Re: Another working in the UK/ living in France thread

Earning a Living

Another working in the UK/ living in France thread


rory 15/05/2008, 18:28
Hello all,
I'm a first time poster having only just come across this forum. I've poured over a lot of the previous threads covering working in the UK while living in France and I'm still a little confused(!). I appreciate that getting advice from the experts is always the better option, but I've had just as much fun trying to find said experts, so in the meantime, I was hoping to get anyone's insights or experiences to back up (or destroy) my view on this.

We are moving down to France in July, primarily so my better half can return to be near her family and friends having put up with being in the UK for the last 10 years. However, I will still commute back to the UK during the week, generally travelling on a Monday and coming back on Friday. My wife will also return to work in France as well. Unfortunately, due to the somewhat bleak UK housing market and being unable to get a buyer, we are now renting out our UK house and will be renting in France for the foreseeable future (or until the property market here turns the corner again).

So, as far as I can tell, my salary will be taxed at source in the UK, including N.I payments, which I will have to declare in France, but will not be re-taxed upon. As the rent on our house in the UK will not cover our mortgage here, we will not be liable to any UK tax on that, although I'm a little unsure of the implications of this in the French authorites' eyes. I will also need to get hold of an E106 (or E109?) to cover health in France. My wife will be liable to tax in France and will pay the usual social security payments through her french employer.

One question I had was when taking looking at what the UK counts as days in the UK for residence, is travel to and from included?

I've always gone on the assumption that our case was not particularly out of the ordinary for 'euro-commuters' but I'm happy to be corrected. I'd be really grateful if anyone's got any similar experience they could share or to point me in the right direction.

Thanks all in advance.

Re: Another working in the UK/ living in France thread


Sprogster 15/05/2008, 18:38
Under the new rules that came into affect on the 6th April, 2008, you are ordinarily resident in the UK for tax purposes if you are present in the UK at midnight for ninety days or more.

Re: Another working in the UK/ living in France thread


J.R's gone native 15/05/2008, 19:30

Yet another one to add to the already confusing array of measures for residency/domicile.

Lets hope that this one is definitive and all the others are redundant.

Anyone that has tried to get a black and white decision out of the the centre for non residents will understand why I wont be holding my breathSmile [:)]

Re: Another working in the UK/ living in France thread


Sprogster 15/05/2008, 20:06

Domicile is a different kettle of fish, as it is extremely difficult for an individual with a UK domicile of origin to shed it and acquire a foreign domicile of choice.

For example, you can live abroad for years but if you maintain links with the UK, such as family, business or investment interests, club memberships and regular visits, then it is likely that HMRC will take the view that you are still UK domiciled, notwithstanding they accept you are non resident.

Why this is all relevant is that liability to UK IHT is based on domicile and not residence.

Re: Another working in the UK/ living in France thread


Ginger 17/05/2008, 16:48
Hi Rory, I can't help out with the number of days for UK residence as I'm trying to find that out myself, but I can tell you that if your wife works in France you will not be entitled to an E109 and your wife will have to pay cotisations to the French healthcare system. If you are paying tax and NI in the UK you are not entitled to healthcare in France except what is covered under your EHIC.

Bonne chance

Re: Another working in the UK/ living in France thread


Will 17/05/2008, 19:17

It's actually quite easy to get the official HMRC guidelines on residence and domicile. You can download the current version from http://www.hmrc.gov.uk/pdfs/ir20.pdf.

As far as travelling days are concerned, they were never counted up to a short time ago, but following one particular piece of case law, HMRC can now include them in the 90 days in cases of dispute. You also need to bear in mind if planning to spend more than half the year in France that although you may be UK tax resident under the 90-day rule, that may not necessarily apply to social security residence, so you could be expected to pay French health and social security charges.


Will

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http://www.vienormande.com

Re: Another working in the UK/ living in France thread


ErnieY 17/05/2008, 20:27

 Ginger wrote:
If you are paying tax and NI in the UK you are not entitled to healthcare in France except what is covered under your EHIC
I admit I don't really know what effect a working wife has on the equation however this statement as it stands is definately NOT true.

If the wife is resident in France but the husband not then you may be correct but if both are French resident and the wife is not working then, subject to the usual NI contributions based qualifying criteria, the working husband will qualify for a workers E106 issued by HMRC covering them both.

Trust me, I know, this is precisely my situation Wink [;-)]

 


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

Re: Another working in the UK/ living in France thread


Chrisb 17/05/2008, 22:23
Us, too, Ernie - exactly as you describe.

Chris

Re: Another working in the UK/ living in France thread


Will 18/05/2008, 7:43

Ernie and Chrisb - the original post then went on to say "My wife will be liable to tax in France and will pay the usual social security payments through her french employer." So I take that to mean that she will be working and living in France. In that case, Ginger is perfectly correct and the OP will not be eligible for E106 or E109, his healthcare in France will be via the EHIC. The EHIC is actually rather wider in scope than the old E111 and should cover all normal needs.

Just like you, I know - that is exactly our situation.


 


Will

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http://www.vienormande.com
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