Seconded Worker Salary & Banking Query

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Seconded Worker Salary & Banking Query


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Old 3rd September 2018, 09:33 AM
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Default Seconded Worker Salary & Banking Query

Hello,

I am looking for some advice on the best option regarding my salary and banking as a UK worker on a secondment in France. I am due to be posted to a sister company in France on a 12-month project, during this time I will remain an employee of the UK company but work at the French site. What is the best way for me to receive my salary without losing out with exchange rates or charges?

1. Employer continues to pay into my UK account, I set up a French account and transfer money over as I need - I will be subject to an international transfer fee for every transfer & be subject to my bank's exchange rate.

2. I set up a UK and French account with an international bank such as HSBC who do not charge for transfers between the two?

3. I set up a French account and my employer pays directly into this - how do I know what rates I will get etc.?

Or any other options which I can arrange with my company to help avoid losing out on my salary?

Many thanks,
Lewis

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Old 3rd September 2018, 05:01 PM
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Just my opinion, with all things being equal I would rather be paid in euros as the pound will be further devalued as Brexit approaches.

And, while HSBC may not charge a fee on those transfers I suspect they're taking a big cut into the exchange rate. I'd suggest using a currency transfer firm, like ones recommended here: www.monito.com
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Old 3rd September 2018, 07:23 PM
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You may well be seconded to France and paid in the UK - but you need specialist advice as to where and how you will be taxed. Everyone wants their slice.

The worst case scenario is that you get taxed at the highest rate applicable in either country. Except what makes it even worse... you will probably need to pay fees to two sets of accountants to tell you this (and pay it correctly).

Regarding cash transfer, don't get robbed by your bank. Use a specialist service like TorFX or Transferwise. No fees, good exchange rates, all done online.

Regards



Ian
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Old 3rd September 2018, 08:05 PM
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The other thing to consider is where you will pay taxes. It sounds very much like you will be subject to French taxes (and possibly French cotisations) during your secondment. While your employer can possibly keep you on British social insurances, the French income tax rules are pretty simple. If you are working in France and maintain your residence there during your secondment, chances are you'll be on the hook for French taxes.

Where you are paid really has no impact on your tax situation, so you'd do better to be paid in France into a French bank account. (You'll need a French bank account for rent, utilities and other charges anyhow.)

Once you return to the UK, you can transfer any remaining balance back to your UK account in one fell swoop for a single transfer fee.
Cheers,
Bev

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Old 9th September 2018, 12:45 PM
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Thank you all for the replies.

My main concern was the devaluing of the pound with Brexit. I've asked my company to review the option of paying my wages in euros.

The double tax situation is a little confusing, my understanding is that as I will be working and residing in France I will be subject to French income tax. So I have to fill in the P-85 form to claim tax relief from HMRC? My company is being flexible, I am meeting with them to draw-up an agreement whereby if I am out of pocket due to incorrect taxation they will cover the amount and expenses to have it resolved.

Thanks,
Lewis

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Old 9th September 2018, 01:03 PM
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Quote:
Originally Posted by Lewis Lovie View Post
The double tax situation is a little confusing, my understanding is that as I will be working and residing in France I will be subject to French income tax. So I have to fill in the P-85 form to claim tax relief from HMRC? My company is being flexible, I am meeting with them to draw-up an agreement whereby if I am out of pocket due to incorrect taxation they will cover the amount and expenses to have it resolved.

Thanks,
Lewis
You've probably read this guidance but if not, it might be helpful
https://www.gov.uk/working-abroad/tax

Good luck with negotiating with your employer to pay you in euros. It's a gamble either way of course but I think you're probably right that this would be better for you - depending of course on what they offer as the euro equivalent of your sterling salary but from what you've said it sounds like they are good guys.

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