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Frontier working

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    Frontier working

    There’s a lot of talk about being tax resident in places, but that you must pay tax, social charges, where they are earned.

    However, on researching on the board, a lot of people believe if you worked 4 days in the UK, and (because how differently France and the UK measure a ‘tax day’) lived 3 days (but 4 ‘tax days’) in France, you’d be tax resident in both countries (184days/184 days), and so liable for social charges and tax in both countries?

    I have read the EU agreement on tax and border workers (known as frontier workers) and it simply says frontier workers are liable for social charges and tax in the country they earned their money and not in their main country of residence, so someone living in Belgium, but crossing the border to work in France, would be liable for French ‘cotisations’, not Belgian. However, you have to declare French earnings and tax in Belgium, as any money earned in Belgium would be taxed on top of French earnings, so you’d lose Belgian tax allowances.

    So, from what I understand, if I contract in the UK, 4 days a week, but my family live in France, I am liable to the UK tax regime, but if my wife worked in France, she’d be taxed (and social cotisations) from the starting point of all my earnings.

    Sorry if that’s long winded, or confusing, but it’s a confusing situation.

    I believe that’s how lots of eastern workers are able to claim tax credits for their wife and kids back home; they live here and pay taxes here, so are eligible for tax credits which they then send home.

    Has anyone done this?

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