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Moving to France

Moving to France

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Old Sep 15th 2020, 1:19 pm
  #31  
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Default Re: Moving to France

Originally Posted by EuroTrash
Yes-ish.
For income tax purposes, France will count you as tax resident from the date you arrived. Next April/May you will fill in your first income declaration, state your arrival date in France and declare all your worldwide income between that date and 31.12.2020. So that side of things should be easy.
The UK however will probably fry your brain telling you to read and understand all their complicated rules on the various scenarios in which you can and cannot claim a split tax year. Depending how many days you spent / worked in the UK between April 2020 and April 2021 you may end up not being able to claim a split tax year and being classed as UK tax resident for the whole of the UK tax year 2020/2021 even if you left the UK part way through, thus making you dual resident for part of the year. If that happens you'll have to declare worldwide income for the whole of that tax year to the UK (meaning that you end up declaring some income in both the UK and in France for French tax year 2020, and the same again in French tax year 2021) and hope that HMRC works it out right. This is an especial pain because you can't declare foreign income to HMRC using their normal online system, you have to either use special commercial software which isn't cheap, or fill in a paper return.
Though if you use an accountant, hopefully (s)he will understand HMRC's split tax year concept, and will also have the required software, and will be able to do the calculations so that you're not at HMRC's mercy like I was.. I had endless fun with them when I moved back to the UK part way through a tax year. I filled in a paper return because I was damned if I was going to fork out for software just to do that, and it took nearly a year to get it sorted out. They fined me, I put in a complaint, and in the end they refunded my fine and compensated me for their mistakes and we ended up the best of friends for a few weeks until they started again sending me demands for payments they'd just apologised for asking for and assured me I didn't have to make : banghead: so good luck with that.
Yep. I remember our accountant giving out a quiet whimper when we told him we would be leaving mid-year!
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Old Sep 15th 2020, 2:26 pm
  #32  
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Default Re: Moving to France

Just read an article that said that UK banks were withdrawing cards from Brits that were living in France (and elsewhere in the EU).
They stated that it was because of regulations of dealing within the EU from the start of 2021.
Unless there is an agreement regarding cross border banking then it is worth bearing that in mind when you set up business in France.
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Old Sep 15th 2020, 2:35 pm
  #33  
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Default Re: Moving to France

I've read about that too - hard to get to the bottom of it but I think possibly it's a "money lending" issue rather than a banking issue. A lot of the fuss seems to be about credit card accounts being cancelled, not sure if bank accounts are being closed too.
Maybe to do with financial passporting?
Hopefully TransferWise won't be affected since its business model is all about facilitating cross border banking and money transfers, which it seems to be able to do between virtually any country and currency.
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Old Sep 15th 2020, 6:05 pm
  #34  
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Default Re: Moving to France

Originally Posted by cyrian
Just read an article that said that UK banks were withdrawing cards from Brits that were living in France (and elsewhere in the EU).
They stated that it was because of regulations of dealing within the EU from the start of 2021.
Unless there is an agreement regarding cross border banking then it is worth bearing that in mind when you set up business in France.
Information from Connexion says that French resident users of Barclaycard will have their cards cancelled in November, if they don't have a residential address in the UK.
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Old Sep 16th 2020, 8:02 am
  #35  
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Default Re: Moving to France

Originally Posted by Xendo
Information from Connexion says that French resident users of Barclaycard will have their cards cancelled in November, if they don't have a residential address in the UK.
I guess the question is, will other card providers follow suit, and will other banking services besides credit cards also be withdrawn?
I don't see it will cause any great hardship not to be able to use a UK credit card if you live in France, but not having access to any UK banking facilities at all could be a problem.

Thinking about it, it probably was an anomaly that Brits living in France had access to credit from providers that aren't subject to France's credit regulations. France has brought in tight regulations over the last decade or so to stop individuals and households falling into the credit trap, but you could have bypassed all the rules if you had UK credit cards etc.
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Old Sep 16th 2020, 11:16 am
  #36  
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Default Re: Moving to France

Originally Posted by EuroTrash
I guess the question is, will other card providers follow suit, and will other banking services besides credit cards also be withdrawn?
I don't see it will cause any great hardship not to be able to use a UK credit card if you live in France, but not having access to any UK banking facilities at all could be a problem.

Thinking about it, it probably was an anomaly that Brits living in France had access to credit from providers that aren't subject to France's credit regulations. France has brought in tight regulations over the last decade or so to stop individuals and households falling into the credit trap, but you could have bypassed all the rules if you had UK credit cards etc.
Exactly
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Old Sep 16th 2020, 4:14 pm
  #37  
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Default Re: Moving to France

ET & DMU,
Thank you for your feedback on posts #19, 20, 21.
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