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Discussion Starter · #1 ·
Hi everyone,

I moved to France from the UK in June 2011 for a new job. I didn't research the issue as thoroughly as I should have, but I was confidently informed by friends that if I lived and worked in France for a French company, I would pay income tax in France, and a cursory glance at expat sites seemed to confirm this.

However, I have now discovered that unless I remain in France until April 2013 (ie a complete UK tax year) I am considered UK resident and am also subject to income tax in the UK for all my earnings, with French taxes offset by UK tax credit. I cannot say for certain if I intend to remain for that length of time - I would say that at this point it's fairly unlikely (my girlfriend's having some difficulty following me out here so I expect that I will probably have to return to the UK).

This is a pretty serious financial blow for me as I had budgeted for French tax and in my case the UK tax is likely to be around three times as much (due mostly to the French social security charges), meaning that I suddenly have to find an extra few thousand pounds.

I don't want to come across as a tax dodger, but I really can't see what my income here has to do with the UK. What's the difference for the UK economy if I'm sitting in my parents' house not working and not claiming Jobseekers, or living and working in a different country? Certainly not thousands of pounds. Furthermore, it seems to me that they are basically taking whatever money the French don't want, which exposes the lie that they actually need it for something (since if French taxes were higher my UK bill would be zero).

So... does anyone know of a way I can avoid this?

The only possible way out that I can see is to classify as French resident under the tiebreaker clauses of the Double Taxation Convention, but I'm not convinced that I do.

For anyone else from the UK who is thinking of working in France - this is a lot more complicated than common sense would dictate, and the Double Taxation Convention is not much comfort. I am happy to provide more information on my experience if it's of use to anybody.

Thanks,

Simon.
 

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Hi everyone,

I moved to France from the UK in June 2011 for a new job. I didn't research the issue as thoroughly as I should have, but I was confidently informed by friends that if I lived and worked in France for a French company, I would pay income tax in France, and a cursory glance at expat sites seemed to confirm this.

However, I have now discovered that unless I remain in France until April 2013 (ie a complete UK tax year) I am considered UK resident and am also subject to income tax in the UK for all my earnings, with French taxes offset by UK tax credit. I cannot say for certain if I intend to remain for that length of time - I would say that at this point it's fairly unlikely (my girlfriend's having some difficulty following me out here so I expect that I will probably have to return to the UK).

This is a pretty serious financial blow for me as I had budgeted for French tax and in my case the UK tax is likely to be around three times as much (due mostly to the French social security charges), meaning that I suddenly have to find an extra few thousand pounds.

I don't want to come across as a tax dodger, but I really can't see what my income here has to do with the UK. What's the difference for the UK economy if I'm sitting in my parents' house not working and not claiming Jobseekers, or living and working in a different country? Certainly not thousands of pounds. Furthermore, it seems to me that they are basically taking whatever money the French don't want, which exposes the lie that they actually need it for something (since if French taxes were higher my UK bill would be zero).

So... does anyone know of a way I can avoid this?

The only possible way out that I can see is to classify as French resident under the tiebreaker clauses of the Double Taxation Convention, but I'm not convinced that I do.

For anyone else from the UK who is thinking of working in France - this is a lot more complicated than common sense would dictate, and the Double Taxation Convention is not much comfort. I am happy to provide more information on my experience if it's of use to anybody.

Thanks,

Simon.
Hello Simon, I read through I am a bit afraid. My spouse left Uk to work in France since 2010. We are planning to return to Uk by the end of this year 2012. What will now happen, will my spouse be require to pay another Income Tax for all the earning in France since 2010 when we return to the UK?
Please let me know from whatever you have experienced on this type of situation. Really appreciate your quick responds.
 

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My understanding is that you are supposed to notify the UK tax authorities when you leave the UK if your intention is to take up residence in France (or another country). This allows you to switch your tax status to "non-resident" in the UK for your time abroad. If you haven't done this, you may run into problems on your return.
Cheers,
Bev
 

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My understanding is that you are supposed to notify the UK tax authorities when you leave the UK if your intention is to take up residence in France (or another country). This allows you to switch your tax status to "non-resident" in the UK for your time abroad. If you haven't done this, you may run into problems on your return.
Cheers,
Bev
Hello Bev, thanks for your reply. Have I taken up resident in France, I am about to clock 3years in France. Do I need to call Uk tax authorities now or wait till I move back at the end of this year. What are the likely problem I may encounter? Please shed more light for me on this. But, France has been deducting tax from my earnings in France, am I going to face another tax deduction when I get beack to UK from all the work I have done in France? I a bit afraid!! Please I need an your advice or any member of the forum that has experience this, please shed more light on this.
Another question. Is it compulsory that my non eu spouse should apply for a Family Permit here in Paris for our return to Uk or we may apply at the port of entry for the entry clearance with his resident card, EU Family Card in Calais? Any members experience will highly be appreciated.
Cheers,
Walex
 

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Discussion Starter · #5 · (Edited)
Hi,

The outcome in my case is that I am definitely liable for UK income tax (although I get a credit for French tax, so I don't have to pay twice).

However, the reason for this is that I have not been non-resident for a full UK tax year (April-April). This doesn't apply in your case, so I imagine that there is no tax liability (unless you do any work in the UK, although I don't know the rules for that).

To be sure, I would suggest contacting HM Customs and Revenue directly rather than trying to work it out from the internet. They were very helpful in my case, even though the answer wasn't the one I wanted... :)

My problem is not related to a failure to notify the UK authorities of non-residency (I don't believe that there is a time limit on that, as you don't always know how long you'll be gone for), it is due to the fact that I do not qualify for non-residency at all. I believe that you can get into trouble if it turns out that you failed to declare taxable income (so, for example, if I didn't file a tax return this October and proceed to pay what I owe in January, I would be subject to normal late payment fines when they caught up with me), but since in your case you probably won't owe anything, I doubt there will be any problems.

In summary: Call HM Customs and Revenue to be certain of your tax liability, but I would guess that you're OK. Sorry if I panicked you. ;)

Hope that helps,

Simon.

Edit: I should clarify, I am now definitely returning to the UK, next month (May 2012). If I was intending to stay past April 2013 (and thus in France the whole tax year April 2012-April 2013) I believe I would avoid UK tax for the entire period (going right back to June 2011).
 

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Hello Bev, thanks for your reply. Have I taken up resident in France, I am about to clock 3years in France. Do I need to call Uk tax authorities now or wait till I move back at the end of this year. What are the likely problem I may encounter? Please shed more light for me on this. But, France has been deducting tax from my earnings in France, am I going to face another tax deduction when I get beack to UK from all the work I have done in France? I a bit afraid!! Please I need an your advice or any member of the forum that has experience this, please shed more light on this.
Another question. Is it compulsory that my non eu spouse should apply for a Family Permit here in Paris for our return to Uk or we may apply at the port of entry for the entry clearance with his resident card, EU Family Card in Calais? Any members experience will highly be appreciated.
Cheers,
Walex
If you've been living and working in France for three years, there shouldn't be a problem. As Simon said, you've been out of the UK for well more than a full UK tax year (April to April).

As far as the EEA family permit goes, you may want to pose this question on the British section of the forum. If you have British nationality, I'm not sure the EEA family permit option is open to you - but the folks over on the British expats section will be better able to advise you.
Cheers,
Bev
 
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