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Living in France, Employed by UK company - Tax...

Living in France, Employed by UK company - Tax...

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Old Nov 7th 2007, 5:02 pm
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Default Living in France, Employed by UK company - Tax...

Hello everyone, first post today, been looking through quite a few posts and I have to say what a great information resource this forum is

My wife and I (both french) want to return home, but here's the crunch.

I have a job in the UK and my intial discussions with them suggest they would be supportive of me moving to France, while staying employed with them, essentially working from home abroad (bargain !). I'd have to travel back to the UK from time to time (1 week a month).

Now, I am not sure how this would affect my tax liability, and also theirs... Our Financial Director is looking into it but I would like to know too so that I can discuss with her when it comes to it.

Anyone had a similar experience ?
-Can you draw a gross salary from employer and pay tax in France ?
-Does the employer have to pay French employer's tax ?
-Do they have to abide by french employment laws ?
-... I am sure there are many more.

Sorry for a first long post, I will try to help where I can, I haven't jumped the fence yet, but I've lived in France 20 odd years so I should know a thing or two about it

Thanks in advance
Greg
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Old Nov 7th 2007, 6:42 pm
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Default Re: Living in France, Employed by UK company - Tax...

Originally Posted by mrFrog
Hello everyone, first post today, been looking through quite a few posts and I have to say what a great information resource this forum is

My wife and I (both french) want to return home, but here's the crunch.

I have a job in the UK and my intial discussions with them suggest they would be supportive of me moving to France, while staying employed with them, essentially working from home abroad (bargain !). I'd have to travel back to the UK from time to time (1 week a month).

Now, I am not sure how this would affect my tax liability, and also theirs... Our Financial Director is looking into it but I would like to know too so that I can discuss with her when it comes to it.

Anyone had a similar experience ?
-Can you draw a gross salary from employer and pay tax in France ?
-Does the employer have to pay French employer's tax ?
-Do they have to abide by french employment laws ?
-... I am sure there are many more.

Sorry for a first long post, I will try to help where I can, I haven't jumped the fence yet, but I've lived in France 20 odd years so I should know a thing or two about it

Thanks in advance
Greg
I think the countries will work the taxation side ok, if you earn the money in the UK then you will be taxed there I would assume, but the health cover will be a pain.
They will be stopping payments for it in the UK, but as you are not resident there you won`t be able to claim it, and as you won`t be paying French NH then you won`t have cover there either.
This has happened in Spain a few times and people are still trying to sort it out as the authorities just pass them onto the next department.
Your company may have better luck trying to sort it than you will.
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Old Nov 7th 2007, 6:52 pm
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Default Re: Living in France, Employed by UK company - Tax...

Originally Posted by mrFrog
Hello everyone, first post today, been looking through quite a few posts and I have to say what a great information resource this forum is

My wife and I (both french) want to return home, but here's the crunch.

I have a job in the UK and my intial discussions with them suggest they would be supportive of me moving to France, while staying employed with them, essentially working from home abroad (bargain !). I'd have to travel back to the UK from time to time (1 week a month).

Now, I am not sure how this would affect my tax liability, and also theirs... Our Financial Director is looking into it but I would like to know too so that I can discuss with her when it comes to it.

Anyone had a similar experience ?
-Can you draw a gross salary from employer and pay tax in France ?
-Does the employer have to pay French employer's tax ?
-Do they have to abide by french employment laws ?
-... I am sure there are many more.

Sorry for a first long post, I will try to help where I can, I haven't jumped the fence yet, but I've lived in France 20 odd years so I should know a thing or two about it

Thanks in advance
Greg

Hi Greg and welcome
If you do a search you will find this has been covered a bit before, as a few of us live in France and work in UK. I did it a few years ago. Your employer in UK doesn't have to pay French tax. I had PAYE and NI deductions made from my UK salary but had to declare the income on our French tax return. They took into account tax I'd paid in UK as there is a double tax agreement between the two countries. If you are working for a UK employer then French employment rules will not apply - are you thinking of the 35 hour week
Sure others will come along with more information for you. I know Dreamcatcher's husband works in UK so she might have more up-to-date information.

Last edited by val50; Nov 7th 2007 at 6:53 pm. Reason: spelling mistake
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Old Nov 7th 2007, 11:34 pm
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Default Re: Living in France, Employed by UK company - Tax...

