Working in France and the UK

[Panda]

Hello

Does anyone have any experience of working both in the UK and France during a tax year?  I am currently self employed registered as profession liberale and have been offered work for a UK company which would be on a UK contract, taxed etc. in the UK.  I'm thinking I will just declare income from another country on my tax return and that no further deductions will take place.  I am up to the limit on my micro in terms of turnover so not sure how it would be viewed. 

Thoughts anyone?

EDIT a further thought, would my pension fund grow in both countries giving me the best of both worlds..

Panda

[Will]

Yes, I've been there. You are correct that work carried out in Britain is subject to UK tax, and you (or rather your accountant) will declare it on your French tax return as overseas income that has already been taxed elsewhere. It's not necessarily true that no further deductions will take place. It usually happens that when my UK income is added to our joint French income we go into a higher tax band in France - what the tax office do about this has been inconsistent, so I can't give an answer, but it will eventually result in extra tax in France.

As far as pensions go, that's a different minefield. Unless you are making separate and independent arrangements, it's not 'your' pension fund. In France the 'vieillesse' part of your cotisations goes mainly to paying the pensions of the already retired members of your profession, your own entitlement depends on you building up 'points', and to get a sensible pension payment you have to pay into the same caisse for a good few years. You can buy extra points, but it is highly debatable as to how worthwhile this is.

In Britain, if you have continued to make voluntary NI contributions to maintain your entitlement to full UK pension, then the NI part of your UK tax payment can indeed add to (albeit very slightly) your state pension fund, as long as you are able to pay more than just the minimum. You will need to suspend your voluntary payments while paying UK tax and NI.

Health cover is another question; it all depends on how long you spend in Britain and France respectively.

[Panda]

Hi

Thanks Will.  I'm not worried about tax in France, just wondered if I would have to pay more in cotisations?  I have a good 25 years until retirement age so if I paid UK NI and into the french system via cotisations for that length of time I should have a fair few points.  I understand also that you can covnert points from one to other which should mean I would have enough to get something back.

Hmm, lots ot think about.

EDIT: I would only spend 3 months in the UK

Panda

 

 

[Will]

Yes, if you have sufficient years of contributions (not sure of the figure) then you can combine the two state pension funds. It will probably, but not necessarily, work to your advantage if you can.