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French tax on Uk income including dividends

UK company with wife, paid the base wage & dividends, will I get further taxed in france

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My wife and I have a UK company and get paid the base wage and dividends.

As an example, if we were paid the following each
Salary £8840
Dividends £20000
The tax would be about £1070.25

If we were living in France for longer than 183 days in the year we would be classed as residents in France and be under their tax. 

Would we pay more Tax than what is already paid in the UK?

If so any rough idea what that would be?

Replies (8)

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By Tax Dragon
26th Sep 2021 10:25

It'd be lovely to think that tax calculations could always be done on the back of your hand, but I do think that, just possibly, you might be over simplifying the issues here a tad too much - even for a forum such as this, which thrives on the simple.

The largest tax payment by far on those figures is of corporation tax. You don't mention it. Doesn't it matter to you?

If you are living and working in France, even if for only 182 days in a year (which, btw, I suspect is enough to make you tax resident there, but others in here are more qualified to say)... but even if you are not tax resident in France under French law, does your company have a base there, because you have a base there from which you work for the company?

I think if you are going to split your time between jurisdictions, it is almost behoven on you to accept that part of the cost of that is that you need an accountant in each jurisdiction. This forum in not an accountant. Not in either jurisdiction.

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Replying to Tax Dragon:
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By kingofwishfullthinking
26th Sep 2021 10:36

Hi and thank you for your reply

Corporation Tax is not a concern, happy with what we are paying in the UK. no we do not have a base in France, we are solely online and our company resides in the UK

The biggest question I'm trying to cover is will my dividends be further taxed in France, trying to find an answer to that doesn't seem to be a simple task

I appreciate that this is only a forum and not an accountant, but Im hoping someone on here has experience or can point me in a direction where I can get an answer, be it an accountantin france or even in the UK

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Replying to kingofwishfullthinking:
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By David Ex
26th Sep 2021 11:11

kingofwishfullthinking wrote:

Corporation Tax is not a concern, happy with what we are paying in the UK. no we do not have a base in France, we are solely online and our company resides in the UK

Unless you are familiar with the rules for determining company tax residence in the UK and in France, and the impact of the UK/France Double Tax Treaty, I’m not sure that’s necessarily correct. Not saying it isn’t, but cross border tax tends to be complicated.

I’m assuming there are forums where ex-pats post and would have thought that would be one place to start your search for the UK and French tax advice that you need.

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Replying to kingofwishfullthinking:
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By David Ex
26th Sep 2021 11:19

I’d look at ex-pat forums. Someone will be able to suggest tax advisers on both sides of the channel who deal with similar circumstances to yours.

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Replying to kingofwishfullthinking:
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By Tax Dragon
26th Sep 2021 11:56

There's a regular contributor in here, https://www.accountingweb.co.uk/profile/accountantccole, who I believe is based in France but has UK experience. Might be worth approaching her for a quote.

Meanwhile, I agree with David. To some extent you company goes where you go, so if you are in France, your company is (to some extent) in France. It might be governed by UK law, that doesn't stop it being taxed in France.

All I'm really saying is: don't assume; take advice.

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Replying to Tax Dragon:
Caroline
By accountantccole
27th Sep 2021 07:48

Thank you

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Caroline
By accountantccole
27th Sep 2021 07:46

Hi King
If you are French resident then you will declare your worldwide income in France but depending on how much time you continue to spend in the UK, you may also have UK tax to pay.
A bigger issue is the company, if run remotely from France would be generating profits so you ought to be declaring that in France too. We normally set up a French co to deal with the french operations and have a cross charge to the Ltd for the work done in France. It isn't a cheap option as you have two sets of accountants' fees for a start.
Tax in France isn't really the biggest issue - it is the social charges that are eye wateringly high. Trading profits often carry various welfare/social charges of up to 45%.
Dividends in France can be taxed in one of two ways, either on the sliding scales or there is a capped calculation - we advise most clients to expect 30% (tax +social charges) limit on their dividends.
Simulations are hideously complex and therefore expensive, everyone's situation is different!

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Replying to accountantccole:
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By kingofwishfullthinking
27th Sep 2021 07:54

Ok then that just about answers it all

Appreciate your answer, I have also sent you an email

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