Originally Posted by val50
Hi Greg and welcome
Thanks, noticed you live in normandy, do you mind me asking where ? I was born in Caen, lived in Baron sur Odon for four years, then moved to Lisieux where my mother still lives

Originally Posted by val50
If you do a search you will find this has been covered a bit before, as a few of us live in France and work in UK.
I ran a search and didn't find what I wanted

Originally Posted by val50
I had PAYE and NI deductions made from my UK salary but had to declare the income on our French tax return. They took into account tax I'd paid in UK as there is a double tax agreement between the two countries.
That's what I understand so far.

Originally Posted by val50
If you are working for a UK employer then French employment rules will not apply - are you thinking of the 35 hour week
That's good news , I have no intention of abusing the freedom they are willing to give me, however, 8 weeks holiday in return for working more than 35 hours (As my mother in law enjoys) is something I could do with

What about social security cover ? As jdr pointed out it seems that could be an issue ?
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Old Nov 8th 2007, 7:33 am
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Default Re: Living in France, Employed by UK company - Tax...

Been looking for more information on health cover and it looks like a bit of a minefield...

Having slept over it, and realised that both my wife and I are French, I was wondering if that would help in any way, i.e. entitlement to health care by default

Probably need to make a few phone calls
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Old Nov 8th 2007, 8:45 am
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Default Re: Living in France, Employed by UK company - Tax...

Originally Posted by mrFrog
Thanks, noticed you live in normandy, do you mind me asking where ? I was born in Caen, lived in Baron sur Odon for four years, then moved to Lisieux where my mother still lives


I ran a search and didn't find what I wanted


That's what I understand so far.


That's good news , I have no intention of abusing the freedom they are willing to give me, however, 8 weeks holiday in return for working more than 35 hours (As my mother in law enjoys) is something I could do with

What about social security cover ? As jdr pointed out it seems that could be an issue ?
Hi Greg,
we are in Carentan, our eldest went to university in Caen. Love it here.
When I worked in UK, I still had NI contributions deducted automatically from my pay. We were covered here in France for healthcare, social benefits etc. as my husband worked for a French company. I think best thing for you to do is visit you nearest CPAM office and discuss it with them. It might be if you are paying NI contributions in UK then you will be able to obtain your E121 but have to join a Mutuelle in France to make top payments. Have found our local CPAM office very helpful so think that is probably the best place to go to for more information.
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Old Nov 9th 2007, 5:47 pm
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Default Re: Living in France, Employed by UK company - Tax...

Originally Posted by val50
Hi Greg,
we are in Carentan, our eldest went to university in Caen. Love it here.
When I worked in UK, I still had NI contributions deducted automatically from my pay. We were covered here in France for healthcare, social benefits etc. as my husband worked for a French company. I think best thing for you to do is visit you nearest CPAM office and discuss it with them. It might be if you are paying NI contributions in UK then you will be able to obtain your E121 but have to join a Mutuelle in France to make top payments. Have found our local CPAM office very helpful so think that is probably the best place to go to for more information.
Thanks for the update, will make a few phone calls and see what's what
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Old Jun 25th 2008, 9:43 am
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Default Re: Living in France, Employed by UK company - Tax...

Mr Frog

I am in exactly the same situation and have found out quite a lot - though there is a lot of mis-information out there, too (and I hope I am not going ot be adding to it here!).

One week a month means you are resident in France (so too if France is where your primary residence is and where you are carrying out most of your work).

-Can you draw a gross salary from employer and pay tax in France ? YES
-Does the employer have to pay French employer's tax ? HE HAS TO PAY SOCIAL CHARGES AND THEY'RE ENORMOUS
-Do they have to abide by french employment laws ? YES

The closest - but costly and bureaucratic - "solution" I have found is to be set up as the sole representative of a foreign company in France:

you need to talk to URSAAF, Taitbout and especially search under Employeur
sans établissement en France.
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Old Jun 26th 2008, 7:11 am
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Default Re: Living in France, Employed by UK company - Tax...

It seems everyone's giving good advice already, so I won't parrot what's been said, but will wish you all the best on your return "home".
The English weather alone is enough to drive most people away!
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