to employ a gardener. The gardener who I'll just refer to as G, british and residing here permanently wanted to do the work on the black. My neighbour wanted to be up front and so was told by G that was fine but there would be an extra 5 euros per hour to cover the tax and to go to the bank to set up a Cheque D'emploi. Neighbour goes to Credit Agricole who say as she is not resident in France it is not possible to do so as she could not pay her part of the contribution. She has now terminated G and it using an english chappy registered as a micro entreprise and is very happy with this arrangement.

Chris

[milkeybar kid]

allanb, yes of course they need a French bank account -surely it would be very unusual an owner of a holiday home not to have a French bank account.

Knee gel I have tracked an English (Uk resident)holiday home owner who has used cheque Emploi system with no problem using Credit Agricole,this was used to pay French man for garden maintenance.

Correct me if I am wrong but the only down side is the person that issued the cheque would have got some kind of rebate (payback) off his income tax (if tax resident) , I am not sure what % .So if not registered for income tax no rebate...

[Cerise]

I am paid CESU by an English non-resident.  He has the special cheque book from his French bank.  The downside, as you correctly surmise, is that he has to pay the cotisations as well as my wages and being non-resident there is no tax relief.

[milkeybar kid]

Cerise, please, what % would the person get back in Tax relief.Thank you.

[Cerise]

If they are non tax resident nothing.  If they are resident about 50% of the total - pay + cotisations.  Cotisations work out about 50% of pay.  Say you are paid 10€ hour, then cotisations are about 5€ - total 15€ and the following year the resident emplyer gets back about 7.50€.

Clear as mud, no?

[Hereford]

Even if you are tax resident in France you can only get tax relief if you actually PAY tax!  We know someone who pays this way but gets no relief whereas we find it a very efficient way to pay...

H

[milkeybar kid]

Thanks Cerise and Hereford. I think all my queries have been answered. Milkey.

[Cerise]

Not so Hereford.  I pay my cleaning lady CESU.  As I don't earn enough myself to pay tax the impots send me a refund each year.  I think this changes if you are elderly and receive certain state benefits but normal age taxpayers will get the money back if they don't have tax to reduce.

[Richard51]

Sorry to resurrect an old post.  We have a holiday home which we let out.  Our neighbour has offered to do the change overs for us and we were looking at using the cheque d'emploi.  Can we claim the 50% tax back against the tax liability on our rental income (we live in the UK).

[Will]

I would imagine that is pretty unlikely as, although you are taxed in France on French rental income, you do not count as being fiscally resident in France.

The cost to you of providing the chageover service should be an allowable expense against tax though.

 

[Richard51]

I just did some more digging and the following seems to suggest that we might be able to offset the payment against our French tax liability but we can't actually reclaim any tax (taken from http://www.cesu.urssaf.fr/cesweb/ces1.jsp):

Qui est concerné par le crédit d'impôt ou la réduction fiscale ?

Vous pouvez bénéficier d’un crédit ou d’une réduction d’impôt si vous remplissez les critères ci-dessous : 

• Crédit d’impôt :

  - si vous exercez une activité professionnelle ;
  - ou si vous êtes inscrit sur la liste des demandeurs d’emploi durant 3 mois au moins au cours de l’année.

Si vous êtes mariés ou avez conclu un PACS, vous devez tous les deux satisfaire à l’une ou l’autre condition.

Ce crédit d’impôt est imputé sur l’impôt sur le revenu. S’il est supérieur à l’impôt dû, l’excédent vous est restitué.

Par exemple, vous bénéficiez d'un crédit d'impôt de 1 500 € :

- Si vous n’êtes pas imposable le Trésor public vous restituera 1 500 €.

- Si vous êtes redevable d'un impôt de 500 €, vous recevrez du Trésor public un chèque de la différence, soit 1 000 €.

• Réduction fiscale :

  - Vous ne remplissez pas les conditions pour bénéficier du crédit d’impôt;
  - et vous êtes imposable.

Ainsi

par exemple, vous êtes retraité ou vivez en couple dont un seul des

conjoints travaille ou est demandeur d’emploi et vous bénéficiez d'une

réduction fiscale de 1 500 €.

Si vous êtes redevable d'un impôt de

500 €, vous n'aurez pas d'impôt à payer, en revanche l'excédent de 1

000 € ne vous sera pas restitué par le Trésor public.

Pour toute

information complémentaire sur la législation fiscale en vigueur,

invitez vos clients à contacter les services fiscaux dont ils dépendent.