Moving Family to France and Working in the UK

[Devonian77]

Hi All,

This is a question that's been asked thousands of times before but whereever I look I struggle to see a definitive answer so thought I would ask the question to see if anyone could offer some advice.

To give you a quick overview we (myself, wife and 2 kids) are currently based in the UK but considering a move to France sometime in the next 1-3 years. My son was born in France and my wife has lived there for approx 8 years previously so is fluent in the language, she still has family living there also so we have a good idea on what to expect.

What's causing the issue is that I currently work predominantly from home in the UK (for a London based company) and could potentially keep this employment should we move abroad.

Tax would obviously be the big issue so what I'm trying to work out is how we would do this. Firstly if I was in France pretty much full time and secondly if I spent 184 days per year or whatever the requirement is in the UK would this affect where I pay tax?

We currently own 2 properties in the UK so would look at keeping a base/address here.

I guess my ideal is for us to live in France generating some income from Gites/B&B (my wife has owned a hotel/gite complex previously with family) and she may possibly look at teaching languages also. Where as I would ideally like to keep my job in the UK, so any tips on how best we could work this would be great.

As you can tell from my comments above I have rather been going round in circles with this so just need someone to point me in the right direction :-)

Many thanks

[idun]

It won't be the tax that is the problem, at all,  it is the social charges associated with your business, especially if you are considered as working in France for a UK company.

You need to talk to a good international accountant who understands exactly how the french system will work with respect to yourself, before you do anything.

[andyh4]

I second Idun's comments, a good international accountant - which will be from either one of the big boys or a specialist company - is a must.

It is very complex and you should not rely on such simplicities as the 183 day rule. This is oft quoted as if this will determine the taxation of your earnings. In fact the Double taxation treaty mentions 183 days only once, and then in the section regarding people working in international transport - Mariners, HGV drivers, Aircraft crew etc.

The broad rule of thumb is that where you do the work, is where you should be taxed, but again you need specialist advice since we are not only talking of where you would pay tax, but also (if you are deemed as French tax resident) how and as what you should register yourself to avoid some pretty heavy charges.

[AnOther]

Just to be clear, in case you are not aware, you cannot relocate to France

and simply carry on as if nothing had changed, you must work though a French business entity of some sort, even if it is over the internet.

With your family living in

France you too would be deemed French resident regardless of the days

you spent here or in UK, when it comes to residency you do not have the

luxury of choice.

[canard]

Hi Devonian77. I moved to France 4 years ago and still work in UK. I am a salaried UK employee but considered a French resident because my main residence is in France. Regardless of size or status of my home or number of nights spent there the French property is considered my main residence because that is where my wife and children are.

However being employed in UK I am taxed in UK under the dual tax arrangements. The number of nights I spend in either country has no bearing on my fiscal status in either country.

It is important to remember these are my experiences as a UK employee, I believe things are very different if you are self employed or a director.

As others have said, seek out the advice of a good accountant and there is also a fair amount on the Internet for a bit of background reading.

Good luck.