Tax Status Query

[EmmaBush]

Hello,

I have moved to Paris to find a job as an architect and have been offered a position this week.

However the firm wants me to continue paying taxes in the uk instead of France. Tthis is what they wrote:

"We were wondering about the status in which you could work, one
possibility for you is to be an independent paying your taxes in the UK,
this is good as the social charges will be less for you as well as for
us and you will be able to gain more."

Is this true? Does it mean I would be registered as self-employed in the uk?
I've tried to find out on the reveue and customs website but am a bit confused...

any advice/ideas?

Thanks!

[Stravinsky]

Originally Posted by EmmaBush

Hello,

I have moved to Paris to find a job as an architect and have been offered a position this week.

However the firm wants me to continue paying taxes in the uk instead of France. Tthis is what they wrote:

"We were wondering about the status in which you could work, one
possibility for you is to be an independent paying your taxes in the UK,
this is good as the social charges will be less for you as well as for
us and you will be able to gain more."

Is this true? Does it mean I would be registered as self-employed in the uk?
I've tried to find out on the reveue and customs website but am a bit confused...

any advice/ideas?

Thanks!

Bev will be along soon no doubt, but the general rule of thumb would indicate that you would be a French resident, earning your money in France and therefore you should pay your taxes in France.

As a French resident you would be paying NI in the UK for a service you could no longer use as you wont have access to the NHS any more. What happens if you are taken ill in France, and have no access to the French health system or the UK system?

Its probably in the companies interests financially to have you working this way I would guess

I'm sure Bev will know more

[Bevdeforges]

Basically what Stravinsky said.

There is a general belief in France amongst some folks (particularly small employers) that "registering" in the UK brings significant benefits - both to the employer and employee. But, for you to actually be an independent in the UK, you would have to somehow maintain your residence there - which means having other clients, maintaining a home there (and having your family living there) so that you could continue to use the NHS and other British services. If you're planning on living in France, you'll be subject to French taxes and cotisations.

Mainly, your would-be employer is looking to save himself social charges. While you will have about 20% of your salary withheld for social charges, the employer then ponies up another 40%. Being on a CDI (permanent employment contract) also means that you are covered by the various protections of French labour law. As a "contractor" like they are suggesting, they could be shed of your services pretty much at their pleasure - as you'd be no more than a "vendor" of services to them.

Normally, I'd say run like hell from these cowboys - but you'll find that most of France thinks like this. You might want to remind them that, if you bill them as an independent contractor resident in the UK, they will be expected to include the charges on their VAT declaration and pay VAT at French rates (which are higher than the UK rates) on anything they pay you based on invoices. Maybe that will convince them that their scheme is not in their best interests.
Cheers,
Bev

[giantpanda]

Hi!

As already mentioned, once you work in France, you need to pay French Social Security., and further you become a French fizcal resident ( NB. one can be fiscal resident in several countries at the same time ). It just means you have to declare your world income in each country, with possibily the taxed paid. i.e. for wages and salaries, you would be taxed twice.

Either you are an employee, then it it your firm that has to pay these. it can be done by a GB firm - best it to operate over a "société de portage" - but generally most GB firms will not like this.

Or, you are independant, and you have to have to register as " profession libérale ", and you will be fully responsible for the charges. This can be an uncomfortable situation when you have a small turnover, because there are minimum charges.

Yours,

giantpanda

[EmmaBush]

Thanks for all you advice!
I'm going in to talk to them tomorrow so we'll see what happen....

Emma