French resident UK Ltd company

[BlasterBates]

Hey there. Thanks for your reply. Fair point about language re. tax residency.

What I meant was I'd be living and "working" in France permanently. Though I wouldn't be working in the classical sense of the phrase as there would be no salary paid by the company - only dividends. I guess this is the grey area as naturally I would be fulfilling my companies contracts with its UK clients.

However, from my understanding as long as the company has no employees in France, no AGM in France (i'd be in England for this annually), no stock, premises etc, and no contracts with French companies, it's not required that the company's domicile be in France.

You would have an employee in France, you. Currently if you wanted to use your Ltd to work in France you could, but you would be expected to register a branch in France. i.e. it would be registered in both the UK and France with separate sets of accounts for the work done in the UK and France. As with individuals, companies are taxed anywhere they have income. This is all covered in the double taxation treaty. Don't make the mistake of thinking a company is "tax resident" as well, the company maybe resident in the UK but it will still be expected to register in every country where someone is working.

I would advise that you simply register in France as self-employed and bill your client directly.

[enda1]

The key thing here is whether you will be working in the UK or remote. If you are working in the UK then all income will be taxed in the UK, even if you are non-resident.

Tax on your UK income if you live abroad - GOV.UK

Often people use the term tax-resident. There is no such thing as "tax-residency" and does not exist in any HMRC literature, it gives the impression that you pay no tax if you aren't "tax resident". You are either resident or non-resident and in both cases your are liable for tax on UK income. If you are resident in France then you declare your UK income there as well.

If you are working remotely in France you must register yourself as self-employed or work through a French registered company. You can't work through a UK Ltd company.

Hey there. Thanks for your reply. Fair point about language re. tax residency.

What I meant was I'd be living and "working" in France permanently. Though I wouldn't be working in the classical sense of the phrase as there would be no salary paid by the company - only dividends. I guess this is the grey area as naturally I would be fulfilling my companies contracts with its UK clients.

However, from my understanding as long as the company has no employees in France, no AGM in France (i'd be in England for this annually), no stock, premises etc, and no contracts with French companies, it's not required that the company's domicile be in France.

[Paddy]

It does appear that after 31st December 2020, you will be into double taxation. Furthermore, I doubt if you can get away with just dividends. Ask an accountant.

[BlasterBates]

The key thing here is whether you will be working in the UK or remote. If you are working in the UK then all income will be taxed in the UK, even if you are non-resident.

Tax on your UK income if you live abroad - GOV.UK

Often people use the term tax-resident. There is no such thing as "tax-residency" and does not exist in any HMRC literature, it gives the impression that you pay no tax if you aren't "tax resident". You are either resident or non-resident and in both cases your are liable for tax on UK income. If you are resident in France then you declare your UK income there as well.

If you are working remotely in France you must register yourself as self-employed or work through a French registered company. You can't work through a UK Ltd company.

[enda1]

Hi,

Any advice on maintaining my UK company but becoming French resident?

So my thinking was that my client is in the UK and I would continue to bill them via my UK company. However I'd personally be non UK tax resident. In order for the UK company to maintain in the UK and not have to be domiciled in France, control would have to be maintained in the UK and no clients could be perused in France. Likewise, I would receive only dividends also - no salary so would "only" pay flat tax on this income in France at 30%

I want to do everything above board but also maintain a semblance of tax efficiency...

Thanks