1-year assignment in the UK (detached worker contract): taxes, tax residency, pension… a bit lost
Posted by S9e6b@reddit | expats | View on Reddit | 8 comments
Hello everyone,
I’m looking for some advice because I’m a bit lost regarding the tax and administrative side of my upcoming work assignment in the UK.
I’ll try to summarize my situation:
I’m 30 years old and I work for a French company based in Nantes on a permanent French contract (CDI, cadre/forfait jours), with a gross annual salary of around €45k.
I currently live in France and I’m still fiscally attached to my parents’ address in Finistère, even though I don’t spend much time there anymore.
Upcoming situation:
In one month, I’ll be going on assignment to the UK for an English client.
It’s a detached worker contract through my French company, so I remain a French employee.
The mission is planned for 1 year, renewable once.
In practice, I’ll be living and working in the UK, but still paid from France.
Conditions:
- Housing + meal allowance: €1,335/month (to cover my expenses there)
- I’ll rent a flat in the UK entirely covered by this allowance
- Company car + fuel paid by the company
- Still on French payroll as a French employee
I have quite a few questions about what happens next:
- Will I remain a French tax resident, or can the UK consider me tax resident since I’ll be living there most of the time?
- Do I need to file taxes only in France, or in both France and the UK?
- How does it work in practice to avoid being taxed twice?
- For retirement/social contributions, do I continue contributing in France or also into the UK system?
- I’ve heard about the “183-day rule” - how does it actually apply in my case? If I go over that threshold, do I automatically become taxable in the UK?
- What would generally be the most advantageous setup in my situation, considering this is supposed to be temporary?
More generally:
- Is keeping an address in France enough to remain fiscally resident there?
- Are there any common pitfalls I should be aware of (banking, healthcare, paperwork, etc.)?
Since Brexit, I feel like a lot of things may have changed, so if anyone has already been in a similar situation or has useful information, I’d really appreciate it.
Thanks a lot!!
ginogekko@reddit
You need to talk to your employer. Tax liability will be an issue as well as that you’ll need a visa. You cannot work in the UK like that, for a French employer, for a year.
S9e6b@reddit (OP)
With my company we are currently finalizing the process to obtain my UK Service Supplier Visa. So regarding the visa, I will have one once I’m there. That’s actually what is delaying the start of my assignment 😅
ginogekko@reddit
Ok, disregard the above regarding the NHS then too. Tax residency will still be an issue I imagine. Also for €1,335 will not get you a flat in many parts of the UK, never mind meals as well.
S9e6b@reddit (OP)
Yes, I understand that the allowance provided by my company won’t be enough to fully cover both the accommodation and all my meals for the month 😅 Maybe I should have negotiated a bit harder. However, I’ll still be able to cover the remaining expenses with my base salary.
Do you think I will need to declare my tax residency in the UK?
ginogekko@reddit
Speak to a professional, also read up about Overseas Workday Relief
https://www.gov.uk/government/collections/uk-tax-residence-guidance#general-guidance-for-individuals
FinestTreesInDa7Seas@reddit
Vu ton budget, tu préfères crever de faim ou dormir sous les ponts ?
S9e6b@reddit (OP)
Eh bien c'est difficile à choisir ahah Mais pour le coup je ne serai pas basé à Londres qui j'imagine est hors de prix.. Je serai à Leeds c'est peut être plus abordable
S9e6b@reddit (OP)
Eh bien c'est difficile à choisir ahah Mais pour le coup je ne serai pas basé à Londres qui j'imagine est hors de prix.. Je serai à Leeds c'est peut être plus abordable