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   19/05/2008, 16:05
Deborah is not online. Last active: 19/05/2008 13:32:24 Deborah

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2007 tax return for wife living in France, husband commuting to UK during the week
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Help!  Has anyone any up to date advice/experience of completing tax return in the above situation?  I am here permanently, my husband is here at weekends only. This is my first decalarion and I have forms 2047, 2042, 2042 complementaire, 3916, and FD5 and an R43 - is this it and am I correct in thinking they all need to be completed?

RE 2047 and 2042 - Do I also put my husbands details on these forms even if he is resident in UK for tax purposes? 

RE: INCOME

1/ I have no income here except for a small amount of bank interest earnt in UK which I know I have to declare; also small amount of Livret B interest also will be declared

2/ my husband sends money monthly to pay our french mortgage and living expenses which I was verbally told at the tax office that I neednt declare - is that correct/do I need to put explanation on any of the forms?

3/ further complication is that he is a restauranteur in the UK but the restaurant has been closed for renovation since Jan 2007 and so he has not been earning a wage nor paying NI during that time...

Finding forms very hard so once I am armed with relevant information, I think I will go in and ask them to help me to complete forms.

Any advice would be most gratefully received - thanks, Deborah


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   19/05/2008, 17:37
cooperlola is not online. Last active: 03/07/2008 10:06:41 cooperlola



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Re: 2007 tax return for wife living in France, husband commuting to UK during the week
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Is your husband a resident here (not for tax, but in general terms - ie is his permanent home here?).  If yes, then both of you go on the tax form, although under the dual agreement, he will not pay tax here, although possibly some social charges on "unearned" income.  This would solve problem number 2 imo as it would be self-evident where the money for the mortgage etc comes from.  But somebody on here must be in a similar situation and hopefully will have a better answer for you!

If he is not paying NI in the UK, then how are you covered for healthcare here?  Normally, you would be covered by an E109, but presumably you can't have one if he's not an NI contributor at present?  If this isn't sorted, then I'd get onto it if I were you, as an EHIC is not valid in your circumstances.


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   19/05/2008, 18:03
Sunday Driver is not online. Last active: 08/07/2008 07:32:43 Sunday Driver



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Re: 2007 tax return for wife living in France, husband commuting to UK during the week
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You say that your husband sends money monthly to pay your French mortgage and living expenses.  How has he been doing this during 2007 when he has not been earning a wage or paying NI?

That's a substantial discrepancy that the tax office are bound to query.

 

 


Waddya mean it's only Saturday......
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   19/05/2008, 19:12
Will is not online. Last active: 22/04/2008 12:26:55 Will



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Re: 2007 tax return for wife living in France, husband commuting to UK during the week
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Do you do any work in France? That will make a big difference to your situation. (edit - just noticed you say you have no other income in France, so presumably not).

Your husband will be regarded as French tax resident because his close family (i.e. you) lives in France - and possibly on other grounds too - in France you are taxed as a couple, not as individuals as in Britain. He may well also be considered UK tax resident, and the double taxation agreement will determine where tax on any particular sum will be paid.

You will probably find the French tax office helpful, but don't expect the officials there to speak fluent English, or even to have a lot of time to assist you as this is a busy time of year for them.


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   20/05/2008, 10:25
Deborah is not online. Last active: 19/05/2008 13:32:24 Deborah

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Re: 2007 tax return for wife living in France, husband commuting to UK during the week
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HI Cooperlola - husband's permanent home is here although he lives in rented accommodation in the UK during the week. So guess I put his details on the form....

I had an E106 on the relevant date last year so have been able to affiliate to CMU with that. 

One other thing you may be able to help with - as the UK financial year is April/April and the French is Jan/Jan, for purposes of reporting interest earnt on UK accounts, is it okay just to declare the yearly total or should I get a monthly average for each UK tax year and apply that to the French financial year?

Thanks for your advice so far

Deborah


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   20/05/2008, 10:28
Deborah is not online. Last active: 19/05/2008 13:32:24 Deborah

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Re: 2007 tax return for wife living in France, husband commuting to UK during the week
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Hi Sunday Driver - well its been difficult but basically we have lived off savings, friends and compensation payments from the main developpers of the project due to the project delay (which will have to be unravelled with the UK tax authorities at some stage).....
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   20/05/2008, 10:33
Ron Avery is not online. Last active: 07/07/2008 19:11:14 Ron Avery

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Re: 2007 tax return for wife living in France, husband commuting to UK during the week
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"One other thing you may be able to help with - as the UK financial year is April/April and the French is Jan/Jan, for purposes of reporting interest earnt on UK accounts, is it okay just to declare the yearly total or should I get a monthly average for each UK tax year and apply that to the French financial year?" 

 The latter, you should report the income received in the year being taxed Jan 1 to Dec 31 2007, starting from the date you moved to France.


Why not just post a sensible answer, people will appreciate it more


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   20/05/2008, 11:04
ErnieY is not online. Last active: 08/07/2008 06:08:50 ErnieY



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Re: 2007 tax return for wife living in France, husband commuting to UK during the week
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This does seem a bit of an odd situation.

It seems clear that hubby is self employed in which case it's probable that he's not entitled to an E109 or E106 and therefore the E106 you say you have has been granted on the basis of your own NI record. Correct ?

Without an E form he will not be entitled to French health care so is he still covered on the NHS or has he told HMRC/DWP that he now resides in France, and if the latter, does he have private cover. If he's still under the NHS then he must be considered UK resident. It has to be one or the other.

Q: can a husband piggy back onto a wifes E106 in this sort of situation, I'm not sure.

With the greatest respect I have to say frankly that this whole scenario is beginning to look like a bit of a minefield and if you haven't already done so (and from what you've said so far it definately sounds like you haven't) in your position I think I would be seeking some professional advice, and not just about the tax forms Blink [blink]

 


My doctor said one drink per day, I can live with that !
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   20/05/2008, 11:23
cooperlola is not online. Last active: 03/07/2008 10:06:41 cooperlola



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Re: 2007 tax return for wife living in France, husband commuting to UK during the week
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Ernie is right.   Although a husband can piggy-back onto a wife's E106, this is not the case if he is working.  You need to ask the centre for non-residents if your dependents are included on it.  What I do not know is if a Workers' E106 is appropriate for the self-employed (this is the form a person employed in the UK but living in France would normally have) and particularly a self-employed person who isn't actually working!  Like Ernie, I would be inclined to seek professional advice myself, but certainly to speak to Newcastle about his health cover.
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   20/05/2008, 14:08
ErnieY is not online. Last active: 08/07/2008 06:08:50 ErnieY



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Re: 2007 tax return for wife living in France, husband commuting to UK during the week
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According to the HMRC APPLICATION FORM, to qualify for an E106 a self employed person should have paid Class 2 NI.

I'm hoping we don't see something quietly creeping up to seriously bite you in the bum here Cry Out [:'(]

 


My doctor said one drink per day, I can live with that !
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