Job offer questions: I'm lost!

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Job offer questions: I'm lost!


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Old 9th December 2012, 07:33 PM
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Default Job offer questions: I'm lost!

Hi all,

I have been offered a job in Paris to start next year. I am keen to accept but I have a few questions, I think they may well be fairly generic, so apologies if they echo previous posts.....

1) I have been offered 29000E p/a gross, what would my take home wage be per month? I know that you pay two different amount, one monthly (which is taken before you receive your pay) and one at the end of the year (tax) so how much would be taken in tax? There are a lot of calculators online but I'm struggling to find a consistent answer.

2) I have been given the option to either work on a French work contract (unclear whether CDD or CDI, or if that is even applicable-like I said lost.....) or as UK freelancer. Besides the job security aspect, which would you guys recommend? Does anyone on the forum do this already, how are you finding it? Any pitfalls I should be wary of?

I'm sorry if my questions are a bit open-ended or generic!

Thanks in advance for any help or suggestions.......

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Old 9th December 2012, 08:09 PM
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Hello

I can't help you with the details of French employment law (well I could, but I might be wrong, and that's no use to you!).

May I suggest that your questions are perfectly valid, and you should ask them to your future employer. If it has a RH dept (HR or Human Remains in English) then ask someone there, it might be easier than asking your future boss.

My sole firm advice is that you have the answers in detail, in writing, and that you are happy with them. Health insurance, pensions etc colme into play, and may also depend on where you are fiscally resident.

DejW

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Old 9th December 2012, 09:01 PM
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Figure on about 22 to 25% taken from each monthly pay packet for "cotisations" (which are basically your social insurances - health, retirement, "prévoyances" and family allocation). Income taxes are settled up in the following calendar year - you file your declaration in May and receive your tax assessment in the August/September time frame. After that, you have something like ten months to settle up (monthly or quarterly payments) and then the cycle starts again.

The employer does not get involved with your income tax situation at all. That's between you and the fisc - and depends on lots of factors, including your family situation (married, single, kids, etc.), other worldwide income and any applicable credits or deductions.

Personally, I'd rather be on the local (i.e. French) payroll, simply for simplicity's sake. That way you're covered by the French benefits system, without the need to "transfer" eligibility from the UK and all the uncertainty that involves. Employers, however, hate that option because it's more expensive for them. French cotisations run an employer about 40% of the gross salary - allegedly the highest in Europe.

If you decide to go the contractor route, be sure to figure in whatever professional expenses you'll be picking up yourself. Things like having to supply your own office supplies, travel expenses, office equipment or anything else you'd normally get from your employer.
Cheers,
Bev

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Old 9th December 2012, 09:28 PM
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In addition to what Bev has already sensibly said, if you're renting a flat and working from home, you may find that you can't run a business from it (even self-employed, all over the net, whatever) and your insurances may be higher.

Sorry if that's not very good news, 'cos it's hard enough as it is to find a flat as an "immigrant", but you do need to take it into account.

H

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Old 10th December 2012, 10:52 AM
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Quote:
Originally Posted by Bevdeforges View Post
Figure on about 22 to 25% taken from each monthly pay packet for "cotisations" (which are basically your social insurances - health, retirement, "prévoyances" and family allocation). Income taxes are settled up in the following calendar year - you file your declaration in May and receive your tax assessment in the August/September time frame. After that, you have something like ten months to settle up (monthly or quarterly payments) and then the cycle starts again.

The employer does not get involved with your income tax situation at all. That's between you and the fisc - and depends on lots of factors, including your family situation (married, single, kids, etc.), other worldwide income and any applicable credits or deductions.

Personally, I'd rather be on the local (i.e. French) payroll, simply for simplicity's sake. That way you're covered by the French benefits system, without the need to "transfer" eligibility from the UK and all the uncertainty that involves. Employers, however, hate that option because it's more expensive for them. French cotisations run an employer about 40% of the gross salary - allegedly the highest in Europe.

If you decide to go the contractor route, be sure to figure in whatever professional expenses you'll be picking up yourself. Things like having to supply your own office supplies, travel expenses, office equipment or anything else you'd normally get from your employer.
Cheers,
Bev
Thanks to you all for your feedback, appreciated. Bev, thanks again, can I just clarify this please? So in the first year, I'll pay around 22-25% for the non tax stuff, then be given a retrospective amount at the end of the year, for the previous year, to be paid in the next year. So will that mean that in year 2 I 'll lose around 22-25%, and in the second around 40-50%, with the cotisations for that year and the tax for the previous year? Is that correct? Or is your tax amount lower than in the UK (I'm basing it on a rough 20% figure in the UK) Thanks in advance!

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Old 10th December 2012, 11:34 AM
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For your income the French tax rates for 2013 earnings are:

Up to €5,963 0%
Between €5,964 - €11,896 5.5%
Between €11,897 - €26,420 14%
Between €26,421 - €70,830 30%

This should mean approx 3 150 euro tax. Unlike PAYE in UK there are a few things you can claim against tax to reduce this a bit more

UK freelance in France for around 30k seems awfully messy depending on how its set up unless it's only short term.

Good luck

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Old 10th December 2012, 12:01 PM
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Quote:
Originally Posted by Lost in Traduction View Post
For your income the French tax rates for 2013 earnings are:

Up to €5,963 0%
Between €5,964 - €11,896 5.5%
Between €11,897 - €26,420 14%
Between €26,421 - €70,830 30%

This should mean approx 3 150 euro tax. Unlike PAYE in UK there are a few things you can claim against tax to reduce this a bit more

UK freelance in France for around 30k seems awfully messy depending on how its set up unless it's only short term.

Good luck
Sorry, I forgot the tax threshold, so in fact the tax should probably be about 2 000euros. Try this site or Google: French Income tax rates

Income Tax France: French Income Tax Rates

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Old 10th December 2012, 02:43 PM
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Thanks for this, just to clarify, I'll pay 22-25% in my first year, then 22-25% in year two, and also 2000E? Is that correct?

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Old 10th December 2012, 03:17 PM
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Unfortunately, it's not as simple as that. For an overview of French taxes in English, try this: http://www.impots.gouv.fr/portal/dep...ptive_1006.pdf (Only the part on income taxes is worth bothering with for the moment.)

When figuring your income tax using the rate chart, you have to start with about 2/3 of your gross salary. This is because you get to deduct your cotisations and then you get another reduction of about 10% of what's left to get your starting figure. There are other deductions you'll learn about as you go along.

It's kind of confusing at first, but the first year, you have your cotisations deducted from your paycheck. That's the easy part.

In May of year 2, you file your declaration for year 1 in May (or June) and get your tax bill in August or September, when you start paying your Year 1 taxes.

In May of year 3, you file your declaration for year 2 in May, and start making payments on year 2 based on what your actual tax bill was for year 1. You get your bill in August/September and settle up for the difference between what you've already paid on Year 2 (based on Year 1) and what your actual Year 2 bill was.

And on it goes. Somehow, you're always a year or two behind in what you're paying.

But your income tax payments go directly to the Fisc, with no involvement from your employer.
Cheers,
Bev

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Old 10th December 2012, 03:31 PM
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Thanks Bev, this is a really great help!

So: Year 1: figure on about 22-25% only.
Year 2: Figure on 22-25% plus income tax on around 2/3 of year 1 salary (minus around 10%)
And so on and so on. Am I on the right lines?

Cheers!

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