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I just accepted a job in the UK that will ask me to be 40%

Customer Question

I just accepted a job in the UK that will ask me to be 40% of my time in France, 30% in the UK and 30% in Belgium.
I'm French citizen, UK resident since January 2012 but not ordinarily UK resident and I still have my domicile in France.
Given the time I will be in the UK, do I have to pay income tax in the UK? if yes, is it 30% of the total amount?
Do I need to declare anything in France?
What happens if I decide to go back to France with an income coming from the UK?
Thank you in advance for your help.
Submitted: 3 years ago.
Category: Tax
Expert:  Nicola-mod replied 3 years ago.
Hello,

I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Nicola
Customer: replied 3 years ago.

How long do you need to find an answer? I'm ready to wait for 2 more days if it can help you to find the right expert.

Expert:  Nicola-mod replied 3 years ago.
Hello,

I'm afraid JustAnswer cannot guarantee a time; however, most questions are asked in a timely manner.

We will continue to look for a Professional to assist you.

Thank you for your patience,
Nicola
Expert:  TaxRobin replied 3 years ago.
Hello and thank you for posting your question.
Your tax responsibility to the UK is clear because you will be physically working in the UK. The tax treaty between the UK and France will afford you relief in France on the taxation of the UK income from double taxation.
If you're non-resident but work partly in the UK, you'll pay UK tax on the part of your earnings allocated to that work. You usually allocate your earnings by looking at the number of days you work in the UK and the number of days you work abroad.
Article 24 of the treaty allows for how you will receive the relief. France will allow for a credit against the taxes that you pay in the UK on the earnings.
As a resident of France your worldwide income is reportable. This is then covered by the tax treaty for relief.
I hope this information is helpful and thank you for your patience.

Customer: replied 3 years ago.

Just for clarification. I'm domiciled in France but not resident of France. I have my residence in the UK but i'm not ordinarily resident of the UK as I don't have any intention to stay in the UK. It also means that I don't have to declare anything in France.


If I stay 40% of my time in the UK, it means that I can ask for a refund of 60% of my income tax. is it correct? if yes what is the process to do it?


I have an offshore bank account and my salary will be paid to this account. However I will need to transfer some money to pay my rent from my offshore bank account to my local bank account. how does it concretely work?


 

Expert:  TaxRobin replied 3 years ago.
Hello,
Income you earn in the UK will be taxable to the UK. If you have a home in the UK you will really need to look again at your tax resident status for the UK.
Consider whether you spent 183 days in the UK in that tax year. If
you did, you will be resident in the UK.
You may wish to go over the rules for your residency status
http://www.hmrc.gov.uk/international/rdr3.pdf
The double taxation relief I advised about are relevant when France and the UK would tax you on the same income.
Customer: replied 3 years ago.

Indeed for the last Tax year I spent 7 months in the UK. I asked PWC to do my tax return and claim for the 5 months I spent abroad. They told me that I won't be able to claim it as my salary was not paid to an offshore bank account. is it correct?

Expert:  TaxRobin replied 3 years ago.
Yes they were correct. You will still need to look over carefully that url I sent you (http://www.hmrc.gov.uk/international/rdr3.pdf).
You need to properly be able to define your tax residency. Your time in the UK and the fact that you have a home there are very important. PWC is more than competent and they can (if you use them again) walk you through the changes that HMRC has made.
Customer: replied 3 years ago.

I understand what you advised me to do but it didn't answer my question.


I know that I'm UK resident and my question was more about the best option for me.


Is it better to ask for the OWR (Overseas Working Days Relief) or ask HMRC to pay the remittance charge basis of £30K?


FYI, I have the intention to keep the money outside the UK


 

Expert:  TaxRobin replied 3 years ago.
The OWR would be better. These earnings are not taxable in the UK unless
they are remitted to the UK.
Customer: replied 3 years ago.

Let's consider that my income tax is £100k (that will be the case) and I spend 50% of my time abroad:

If I go for the OWR model I can claim up to 50k. If I go for the RCB I can claim up to 70k.

is that correct?

if it is correct, it means that it is better for me to ask to pay the remittance basis instead of claiming the OWR.

 

Expert:  Nicola-mod replied 3 years ago.
Hello,

It seems the professional has left this conversation. This happens occasionally, and it's usually because the professional thinks that someone else might be a better match for your question. I've been working hard to find a new professional to assist you with your question, but sometimes finding the right professional can take a little longer than expected.

I wonder whether you're OK with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Nicola
Customer: replied 3 years ago.

I think we should cancel the question. It seems that it's a complex situation.


Thank you anyway for having tried.


 

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