can I still be taxed in the UK when living abroad?

[Blackpuddin]

Does anybody know the score on this one: if someone with a UK limited company opts to live abroad, in France say, could they still continue to pay all their tax in the UK?

[rdjohn]

If you live in France for more than 183 days per year, then France will tax you on your worldwide income. Residency is all important for tax within the EU.

France has to be one of the worst EU counties for tax. We pay some tax on UK income in the UK and then France takes a bigger slice, because that would have been what you would pay if the income was actually French.

In France Social charges are a much bigger issue.

[Blackpuddin]

Thanks for this, so the limited company thing grants no immunity even if all the income is earned in the UK? And from what you say, would it be best simply to bite the bullet and be entirely taxed in France?

[randlemarcus]

If you personally are receiving income from the Ltd Co, that's your income, and taxed accordingly. If it stays in the company, no tax due in France, as the money is not in France.

Depends how you do it, and how much there is. You might want to consider a) why lots of quite wealthy sorts are coming out of France and b) the sheer arseache of running a business in France.

[Blackpuddin]

randlemarcus said:

If you personally are receiving income from the Ltd Co, that's your income, and taxed accordingly. If it stays in the company, no tax due in France, as the money is not in France.

Depends how you do it, and how much there is. You might want to consider a) why lots of quite wealthy sorts are coming out of France and b) the sheer arseache of running a business in France.

If income is taken from the Ltd Co, though, which it would be, would that be taxed by whichever country one is living in?

[anonymous-user]

Blackpuddin said:

If income is taken from the Ltd Co, though, which it would be, would that be taxed by whichever country one is living in?

In these circumstances you really do need to speak to a specialist accountant as they could potentially save you a fortune.

But in general the UK ltd company will pay UK Corp tax, and if you are resident in France you will pay French income tax.

[Blackpuddin]

Understood thanks.

[Blackpuddin]

Looking at the huge step up in rates of tax in France beyond the 26,700 euro income mark (from 14% to 30%) it would appear to be in every French employee's interest not to do well.

[Blackpuddin]

anonymous said:

[redacted]

Well yes they would wouldn't they? I'm no mathematician or economist but surely if they're taxed at 14% up to 26,764 euro and then at 30% from 26,765 euro they would need to earn rather more than 26,765 euro to get back to the net income they were receiving when they were on 26,764 euro and being taxed at 14%? Ready to be corrected of course!

[anonymous-user]

Blackpuddin said:

Well yes they would wouldn't they? I'm no mathematician or economist but surely if they're taxed at 14% up to 26,764 euro and then at 30% from 26,765 euro they would need to earn rather more than 26,765 euro to get back to the net income they were receiving when they were on 26,764 euro and being taxed at 14%? Ready to be corrected of course!

Only the income above 26,765 is taxed at the higher rate.

[Blackpuddin]

I'll get my coat! As I said I'm not good with this stuff :-)

[sumo69]

The laws dictating how to decide if you are UK tax resident were introduced a couple of years back - there are a multitude of tests to review if you do not live outside the UK for more than 183 days in a tax year.

If this is something you are seriously looking into, you should invest a few hundred quid and speak to a specialist so you know exactly what is what.

David

[Countdown]

Is it true that, despite having "punitive" tax rates, the french are more productive and have a higher standard of living than we in the UK?

[pherlopolus]

that is probably due to not "wasting" money on cars or looking after the outside of there property....

[randlemarcus]

or washing.

[The Beaver King]

anonymous said:

[redacted]

.....and yet the amount of people I've spoken to over the years that believe that is how it works is staggering.

It suddenly clicks when you point out that, if that were true, there would be a £10,000 window between £40k and £50k where you would be better off actually earning less money....

[Blackpuddin]

I know, I feel a proper Charlie, I'm totally rubbish at this sort of thing.