Bear shroom

hi all,

My husband is applying for a job which would take us to live in Toulouse for approx 5 years.

The job is with an English company.

My issue is that I run a small 'one man band' business here in the UK that I could maintain over in France but obviously don't want to get into bother with tax. As we would be coming back to the UK and will keep our home here could I still run my business from the UK? All business will still be in £'s but obviously I would be sitting at a computer in France!!

Help please! From what I have read so far, I'm wondering whether to just give it up should the opportunity of moving arise.

Tweedpipe

Welcome to the forum.
If you wish to work from home whilst in France, you will have to set up some kind of business structure. Start by doing a search for comment démarrer une entreprise and read up on what's required, legal and social payments etc...).
Others should be able to provide more detailed info if you have further questions.
(Auto-Entrepreneur may well be the simplest business regime given your suggested 'on-line' business).

petitefrancaise

You are lucky,there is quite a dynamic english speaking group of women small business owners in Toulouse. YOu would have to set up in France (probably as "autoentrepreneur") but it is do-able.

Airbus??? Try the FB page for the area
https://www.facebook.com/groups/247856731993140/

loy loy

Unfortunately as you will be living in France you will need to join the system and pay taxes here :-(

If you earn under something like 32,000 and have more than one client you can go AE. My wife is doing it at the moment.

Otherwise you will need a different structure and I would get an accountant to help you.

Charlottegarvey

Hi I'm just setting up my business here, as an auto entrepreneur. Taxes are 22.9% on everything you earn. It's quite alot. I am moving to Toulouse this month where abouts are you living? X

loy loy

Those taxes include the equivalent of you NI contributions too, that's all your social and taxes. I won't tell you what I'm paying if you think that's a lot!

EuroTrash

Actually I think the 22.9% IS social contributions, pretty much. If you opt to pay income tax quarterly at a fixed rate, I believe it brings the rate up to 24.something per cent.
Depending of course on whether you're classed as an artisan, a commerçant or a profession libérale, because the rates are different for each activity.
Or you can just pay the social contributions quarterly and sort out the income tax at the end of the year.
I assumed charlotte is from across the pond, because Americans always seem to call 'social contributions' 'taxes', which we Brits often find confusing because to most of us, 'taxes' means 'income taxes'.

loy loy

I think I read in Feb next year the tax/soc system is going to be revised, so you no longer pay your contributions in arrears. It will be more pay as you earn?

EuroTrash

I thought the new thing was all about employees' income tax. Their social contributions are paid monthly in any case, deducted from their bulletin de salaire.
There is also talk about rethinking the way charges are levied on businesses but I think that's a separate project.
Either way I don't see auto entrepreneur, or entreprise individuelle as it's supposed to be called now, changing much, since it's pretty much PAYE already. Maybe what will happen is that other businesses will be brought more into line with the old AE model.
You just don't have to compare social charges France v. UK. It can quite easily work out at x50 or more. Crazy, isn't it.

loy loy

I found the article.

Workers in France to pay no tax for 2017 but... - The Local

Ligs

My advice, think long and hard before getting caught up in French business admin...RSI, URSSAF, it can be a nightmare, we had a French company for 8 years. it is also a lot more expensive that having a UK company. NB: You can only be an Autoentrepreneur for 3 years.

I now run a UK company and I live in France, you just need to be sure to be covered healthwise etc. Will your husbands employer in France be covering health insurance etc.

For tax purposes, to my understanding you can declare to either the UK or France, depending on where you want to pay your taxes. If you are definately returning to the UK, I would pay tax in the UK, better for your pension.

Tweedpipe

Welcome to the forum.

Ligs

I had thought that there was a 3 year limit, my apologies if this is not the case, I could easily be wrong and it might be something that has been talked about but not yet been instigated.

See this link for more information.

The pitfalls of France's auto-entrepreneur status - The Local

Tweedpipe

Link HERE re no AE time limit.

'Par défaut, il est vrai (actuellement) qu’il n’y a pas de vraie limite de temps pour bénéficier de ce régime et rester auto entrepreneur.'

EuroTrash

Just to clarify a few things.
I wouldn't say running a business in France is a nightmare exactly, but the system is very different from the UK, and less sympathetic, so you do need to understand it and adapt your business accordingly. Yes you pay more in charges, so you just build that in to your pricing.
No time limit for AE.
EU law is very clear that you must join the social security system of the EU state where you live and work. French law is equally clear that if you live and work in France you must join the French social security system, and in fact it's in the process of taking to court a group of rebels who refused to do this. So living in France and running a UK business with no business structure in France isn't a great idea - as far as France is concerned it's fraud, and the penalties if picked up on could be large. Certainly larger than the sum you'd have paid in cotisations.
You can't choose where you pay tax, there are tax treaties that detail very clearly where tax is paid in different circumstances.
Please watch your back as you seem to be ignoring all kinds of legislation, and could I suggest that you get info from the official sources not from places like The Local - your obligations as regards taxes and social security are all set out online.