Double taxation (UK and France)
Mar 20th 2018, 10:57 pm
#1
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Double taxation (UK and France)
Hi, my husband and I are moving to Paris for 12 months from London. My company based in UK will continue to pay me in UK as per my current contract so the income tax would get deducted in UK. Do I also need to pay tax in France please? Please help and explain. Thanks.
Mar 21st 2018, 8:50 am
#2
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Re: Double taxation (UK and France)
Welcome to the forum.
In France, you are not taxed as an individual but as a family. i.e. one tax return per household.
You will have to complete a french tax return and declare all worldwide income and tax paid.
There is a double taxation agreement between the UK and France which means that you do not pay tax twice on your income but it can influence the tax paid on any french income. You also need to apply to DWP for a worker's S1 to cover healthcare for your family.
HTH
Mar 21st 2018, 9:19 am
#3
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Re: Double taxation (UK and France)
As cyrian says.
That's the general rule, however you should clarify the arrangements with HMRC and your employer's HR department.
Your income tax liability on income earned in France will presumably be to France, but you may find that HMRC asks your employer to continue deducting tax PAYE. If so, you will be able to claim this tax back but only when you can prove you have declared the same income and paid tax on it in France. The French tax year is the calendar year, and the tax exercise takes place in May of the following year, so income you earn in France during 2018 will be declared to the French tax people in May 2019 and you'll receive your tax bill probably between July and September 2019. You would then pay the French tax bill and claim a refund of the tax previously paid to HMRC.
This page explains:
https://www.gov.uk/guidance/paying-e...working-abroad
That's the general rule, however you should clarify the arrangements with HMRC and your employer's HR department.
Your income tax liability on income earned in France will presumably be to France, but you may find that HMRC asks your employer to continue deducting tax PAYE. If so, you will be able to claim this tax back but only when you can prove you have declared the same income and paid tax on it in France. The French tax year is the calendar year, and the tax exercise takes place in May of the following year, so income you earn in France during 2018 will be declared to the French tax people in May 2019 and you'll receive your tax bill probably between July and September 2019. You would then pay the French tax bill and claim a refund of the tax previously paid to HMRC.
This page explains:
https://www.gov.uk/guidance/paying-e...working-abroad
