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I am a UK [and Australian] citizen. I have only lived in the UK for 9 months since Nov 2004. Apart from the 9 months in 2014, i have lived in the US for the last 7 years working for the same employer.

I'm investigating the possibility of living in France [Spain or Italy are contenders too] but still working for my current employer, via the branch located in London, and getting paid in GBP.

Can anyone advise me on what the tax situation would be. i would either be employed as a PAYE employee or as a contractor. I understand the UK has a double taxation treaty with France so i assume that i would be taxed ONLY in France based on the total income of the household [just my family - wife and 2 kids].

Are there any issues that i should be aware of with getting paid in one currency [GBP] and taxed in a different country based on another [EUR]?

would i have to declare my earnings in my UK tax return going forward or just the French return..?

thanks in advance for any help

Wes

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You may need to pay UK Income Tax on your foreign income, eg:

  • wages if you work abroad
  • foreign investments and savings interest
  • rental income on overseas property
  • income from pensions held overseas
  • Foreign income is anything from outside England, Scotland, Wales and Northern Ireland. The Channel Islands and the Isle of Man are classed as foreign.

Residents normally pay UK tax on all their income, whether it’s from the UK or abroad. But there are special rules for UK residents whose permanent home (‘domicile’) is abroad.

Work out your residence status

Whether you’re UK resident usually depends on how many days you spend in the UK in the tax year (6 April to 5 April the following year).**

You’re automatically resident if either:

  • you spent 183 or more days in the UK in the tax year
  • your only home was in the UK - you must have owned, rented or lived in it for at least 91 days in total - and you spent at least 30 days there in the tax year

You’re automatically non-resident if either:

  • you spent less than 16 days in the UK (or 46 days if you haven’t been classed as UK resident for the 3 previous tax years)
  • you work abroad full-time (averaging at least 35 hours a week) and spent less than 91 days in the UK, of which less than 31 days were spent working
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