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Discussion Starter · #1 ·
Good evening guys.

I have asked a lot of colleagues and researched on several forums but I remain unclear on a few things so i hope you can help.

Heres my situation:

I'm currently a UK resident (have been since birth) and my job involves travel throughout Europe. On 11th Nov my family & I move to France. House is sold and we will live in a Gite for the 1st month while we organise a long term rental.

My employer has insisted that I remain on a UK contract for 2 years and THEN move over to a French one. They are holding off the French contract because of a few of reasons 1) I requested the move 2) It allows them to see if i really like it in france 3) the severance package is much better. Apparently I will pay my taxes in the UK and the company can legally do this for 2 years because I will be on a 'assignment contract'. Apparently they have done their homework and I wont end up paying 2 lots of tax......fingers x'ed!

I assume that everything will be 'as is' in terms of UK PAYE, NI deductions at source etc. I say assume because its all being finalised right now.

If the above situation comes off will it mean I cannot join the French medical system until after 2 years? If so what are the other complications of this ie will it hold up my ability to rent a house or send my children to school?

A colleague told me to look into the E101 and 106 forms but Im nervous of telling either authority about my situation until I know things in full.

hoping you can help...
 

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I imagine that it would be classed as a "posting abroad" - the EU regulations are explained here

EU - Workers on a posting abroad – Formalities, rights and conditions - Your Europe  

including both the employer and employee obligations, it all sounds fine and looks like your employer is on the ball and as long as you complete all the formalities, there should be no problems on the French side with healthcare, schools, tax etc.

Good luck - hope it all works for you
 

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Discussion Starter · #3 ·
Hey thanks so much for the speed reply. In fairness my employer are pretty on the ball and the HR guy for EMEA is French so he should know his stuff.

I'll dive into the link you kindly gave.

thanks so much
 

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One thing to be aware of is that on a French contract the employer contributions (for things like healthcare, pensions, national insurance equivalents, etc.) are about 50% of gross salary, whereas in the UK they add up to about 26% (I think my memory is OK here but I haven't dealt with this for about 8 years). So, your employer is rightly cautious about transferring you onto a French contract. So from that angle, your employer may ask you to take a pay cut if you transfer onto a French contract as the costs of employment are so much higher here. Something to bear in mind . . .
 

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Discussion Starter · #5 ·
I have been made aware that there will be some 'on costs' for the company. Im not actually sure at this stage if these on costs are related to employer contributions or consultation fees but they are going to absorb them. The problem I have is that I haven't actually seen the contract I will get 2 years down the line :(

Im moving over 'blind' in effect. They could do exactly as you indicate. Naive I know but I'll move on by then ;)

Could you help me with a further couple of Q's? My wife's situation is different. She's walking away from 21 years in the NHS and has gone onto a 5 year career break. I assume she should immediately inform the Tax Office and freeze her pension. what will she need to do in relation to he UK state pension? etc
 

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I believe you would need to inform the tax office that your wife is no longer UK tax resident using form p85
http://www.hmrc.gov.uk/cnr/p85.pdf

For the UK state pension, if she does not have enough NI contributions for a full pension, then she can continue to pay voluntary NI whilst abroad (and not working) to keep up her entitlement. Details here

HM Revenue & Customs: Voluntary National Insurance contributions if you live abroad

it is not overly costly and certainly worth it in the long run - assuming the UK continue to pay state pensions in the future ;o)
 
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