Jump to content
Complete France Forum

PAYING TAX ON BUISNESS IN U.K. ?


kevin.

Recommended Posts

You will certainly have to declare your tax in both countries.  The double taxation treaty may mean you are nto liable for tax in both countries.

Be aware that if you do any work for your comapny while in France (even by Internet), you are liable to French taxes and social contributions.

 

You should seek professional advice based on your exact circumstances.

 

 

Link to comment
Share on other sites

More to the point, your employer will be liable to French social charges (about 60%!) - if you are employed by a UK firm. If you are self-employed and living in France, you must be a) registered to do what you do b) pay social charges (& tax if necessary) as a self-employed person, you will not pay tax (or NI) in the UK, if you live in France.

As Andy says, get professional advice, from a French accountant - not one of these dubious English bookeepers few of whom are qualified in French practices. Or your local Chambre de Commerce will help you.

 

Link to comment
Share on other sites

[quote user="andyh4"]

You will certainly have to declare your tax in both countries.  The double taxation treaty may mean you are nto liable for tax in both countries.

[/quote]

Incorrect, you ARE liable for tax in both countries (in most cases). A double taxation agreement allows you to offset tax paid in UK against yr liability in France. But you need professional advice.

John

not 

Link to comment
Share on other sites

I'm not so sure, John.

It is difficult to pay tax in both countries - if employed & living in France, your employer would (must in most circumstances) be French, so tax paid here, regardless of where it is earned. If self-employed, then registration here is mandatory & hence tax paid here (regardless of where it is earned).

This is going to change as a result of a recent EU agreement - but it will be several years in the making....

 

Link to comment
Share on other sites

It's an interesting situation. If it's a UK registered company, then it will be liable to UK tax and charges. In order to employ somebody in France, it should set up a French subsidiary, or contract out to to self-employed workers, under either of which those involved will need to be registered in France, and pay tax and social security in France. It doesn't sound like a particularly feasible setup. It might work if you had staff in Britain running the company, and you did no work for it while in France, just popping over from time to time. It could well be treated as investment income in France, something which the tax man does not like very much.
Link to comment
Share on other sites

[quote user="Will "]It's an interesting situation. If it's a UK registered company, then it will be liable to UK tax and charges. In order to employ somebody in France, it should set up a French subsidiary, or contract out to to self-employed workers, under either of which those involved will need to be registered in France, and pay tax and social security in France. It doesn't sound like a particularly feasible setup. It might work if you had staff in Britain running the company, and you did no work for it while in France, just popping over from time to time. It could well be treated as investment income in France, something which the tax man does not like very much.[/quote]

I (like the OP I belive) was referring to personal taxation/charges. Obviously a limited company pays corporation tax in the country in which it is formed. As I understand it, a UK limited company must create a sub in France to employ a French resident of any nationality.

I don't think that it matters even if the employee is also a Director.

Or have I missed something?

 

Link to comment
Share on other sites

[quote user="nicktrollope"]

I'm not so sure, John.

It is difficult to pay tax in both countries - if employed & living in France, your employer would (must in most circumstances) be French, so tax paid here, regardless of where it is earned. If self-employed, then registration here is mandatory & hence tax paid here (regardless of where it is earned).

This is going to change as a result of a recent EU agreement - but it will be several years in the making....

 

[/quote]

Nick, I did not say that you would PAY tax in both countries just have 2 liabilities. The implication in Kevin's post is that he is a French resident for tax purposes thus his worldwide income is liable for tax in France. But any tax already suffered in the UK would be deducted in computing how much he has to pay in France.

Though there is insufficient info to give a proper answer and I am not qualified so to do anyway.

John

not

 

Link to comment
Share on other sites

  • 3 weeks later...
I thought (cos I must have been told) that it was possible to be

domiciled in France but tax resident in the UK if that is where one's

earnings are made. That it was simply a case of signing a paper when

changing your house status from Secondary to Primary.

david

Link to comment
Share on other sites

No - if you live in France you are tax resident in France and must declare you worldwide income to the French tax authority.  You can also be ordinarily resident in the UK and may earn money there.  If you actually do the work in the UK then you will pay tax on it there and then declare it to the French tax man who will then calculate his slice of the income, then deduct the UK tax you paid from that figure.  If he is due any tax from this calculation you will have to pay it.  If you have paid more tax to the UK than you would have done in France then nobody gives you a refund!

If you do the work in France (for a UK company) then you should be taxed in France and this is when you get into difficulties over whether to be classed as self employed, working for a French subsidiary of a UK company etc - but you still should be declaring income in France, not in the UK.

If you are doing part of the work in France (ie from home via the internet or something) then it gets complicated and I would imagine that you would have to be taxed by France first for the portion done in France and the UK first for the portion done in the UK.  Where it gets really complicated is what status would you have to have for the portion done in France?  I wouldn't fancy trying to sort this one out!!

The question of 'domicile' is different to where you are ordinarily resident and you can be considered as domiciled in the UK for quite some time after you've been living permanently in France, even if you no longer have a home in the UK. 

Link to comment
Share on other sites

I am self employed in the uk, but have been working 50/50 uk france but paying tax in the UK.

I would like to upgrade the french house to my main residence so I can sell it without

paying CGT.

I am in the process of negotiating a property split. The notaire has said that it's

possible to do a donation entre epouse from wife to me and that there is 7% tax payable by me

if the price is over E67k. He recommended therefore to transfer it at a value of E70k to avoid paying

too much tax, and not looking as if defrauding the impots by paying no tax!

This sounds ok, as Wife will have no CGT to pay on the Donation. HOWEVER, when I come to sell (at a more realistic price)

then I would have to pay CGT at whatever it is 46% of profit? if it's a maison secondaire.

I was thinking that a def 7% of 100% now is much more palatable than 46% of  50% in the future.

BUT in the back of my mind I think I remember there being another threshold on the Donation at which the tax

becomes payable at 15% . . . .Anyone else been down this narrow path before?

ANY comments gratefully received!

David

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...