Contracting in EU via a UK agency

[zaffarn]

Hi

I am getting a contract through a UK company and will have to work in France perhaps over 6 months in a year, but I will be paid in UK through their UK company, my question is does 180 working day rule apply to me, i.e. do I need to pay local taxes as well in France ?


Regards

[Boo]

I am getting a contract through a UK company and will have to work in France perhaps over 6 months in a year, but I will be paid in UK through their UK company, my question is does 180 working day rule apply to me, i.e. do I need to pay local taxes as well in France ?

Yes the 183 day rule </pedantic> does apply to YourCo as it does to any EU firm sending an employee to work in another EU country.

Boo

[stek]

Hi

I am getting a contract through a UK company and will have to work in France perhaps over 6 months in a year, but I will be paid in UK through their UK company, my question is does 180 working day rule apply to me, i.e. do I need to pay local taxes as well in France ?


Regards

It doesn't apply, you pay French taxes from day one.

[Boo]

It doesn't apply, you pay French taxes from day one.

Ignore him.

The EU law is competely clear and applies as much to France as to anywhere else. There is a good description of the 183 day rule which directly pertains to Belgium but if you want to know specifically about the situation in France I suggest you give them a ring.

No relation,

Boo

[SueEllen]

It doesn't apply, you pay French taxes from day one.

He's correct.

I looked into contracting in France a while ago and also spoke to others who were contracting there.

You can find this information out for yourself by Googling. Though I probably looked at some French tax websites as well.

I forgot to add if you want to work abroad in the EU your company needs one or two other directors who live in the UK to establish that your company is UK resident. Otherwise where your company is based moves where you move to. Even then your dividends may end up being taxed in that country depending on how long you stay, and your expenses may be considered a part of your salary however long you stay.

[Fred Bloggs]

Agree with SE. I concluded it simply isn't worth it. I'd take a lower UK rate rather than a higher French one.

[ASB]

Ignore him.

The EU law is competely clear and applies as much to France as to anywhere else. There is a good description of the 183 day rule which directly pertains to Belgium but if you want to know specifically about the situation in France I suggest you give them a ring.

No relation,

Boo

kind of. but only really applies that way in border areas with daily transit. it is described on the eu website.

I did a couple of years in france billing from uk. no problems. that was largely on the did not get caught basis.

you will likely get away with it if you have no form of establishment. hotel monday to friday and working for a bona fide non french trading company will just abou be acceptable. rent a flat or similar is instant tax resident.

uk single person company is at high risk.

[SueEllen]

uk single person company is at high risk.

This is the big point people ignore quoting the 183 rule - lots of EU countries don't accept single person limited companies.

So while some EU countries do specifically have in their tax laws that employees in particular shortage professions can work there for less than 183 days and not pay tax, companies with only one director were that director is the employee being sent are excluded.

If you use Google you can find a few examples where people fell into this trap and found their last few months invoices weren't paid to them but given the to the taxman of that country.

[ASB]

This is the big point people ignore quoting the 183 rule - lots of EU countries don't accept single person limited companies.

So while some EU countries do specifically have in their tax laws that employees in particular shortage professions can work there for less than 183 days and not pay tax, companies with only one director were that director is the employee being sent are excluded.

If you use Google you can find a few examples where people fell into this trap and found their last few months invoices weren't paid to them but given the to the taxman of that country.

The French tax code makes you resident if you carry on professional activity. It is hard for a one man band to argue they don't. However if there mon-fri; and have significant corporate activity back in the uk you do have a chance.

Oddly under the French constitution most bilateral treaties override domestic law. but that doesnt help much in tax matters.

If the OP wants to take the risk, that is fine. But it would be prudent to get proper advice to ascertain the level of risk.

If the op were an employee of the uk company they would be ok in many circumstances. If this is ops major income stream then likely problematic if caught.

[BlasterBates]

Agree with ASB, a very risky thing to do, if you are not going to inform the French authorities. The problem is the consequences are dire if the authorities decide otherwise. If you are going to do this, then make sure it is with the knowledge and consent of the French tax authorities.

In any case I don't really see any advantage in taxing in the UK. If you tax income in France as a non-resident you probably won't be paying social insurance and the tax rate will probably be no more than in the UK for a 6 month project as you will not be hitting the higher tax thresholds.

To summarise if in doubt declare, let the taxman decide.