freelancing in France for UK clients

[pops]

Hello,

We are looking at moving to France, I am freelance and could work remotely for the UK clients I work for at the moment. I am confused about how this would work from a tax point of view, though. My initial thought was that I would pay tax in the UK but I think I am wrong about that. I am freelance self-employed rather than self-employed and setting up a business - I would never be employing anyone else. I have been told I would have to pay cotisations which would work out at around 45% of income, and have to pay charges even if I don't earn. Is this correct? Thanks!

[Will]

You pay tax and cotisations in France if you carry out the work in France, regardless of the nationality of your clients. Cotisations are indeed about 45% so it will pay you to use a good accountant who can keep the taxable income figure as low as possible.

 

[pops]

so you take home 55% - or is that taxed further?

[Will]

You pay tax as well. Cotisations are paid quarterly, as you go, then you make a tax return in the following year. As the outgoings are potentially so high I stress again the wisdom of employing a good accountant.

[Celestine]

Cotisations are only charged on your profit though arent they, not the whole amount youve earnt? So it would be 45% of your profit?

[Panda]

Hi

This subject is coming around about once a month at the moment but in answer to Celestine, you are right the 45% is percentage of 'taxable' income.  In the case of micro's you get a large allowance for costs (upwards of 35% but business/trade related) you deduct the allowance from your gross earnings and the 45% is the approximate level of cotisations applied after the deduction.  Tax is negligible in most cases.

It is different case by case but for me it works out that I pay about 25% of gross earnings in costisations and tax which as I always say is about the same if you add tax and NI as I would in the UK.

Panda

[pops]

so the 45% is the top end of the scale? I would not expect to be earning huge sums (sadly) and I will not be building up a business as such, just working on a sole trader basis, ad-hoc

[tinabee]

Pops,

You might want to consider using a Portage Salarial company which is like an umbrella company that will do all your invoicing and pay your cotisations. This effectively makes you employed as far as the French system is concerned, but in operation you are effectively freelance. There is an explanation in English from this company (I have not used them yet but I am considering it)

http://www.freelanceinfrance.com/

It does mean you pay a bit more, but it takes away ALL of the headaches of setting up a business and paying cotisations if you are not earning.

 

 

[Mr Coeur de Lion]

I use them. Biggest bonus is being able to use your time properly doing the job you want to do, rather than that of the French governments. For around 10% of what you make, all the paperwork is handled by the portage company. That would also be much cheaper than employing someone to do all that side of things, as well as avoiding all the hassles of dealing with an employee too. Win-win imo.