Working in France - how long before tax gets complicated?

[wendy]

My ambition is to live and work in Paris for a year or so.  Reading Living France and other mags makes me realise the tax complications of this ambition.  Can anyone tell me

a) after what period living in France would you cease to be a UK resident for tax purposes? (and therefore jeopardise any investments in the UK which are open only to UK residents) 

and

b) after what period living and working in France, and paying tax on your French earnings, you would have to declare to the French tax authorities, and be taxed in France on, any income being earned in the UK (eg savings account interest).

Thank you for any input anyone can give.

 

[Sunday Driver]

Assuming that you are leaving the UK to come and live in France and that (apart from your UK savings account interest) your earnings will derive from employment in France, then:

a) See this HMRC booklet entitled[url=http://www.hmrc.gov.uk/pdfs/ir20.pdf] "Residents and Non-Residents - Liability to Tax in the United Kingdom"[/url]

b) you become tax resident in France the day you take up residence and you must declare your world wide earnings, which includes UK savings account interest. Your first tax declaration would be submitted in Q2 of the year following your arrival in France and will cover the period from the date of your arrival until 31 December of that first year.

[Debra]

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[LizzieJ]

Hi folks,

I have a house in the Languedoc and I rent it out.  The rental income just covers the bills for part of the year.  I am resident in the UK and pay tax in the UK.  Some questions:

1. Should I declare the small amount I get, which would be below 5,515 Euros (i.e. under the tax threshold it looks like, reading a post here).

2.  Should my changeover person give me an invoice with the tax separated out, and if so, what % rate of tax is due for cleaning and changovers?

3. If anybody does any building for me, they should also give me an invoice with the % of tax separated out....19% or 19.5%?  Just checking!

4. Should I declare accounts in France as my income is so low?

Hope someone can answer these questions.

Many thanks,

LizzieJ

[Tony F Dordogne]

I would have thought that whilst people here could give you some general advice - those people who rent out also, other maison secondaire owners etc - to get defininitive advice you should talk to an accountant, they are covered by insurance if the advice they give you on whether you should declare or not is accurate or not.

If your changeover person is invoicing you, you are likely to be returning their employment somewhere in France, cheque d'emploi (?), cotisasions etc so perhaps the person dealing with that for you can advise you.