Advice on which solution to go with whilst abroad - Sanzar/Garraway Consultants

[BlasterBates]

If the company has 3 directors, two of whom are permanently resident in the UK, board meetings and other management decisions take place in the UK how can the company be French resident?

It doesn't matter where the directors are, it's where the employees are the count. If you have one employee working somewhere for several months the tax authorities will argue that your company should be registered in France as well as the UK, and tax should be paid in France as laid out in the Double Taxation treaty for companies that operate in two countries. The rules for "dual residency" are outlined in the DTA.

[skywalker76]

Thanks for all the advice. I'll def be looking at another solution now.

Could somebody advise me on the following proposal:

The Solution

1) ************ has setup in France, a company in partnership with a Bulgarian entity. This allows us to technically employ consultants from the Bulgarian entity who are then posted to the new French entity. This allows us to arrange for social costs (via A1 certificate of coverage) to be paid in Bulgaria rather than in the far more expensive France.

2) Tax is not withheld in France for employees as it is the individuals responsibility to declare income and pay tax in the year following that in which it was earned. Thus the French tax estimate shown in the attached simulation is paid over to you each month, but indicates what will be due to be paid upon completion of the annual tax return.

3) Impatriation allowance - under article 155B of the 'Code General des Impots' an expatirate contractor in France, an 'impatriate' may have part of his taxable income exempt from taxation. Under this regime a contractor may opt for a 30% exemption of his taxable income. This allowance is considered as an additional remuneration received for the work performed abroad to cover additional expenses for the accommodation or the additional tax pressure resulting from living in France. To qualify for this allowance you must not have lived in or worked in France during the past 5 years.


Solution Summary

You will be employed by our new French company which is a joint venture with a Bulgarian partner. Via an A1 certificate of coverage we can arrange for you to pay social costs in the jurisdiction of your employer, in Bulgaria, at far lower rates than you would face in France
If eligible, 30% of taxable salary will be exempt from tax (expat tax regime)
Estimated French tax liability is shown in the attached simulation - but is not witheld, this liability is due once an end of year tax return is produced and tax demand made by the French authorities
We will attend to social insurance deductions
Estimated retentions will be in the region of 73% (without 30% allowance) over a 12 month period, retentions will be higher for contract periods below 12 months in the current tax year. If the 30% allowance is available to you, estimated 12 month retentions will be in the region of 75%.
The fees for our services under this solution which include general advice, timesheet control, invoicing, collecting your funds and paying you are 7% of contract value per month with a minimum fee of €550.00. There are no hidden charges or start up fees.

Professional Indemnity Insurance (PII) – our contracts require our contractors to have PII. If you do not already hold this insurance, AFSS can offer you a fully comprehensive PII at €50 for up to 3 months, €100.00 for 3-6 months or €150 for 7-12 months with a worldwide cover (exc USA) of €5 million.

[LisaContractorUmbrella]

Thanks for all the advice. I'll def be looking at another solution now.

Could somebody advise me on the following proposal:

The Solution

1) ************ has setup in France, a company in partnership with a Bulgarian entity. This allows us to technically employ consultants from the Bulgarian entity who are then posted to the new French entity. This allows us to arrange for social costs (via A1 certificate of coverage) to be paid in Bulgaria rather than in the far more expensive France.

2) Tax is not withheld in France for employees as it is the individuals responsibility to declare income and pay tax in the year following that in which it was earned. Thus the French tax estimate shown in the attached simulation is paid over to you each month, but indicates what will be due to be paid upon completion of the annual tax return.

3) Impatriation allowance - under article 155B of the 'Code General des Impots' an expatirate contractor in France, an 'impatriate' may have part of his taxable income exempt from taxation. Under this regime a contractor may opt for a 30% exemption of his taxable income. This allowance is considered as an additional remuneration received for the work performed abroad to cover additional expenses for the accommodation or the additional tax pressure resulting from living in France. To qualify for this allowance you must not have lived in or worked in France during the past 5 years.


Solution Summary

You will be employed by our new French company which is a joint venture with a Bulgarian partner. Via an A1 certificate of coverage we can arrange for you to pay social costs in the jurisdiction of your employer, in Bulgaria, at far lower rates than you would face in France
If eligible, 30% of taxable salary will be exempt from tax (expat tax regime)
Estimated French tax liability is shown in the attached simulation - but is not witheld, this liability is due once an end of year tax return is produced and tax demand made by the French authorities
We will attend to social insurance deductions
Estimated retentions will be in the region of 73% (without 30% allowance) over a 12 month period, retentions will be higher for contract periods below 12 months in the current tax year. If the 30% allowance is available to you, estimated 12 month retentions will be in the region of 75%.
The fees for our services under this solution which include general advice, timesheet control, invoicing, collecting your funds and paying you are 7% of contract value per month with a minimum fee of €550.00. There are no hidden charges or start up fees.

