vickybear Posted March 19, 2006 Share Posted March 19, 2006 I understand social charges of 8% are paid on 97% of earned income. However, is this income earned only in France or worldwide income, if you are a French tax payer.I.E. If income is earned in the UK where it is taxed and NI'd, when you declare this on your French tax return is there a further 8% to pay?Is the social charge levied on all earned income or is the French allowance for nil tax taken off first?Confused of Charente Link to comment Share on other sites More sharing options...
Ron Avery Posted March 19, 2006 Share Posted March 19, 2006 I understand social charges of 8% are paid on 97% of earned income. However, is this income earned only in France or worldwide income, if you are a French tax payer.No, you are getting confused between medical contributions and social charges paid on income. If you are not working in France, your contributions to the Health system (CMU) is 8% of worldwide income above a ceiling (9600€ for a couple?). Social charges CRDS are paid on earned income but unearned income such as rent and savings interest attracts the most in social charges and that they can work out to be as much as 15% of gross income. I.E. If income is earned in the UK where it is taxed and NI'd, when you declare this on your French tax return is there a further 8% to pay?The 8% figure is wrong anyway, see above. But why are you paying tax in the UK if you are also a French tax payer? If you live in France you pay tax in France, there is no choice, unless you have a UK Government vocational pension, If you declare your income in France, which you have to if you live here, and you do not have a double tax indemnity in place you will get it taxed again. If you have double taxation immunity, you still have to declare yor income in France and your contributions to the health system are calculated on your total income. You are entitled to Free pay in France and in the UK. Link to comment Share on other sites More sharing options...
Later Posted March 19, 2006 Share Posted March 19, 2006 Don't forget that if you are resident in France then your employer will also be lible to cotisations, even if you are employed by a UK company, but resident in France. In the UK cotisations (NI) are about 13%. In France they are likely to be about 40% (this is in addition to the income tax and cotistations paid by you personally). Link to comment Share on other sites More sharing options...
vickybear Posted March 19, 2006 Author Share Posted March 19, 2006 The following is from an article written by a tax specialist. I will be working around 3 months per year in the UK for a UK company. This is why I'm confused! UK employmentIncome from an employment carried out in the UK generally remains taxable in the UK. If you are tax resident in France but perform your duties in the UK (ie: you commute to the UK from France), according to the UK/France Double Tax Treaty, your employment income will be taxable in the UK and not in France. However, your employment income will be taken into account in determining the rate at which your other income is taxed in France.UK employment? Link to comment Share on other sites More sharing options...
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