NT Tax code

[Zippy]

I work for a UK employer and currently paye tax and NI in the UK. In 2007-2008 I will be resident in France (will be returning to the UK less than 91 days / remainder of time working via computer / phone from my home in France). My question is " if I apply for a NT tax code in the UK and therefore pay tax in France, will this notify the french authorities such that they will approach my current employer and demand that they pay employers social contributions in France?"

Re NI I am still working through this and am awaiting a decision from the CNR as to where my liability falls!

Many thanks

[Will]

Quite probably, though where bureaucrats, both English and French are concerned. who knows? The tax (and social security) people in the two countries certainly do communicate with each other, though unfortunately not to the extent of being able to give guidance from UK on tax position in France and vice versa. Which is why getting a definitive answer to any question involves talking to both sides of the Channel, takes a long time and is difficult.

The correct way to handle this (living and working in France and being paid by a non-French employer) is one of the following, according to the French Chamber of Commerce in London:

1. The employer sets up a French subsidiary company, with which you have a French employment contract and which pays the employer cotisations, and pays you, after deducting the employee cotisations and notifying the French tax office so they know how much tax to demand from you.

2. You work through a portage company which invoices your employer, handles the deductions (including its own fee), and pays you regularly, based on what is left.

3. You become self-employed in France and invoice your company in UK, paying your own cotisations (which as the employer does not have to pay, should be able to pay you a sum based on at least you salary plus the employer's NI contribution in UK).

This is one instance where it is important to do one of these things, because if you get it set up wrong the French authorities are likely to demand both the employee and employer cotisations from you, which together will represent about 60% of your salary.

[Coco]

[quote user="Will"]

This is one instance where it is important to do one of these things, because if you get it set up wrong the French authorities are likely to demand both the employee and employer cotisations from you, which together will represent about 60% of your salary.

[/quote]

I'll second that, I was working very much how it sounds as if you intend to work and what Will describes above is exactly what happened to me.  And the French authorities are not prepared to accept any excuses, ie "your lady in the front office helped me with the forms and told me just to sign and she would fill out the rest."  It didn't wash and I got stung for the whole lot.  Hardly worth working!

[Panda]

Hi

I work for a UK employer but have set up as self employed, it works fine, I invoice my old employers and pay the tax and cotisations myself.  In my case it was the easiest option, I didn't want toscare my employer off and risk losing the work with all of the potential in's and out's of french tax and cotisation issues and so took the decision to simply charge for my time.

Panda