UK/French Tax situation

[SS2002]

Hello, hope someone can help!  When I move out with my daughter, my husband will be staying in the UK and coming over for the weekends.  I was under the impression that his UK earnings will be taxed in France as we are there full-time (by the way, he'll be self-employed) but his accountant says he will only pay tax on any monies he remits to France, which may be none as I am looking for a job in France.  Can anyone clarify this?

Many thanks, Sandra

[Cjlaws]

There is a double taxation convention between the UK and France. For the purposes of that convention your husband will be deemed to be resident either in the UK or in France.

You might like to point your accountant to this link

[Kaf]

We are in a similar situation. The local tax office here advised us that you are normally regarded as taxable in France if your main residence is here. However, because my other half spends more than 181 (or possibly 183 I can't remember which, offhand) days in UK he is taxable in the UK.

We went to the local tax office here and explained that all our income was from UK and taxed there and they told us that we did not have to pay tax here' although you do have to fill in a tax return. (There is a special one for foreign income). We've been doing this for 4 years now with no problems although I have heard of other tax offices interpreting the rules differently.

Incidentally, if your other half is paying UK tax and Nat Ins, you should be entitled to UK child benefit and possibly tax credit. I think the child benefit situation is pretty clear, it depends on where you pay Nat Ins, not where the child lives,  but you may have problems with tax credit as they don't seem to understand the concept of living in one country but working in another. It took about 9 months of wrangling with tax credit office, but we finally got our tax credit too.

We also get our health cover by means of an E106, but this has to be renewed every year after they check that you are still eligible.

Hope this is of use to you but please check in detail for your own circumstances.

Karen