Professional Indemnity Insurance (PII) – our contracts require our contractors to have PII. If you do not already hold this insurance, AFSS can offer you a fully comprehensive PII at €50 for up to 3 months, €100.00 for 3-6 months or €150 for 7-12 months with a worldwide cover (exc USA) of €5 million.

So you are employed in Bulgaria and France?? Interesting I am not an expert in Bulgarian or French employment and tax law but I think the old chestnut "If it seems to good to be true it very probably is" applies here

[mooshld]

Thanks for all the advice. I'll def be looking at another solution now.

Could somebody advise me on the following proposal:

The Solution

1) ************ has setup in France, a company in partnership with a Bulgarian entity. This allows us to technically employ consultants from the Bulgarian entity who are then posted to the new French entity. This allows us to arrange for social costs (via A1 certificate of coverage) to be paid in Bulgaria rather than in the far more expensive France.

2) Tax is not withheld in France for employees as it is the individuals responsibility to declare income and pay tax in the year following that in which it was earned. Thus the French tax estimate shown in the attached simulation is paid over to you each month, but indicates what will be due to be paid upon completion of the annual tax return.

3) Impatriation allowance - under article 155B of the 'Code General des Impots' an expatirate contractor in France, an 'impatriate' may have part of his taxable income exempt from taxation. Under this regime a contractor may opt for a 30% exemption of his taxable income. This allowance is considered as an additional remuneration received for the work performed abroad to cover additional expenses for the accommodation or the additional tax pressure resulting from living in France. To qualify for this allowance you must not have lived in or worked in France during the past 5 years.


Solution Summary

You will be employed by our new French company which is a joint venture with a Bulgarian partner. Via an A1 certificate of coverage we can arrange for you to pay social costs in the jurisdiction of your employer, in Bulgaria, at far lower rates than you would face in France
If eligible, 30% of taxable salary will be exempt from tax (expat tax regime)
Estimated French tax liability is shown in the attached simulation - but is not witheld, this liability is due once an end of year tax return is produced and tax demand made by the French authorities
We will attend to social insurance deductions
Estimated retentions will be in the region of 73% (without 30% allowance) over a 12 month period, retentions will be higher for contract periods below 12 months in the current tax year. If the 30% allowance is available to you, estimated 12 month retentions will be in the region of 75%.
The fees for our services under this solution which include general advice, timesheet control, invoicing, collecting your funds and paying you are 7% of contract value per month with a minimum fee of €550.00. There are no hidden charges or start up fees.

Professional Indemnity Insurance (PII) – our contracts require our contractors to have PII. If you do not already hold this insurance, AFSS can offer you a fully comprehensive PII at €50 for up to 3 months, €100.00 for 3-6 months or €150 for 7-12 months with a worldwide cover (exc USA) of €5 million.

My understanding is this is the same as what SJD are offering you with one exception. You are not currently a Bulgarian resident. So why make social contributions to a country where you will never have a chance of getting the benefit. I was under the impression to use a solution like this you would be required to maintain a residence in the country where you were paying social contributions. Whether this is checked I have no idea. Ask yourself is it really worth it for a few extra %.

[BlasterBates]

This may well be OK. You can do this I think. I did this though I paid UK NI, when I was in Luxembourg. For a period of time as a foreigner you can pay your social insurance else where. I suspect as in most countries, except the UK, social insurance is probably not a tax anyway, it´s for your benefit, though of course if they can they´ll twist your arm very hard for you to pay it. French social insurance is very high indeed, so it sounds like a good idea. As the others say though wouldn´t you be better off paying UK NI?. If you´re not Bulgarian I would have thought this would raise eyebrows in the French pension dept if they were to do some check in a few years time.

[skywalker76]

Thanks to everyone for the responses. I've decided to go with a legitimate UK solution but after exchanging several emails, SJD have decided to send me cryptic and down right rude replies. It seems that if you ask too many questions you're deemed an angry client and they'd prefer not to do business with you. Their motto as far as I am concerned is 'just sign on the dotted line and don't ask too many questions.'
I really did expect more from a 'professional company.

Therefore, could someone please recommend an alternative?

[skywalker76]

Actually dismiss my previous response as it seems that they have seen the light and sent me a proper more dignified response. I'll keep you all posted.

[simondolan]

I am sorry to hear that. That is a world away from how I would expect my staff to act towards you. Can you please let me know who you dealt with?

[Michael J Perry FCA]

HMRC looking at Sanzar, Cherrylon and others

Spammed advertising.

Banned for 1 day.