Returning to work in the UK

by **db242** on Sun Dec 11, 2011 11:48 am

Hi,

Im new here but have done some research on this, in fact I've got hundreds of pages of stuff on my dining room table!
Also Ive ben looking for a tax advisor but need to find someone with an in depth knowledge of the Dual Tax Treaties of UK / France and also UK / Italy.

I was resident and working in the UK for a UK airline for ~5 years prior to moving to Italy to work full time at the start of Aug 2010, under an Italian contract, working for the same airline but an Italian incorporated entity.
I moved my belongings out there and stopped renting accommodation in London, I rented a flat in Rome. Due to some personal circumstances I decided to move to Paris (my father was ill and I thought it may be easier to visit him from there), I stayed working for the same airline but
moved to a French contract (there was no break), the company is the UK airline for the purposes of the French contract. I started in France in early Feb 2011. I rented a house in France and its my only home, my possessions are here and I work full time here. My intention is to pay French tax for the French tax year 2011, I have already paid Italian tax for all the time spent there, withheld at source in Italy but not France. I have always been under Section 690 and am under the impression that my link with HMRC is still active via that channel.

It seems that as long as this situation remains and I am working full time in France then I only owe UK tax on my UK duties (very limited) and owe France income tax on my income.

My problem now is that I am considering a return to the UK to work for another airline, I have requested a start date after the 6th of April 2012, but they have indicated that a mid march or a very early April (before the 5th) will be available with a late May date a possibility but theres no guarantee that that will ever come to pass (due economy etc).

If I cannot claim non residency status for my period abroad then I hope to be sheltered by the relevant DTT. I am happy to arrange my home to be in France for a while but probably months not years. Due to the nature of the job, lots of duty time will occur outside of the UK.

This is a complex situation I appreciate.

Would there be an advantage in starting early April rather than March (though three are disadvantages to this in terms of seniority)?
Must I start after the 5th of April?
How long should I keep my only home in France?
Are HMRC likely to want to tax me for the Italy / France work?
Will the Treaties cover / shelter me?

I certainly am resident in France under French tax law (183 days, home, work) I was probably resident in Italy under Italian tax law (permanent home, work)

It seems my best hope is the treaties, what I am looking for is to be taxed in Italy on the Italian income and France on the French income. I have spent lots of time looking at articles 4 and 15!

I appreciate your time reading this and re-iterate my desire to find a professional who can help me achieve a decent outcome.

Thanks

David