UK tax question

[Gemonimo]

I have lived in France for over twenty years.  I don't own a home, have securities (or even a bank account) and don't pay tax in the UK. I am taxable in France although my revenue is not enough for me to be 'imposable'.  This summer I will be taking care of a friends aged mother while my friend goes to Australia for a few months.  I will be paid and declared in the UK by my friend.  My question is.... can I just take the cheque and deposit it in France and declare it in my tax return for 2010 or do I have to declare it as earned income in the UK, pay tax, NI etc. 

Thanks for any help.

[spectateur]

I would suggest that you ask the friend to pay you in euros by transfer to your bank in France. You can then declare the income on your 2009 declaration.Why get involved with the UK tax people.

[Vanman]

If you will be taking care of your friend's mother *in the UK* then in principle you'd have income that was taxable there (that is, income from a trade or business carried on in the UK).

If you are a UK national you'd be entitled to a full year's personal allowances against that income, and if the income you earned didn't exceed the tax allowances you wouldn't be in much trouble if you didn't declare what would be a nil UK liability.

But as you are a French resident the income would be taxable in France too - with any UK tax you pay qualifying for relief against French tax.

[Albert the InfoGipsy]

So for tax the question is: will you be paid more than £5,000 for the work you do in the UK? That's roughly how much the personal allowance is nowadays.

National insurance could be another matter entirely.

 

[Gemonimo]

Thanks everyone for your helpful replies.  I won't be paid as much as £5,000 but I'm beginning to think that a euro cheque paid into my French bank account will ultimately be the answer.  It's a few months away so I have time to think about it.  Thanks again for your help.