Form 2047 Sections I & VIII Question

[lorna]

We are both resident from June '07.

In section I we have entered a salary amount (small) which my OH has paid himself from his UK company. This was set up whilst we were in the UK to enable him to work as an IT consultant. We have also entered my pension in section I.

In section VIII we have written the wording as suggested in the FAQs re being covered by an E121. At present we have left the box blank but should we enter the salary amount in this box? (I've been telling him to follow the FAQs and now he is but they don't cover salaries.)

We live in a part of France where there aren't many UK nationals. When my OH went down to the local tax office with some queries they weren't able to help very much (eg they said to enter net amounts if tax had been paid in the UK).

I've searched on the forum but couldn't find a similar question.

[woolybananasbrother]

We live in a part of France where there aren't many UK nationals.

Lucky you.

[lorna]

Yes, I think we have been quite a curiousity for our French neighbours but they have been friendly and welcoming.

[lorna]

He phoned HMRC again on this one. Because he was in France when it was earned it is taxable in France. If he had been in the UK then it would be taxable in the UK. Therefore we are entering the amount in section I and transferring it to the box in section VIII.

We realise from seeing other discussions on this subject that this arrangement could create other problems and he will not be paying himself any salary from the company in this way in the future. We will be looking into other arrangements that will fit in with the French regulations.