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UK "benefits and expenses received" payable in UK -and- France?


Crevette

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I am on a detachment contract and working in France but paid from the UK ("No Tax" code). I have also paid my taxes in France based on my UK income + benefits in kind (an International PPP private healthcare paid by my company).

Much to my surprise, despite the NT tax code, the Inland Revenue claim tax (at the 10% level) for the Healthcare cover (taxable value £671).

Every year I have filed my French tax returns I have added on the Healtchcare to my income.

Does anyone know what is going on? Do I need to pay tax on this two times? Any recent changes related to "benefits in kinds"?

Any help appreciated,

-Rob-

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Your situation is rather unusual so I wouldn't necessarily expect anybody on this forum to have a definitive answer, and even those who have had close knowledge of UK taxation would not necessarily be up to date with any recent changes. Rules, and the way they are applied, seem to change all the time. I think your healthcare plan will definitely be regarded as a benefit in kind, and so will be liable to UK tax, unless it has already been taxed in France.

I would suggest phoning the tax office that deals with your UK tax. There should be a number on your tax documentation. Once you get through to the right office they should be able to explain why they are making this deduction. What they will not be able to do, of course, is tell you anything about French taxation, so if both countries are claiming tax on the same benefit you could have a bit of a battle.

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I suspect that we will be in a similar but reverse situation when we move. I keep asking and asking and get so many different replies about this. I reckon that we will end up paying twice as the french seemed determined to get money from us as income will be french generated and the UK is wanting some too as we will live there.

Our situation is also rather complicated and even if it is the the same as yours, unfortunately IF I ressolve this, it won't mean that the functionnaires that you deal with will ressolve your situation in the same manner.

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The UK seem to be pretty sure I need to pay this tax in the UK (I rang the UK tax office) but don't know the French Laws. This is the first time they have asked for this.

A few years back I had a French Tax Specialists firm which always included the amount in the French Tax declaration. I DID read something a while ago about a change coming into affect in 2004 for not paying tax in France on bonusses, healthcare, and pension received from the UK ;

http://www.lowtax.net/lowtax/html/offon/france/fracoord.html

As I have done my own declarations for 2005-6, perhaps I have been overpaying...

I havn't found the corresponding details on "french" web-sites.

Regards,

-Rob-

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