What should I do? Self-employed
Aug 14th 2015, 8:31 am
#16
BE Enthusiast
Joined: May 2009
Location: Lot et Garonne
Posts: 576
Re: What should I do? Self-employed
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.
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.
Aug 14th 2015, 8:39 am
#17
Just Joined
Joined: Aug 2015
Posts: 4
Re: What should I do? Self-employed
Thanks very much for the advice I will take heed, sources of info have been my accountant in the UK and people here with AE status..will check up and make sure I am legal....
Aug 14th 2015, 9:11 am
#18
BE Enthusiast
Joined: May 2009
Location: Lot et Garonne
Posts: 576
Re: What should I do? Self-employed
If you live in France and spend more than half the year here, you need to pay your taxes here or you are illegal. Otherwise everyone would set up their businesses overseas and pay lower taxes and France would receive none.
Aug 14th 2015, 9:48 am
#19
BE Forum Addict
Joined: Apr 2009
Location: Scotland & Touraine [37]
Posts: 3,026
Re: What should I do? Self-employed
If you live in France then you are tax resident from day 1 for any earned income.
If you live in France but have no earned income then the 183 day rule applies.
If you have a home in both countries and you have no earned income (e.g. only pension) them you are considered to resident in the country of your nationality.
There are a series of tests that can be applied to decide tax residency and the 183 day rule is only one of these.
French accountants will tell you that it is the 183 day rule because that is the french rule.
The French - UK Double Taxation Convention lays down the rules for UK or French citizens and these rules overrule the individual national rules.
https://www.gov.uk/government/upload...884/france.pdf
This Treaty has different chapters depending on your circumstances.
Aug 14th 2015, 9:55 am
#20
Just Joined
Joined: Aug 2015
Posts: 4
Re: What should I do? Self-employed
I am not currently taking a salary from my UK company, which explains my position more clearly, although obviously I need to check in more detail to ensure that my situation is legal...
Aug 14th 2015, 2:29 pm
#21
Austin. TX.
Joined: Sep 2013
Posts: 5,930
Re: What should I do? Self-employed
Of course this is possible. A company is a separate entity on it's own and can be located anywhere. It's your role in it and your status regarding tax and social security in France that you need to be v careful about - it is almost impossible to avoid those responsibilities esp if you are a director of your company. Please take advice from an accountant and if you have already then get everything in writing from them so that you are clear what your responsibilities are and to offer a little bit of protection should you get in hot water.
Aug 14th 2015, 3:09 pm
#22
BE Forum Addict
Joined: Apr 2009
Location: Scotland & Touraine [37]
Posts: 3,026
Re: What should I do? Self-employed
Not sure about company shares although I assume that they would be included.
If you take a dividend in the UK then you will receive a tax credit certificate equivalent to the Corporation Tax already paid. This means that in the UK basic rate taxpayers pay no further tax and higher rate taxpayers pay the difference between the tax already paid and their marginal tax rate.
I do not think that tax credit certificates are recognised in France.
Be aware that the advice you get from either a UK accountant or a French accountant may not be correct. They will give you their countries view.
You need to consult someone familiar with both tax regimes.
Good luck
