Working remotely

I don't know the answer but I am considering asking my workplace if they would let me work remotely online. I work in accounts and during covid outbreak this has proved for several months I am able to work from home.   I hope this will give us the opportunity to be able to fulfill our dream! We have a mortgage application in to arrange for finance and estate agents visiting house to check rental value soon as we hope to rent our house out while we buy a new house based in France.

If they say yes, we have a chance at moving before transition period if we can and we are just starting to find out more information about this. Hope it's not too late.

I will let you know what they say but am interested in seeing the responses.

Hi and welcome to the Forum.

France is not my area of detailed knowledge, but in general, EU citizens have the right to live and work anywhere else in the EU.  Where you will come unstuck is that assuming you're currently resident in the UK, you will have UK work contracts and will be paying tax and National Insurance into the UK scheme; further, you will not have any medical insurance as your E111 is only valid for emergency cover while on short-term visits (holidays).

Assuming that the French have a resident registration system similar to other EU countries, then you may have issues with the French taxman as from the date you become resident in a country, you are liable for their tax rules.

Hope this helps.

Cynic
Expat Team

Yes we think we will have to pay tax in both countries, Isle of Man & France! We understand this is the case certainly for us.  We aim to become resident in France, but if I return to work in Isle of Man for 3 months a year, I may also still quality for Isle of Man residency which means we have some personal allowance to claim against before paying tax and then we have to pay tax at appropriate rate of course. We obviously have to find more about this, but would be good for my work to know I am still coming back 3 months a year.

Hi again.

Interesting one; I've just checked and apart from aviation and shipping, the Isle of Man does not have a double taxation agreement with France.  Normally, if you are resident for more than 90 days in any country, you are deemed as being resident for tax purposes at least and they then assess you for the full tax year, which will be a nightmare for you as the IoM tax year runs from Apr > Mar, while the French one runs from Jan > Dec.  Yours will be an expensive future.

Would be useful to know how you get on so we can better advise the next person asking your same question.

Best of luck anyhow.

Cynic
Expat Team

Thank you, yes this is our understanding at the moment, we will need to pay both country tax (even if I don't spend over 3 months in Isle of Man we pay IOM tax on all at 20%)!  We will keep posting about our experience. The only plus for us, we don't spend much money other than utilities and food, although we have to consider ensuring we have health care. We grow our own vegetables here for 5 years, this doesn't save much but it does help!

If I become resident in France out of my own choice but work for a company outside of France , does the company I work for have to register for French payroll taxes? My move is my choice, the company I work for has no office or reason for me to work in france otherwise.

I have payroll taxes deducted from my salary in the country the employer is based (isle of man) . If I choose to move to France for my own reasons would my employer have to pay to France directly or can I pay the taxes directly myself via French income tax returns etc. I realise that I may have to pay tax in both France and the Isle of Man as there is no double tax treaty. My employer is more likely to allow me to do this if it is not more for them administratively but I imagine that they will say no if it means they have to do separate payroll etc. They have no reason to as it is me wanting to move, they don't have an office or any reason to have employee in france? However I am able to work from home so I am hoping to if I can.

If the company I work for wanted to set up an office in France of course they would have to register, but in this case my employer not yet aware of my plans to move.

I will try and call French tax authority to ask them later this week. I tried to contact them online but it seems they want to ask for registration / french tax number to do this and of course I don't have yet.

I spoke with the French tax authority, they said it is not mandatory for the company I work for to register because they are not opening an office in France etc. I obviously have to declare my income etc and pay French tax of course I understand this, but means not extra administrative work for the company I work for. 

Would of course possibly have been different rules if the employer was sending me to France to work.

Hi again,

Thanks for the update; useful information.

Cynic
Expat Team

Update!  Are you an English speaking tax or legal agent with French Residency / Tax experience who could help me clarify my position.  If you can provide a quote to help provide information on answers to my questions please let me know as I am happy to pay for the advice if not thousands of pounds! ?

My employer has approved in principle to my request to working from home in France however I need to help them satisfy a concern they have that it could maybe have potential corporation tax implications. Can you help provide contact who can give formal and practical advice?

I prepare regular management accounts data for my employer on part time basis but I am not a key decision maker or contract arranger/sales person etc.  My employer has no control over basically the work area in my house where I work from and there is actually no need for me to do those activities in France other than the fact I want to move and live in France and become resident there there but stay working for current employer.

I called the tax office about this in France but they would not give me an email or written confirmation as I don't have a tax ref number yet. 

I want to help confirm my position with French tax authorities before I move to France. 

(an update on my IOM position, although there is no double tax treaty between IOM and France I understand that it may be a possibility to liaise with Isle of Man tax authority to see if I can get a concession from paying IOM tax on employment income if I permanently leave the Island).

I would appreciate if you could provide me your email contact if you think that you can help me with this?

Thank you

Hello,

I too would be interested in any response as I am moving to France in mid October but will still be working (remotely) for my U.K. employer until the end of March 2021 when I am leaving work as I have taken redundancy. I will live in France after October with my partner and fortunately we don’t have to work after March.

I believe, although am happy to be corrected as I won’t be working in France for more than the 183 days in the tax year that I can continue to pay tax in the U.K. but as soon as we become residents I believe this may indeed change. My partner is in receipt of pensions etc in the U.K. which will I believe continue to be taxed in the U.K. and we’ll need to put in a tax return which isn’t an issue.

If anybody has any experience in this area I would be very grateful to receive it.

Thanks