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Where Taxpayers and Advisers Meet

Where do I pay tax

ClaBENN
Posts:1
Joined:Sat Oct 09, 2021 10:12 am
Where do I pay tax

Postby ClaBENN » Sat Oct 09, 2021 10:29 am

HI
I have dual British /French nationality and am resident in UK. To date each year I submit a UK tax return on my retirement income . Next year I intend to work remotely from UK for a French organsation. The amount I will earn in France will be declared to the tax french authorities and is unlikely to attract tax as it will be below their threshold for tax. However does this amount of income earned in France need to be delared on my UK tax form and will it be added to my UK earnings and therefore I will pay tax on it in UK?

darthblingbling
Posts:698
Joined:Wed Aug 02, 2017 9:09 pm

Re: Where do I pay tax

Postby darthblingbling » Sat Oct 09, 2021 3:37 pm

If you're tax resident in the UK then you're subject to tax here in your worldwide income. Likely you are also non tax resident in France, if not under their domestic legislation then likely under the double tax treaty, so effectively you should only be taxed in France on your French sourced income.

If the work is being performed in the UK then it's UK sourced income, regardless of where the employer is present. As such the income should not be taxable in France, regardless of thresholds, assuming you have no French workdays.

Your employer may also be liable to pay Class 1 NIC in the UK (primary and secondary contributions) under the the trade and cooperation agreement we have with the EU. This is an obligation for them, but you may want to raise the question with them as it could affect your NI record if they either ignore this obligation. There may also a PAYE withholding requirement for the employer depending on whether they have a taxable presence in the UK.

This is all assuming if course the engagement is one of employment and not self employment.


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