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French Tax

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Old 24th Jan 2001, 17:49
  #1 (permalink)  
Gaston
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Question French Tax

Are there any longhaul drivers out there who are resident in France, but work for a UK-based airline? ( or indeed any other non-French based airline)

If so, how do you legally avoid the punitive levels of French income tax? I’ve heard ( rumours! ) of Woolly Pullies and Nigels living there, but wonder how they avoid paying up to 76% tax ( PAYE + NI )

All abuse or facts greatfully accepted.
 
Old 24th Jan 2001, 18:50
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Boss Raptor
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Wink

Worked in France 'bout 6 six years back...stay tax resident in the UK - keep a UK address.

As there is a dual tax agreement between UK & France you should not be taxed twice...if you are self employed or working under the umbrella of your own limited company you should also be able to offset all your travel and accommodation costs in France against your UK taxable income...

Don't believe things have changed...
 
Old 24th Jan 2001, 19:37
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foghorn
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Red face

There is usually a magic '183 day rule' in tax treaties.

Tax is normally deducted in the country in which your employment is based. However, if you lived in another country for more than 183 days in a tax year, the Inland Revenue of that country can claim income tax and social security payments (a.k.a. National Insurance) from your earnings.

Double taxation treaties mean that you do not have to pay tax on income twice (i.e. to two different countries), if you earn in one country and are resident in another, however you do have to pay tax at the higher rate of the two countries. With the EU countries this almost invariably means that you will pay more tax than the UK!

(For comparison purposes, UK top tax rate is 40%, if I understand you correctly France is 76%. Ouch)

However as Boss Raptor says there are many ways of slipping through the net so you can choose to pay tax to the country with the lower rates. This is the so-called 'tax competition' that the EU wants to outlaw - by forcing the UK's taxes up!
 
Old 25th Jan 2001, 04:10
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WTHIDN
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As I understand it, if you can prove your "centre of life" has moved outside the UK and spend no more than 90 days per year (over midnight) averaged over 3 years in the UK you pay only a small amount of income tax. Basically, the work you do within the UK, ie. standby's, groundschool, flight time within the UK, is taxable. it's your choice whether or not you pay NI but all of our fellas do (VS).

There is no tax payable in France unless you spend more than 90 days there either.

The revenue used to grant instant exemption but, due to abuse of the system, now want proof for at least 12 months of moving abroad.

------------------
What The Hell's It Doing Now?
 
Old 27th Jan 2001, 20:46
  #5 (permalink)  
amused
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Wthidn,

I think the figure is 181 days in France! 90 is for UK
 

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