No longer UK tax resident - being honest

newsmonkey

New year resolution is to get my tax affairs in order. That probably means hiring an accountant - but here's my situation anyway, if anyone has information or has done something similar.

I left a job in the UK this summer and started living and working (employed) in France. I have a second job (self-employed) working remotely for a UK client - and I'm registered self-employed with HMRC. So basically, PAYE in France, self-employed in UK.

I've yet to tell my UK banks or HMRC that I have moved - partly because I had no idea how long I'd be here. They've been using a UK correspondence address (relatives) and I've still been paying UK NICs and have a self-assessment bill due next month.

I think it's about time I told them what's happening. I gather there'll then be various bits of toing and froing because of the UK/France double taxation treaty. I'm also a bit confused because the two countries have different tax years (France 1st January, UK 6th April).

Presumably I'll get a refund on all UK tax paid since I left. I'll then need to declare income in France and the tax I paid while legitimately working in the UK (before I left) counts as a tax credit against the year's earnings declared in France? I'm a bit confused - and it's this confusion which is making me a bit reluctant to get my affairs in order.

Is it straightforward? Need I worry? Have you done something similar and how did you find it?

fengirl_2

I can't advise you about French tax, but as far as the UK tax system is concerned, you dont need to do anything yet because you are still resident in the UK for tax purposes. You have t be out of the UK for a complete tax year (6 Apr to 5 Apr) in order to be able to claim non-residence. If you know that you are definitely going to remain outside the UK until 5 April 2011, then you can complete a P85 to claim non-residence now, but if you are unsure of your plans, then you need do nothing now. You will self assess at the end of the year in the usual way and pay tax on yur worldwide income. I dont know why you dont want the UK tax authorities to not know your address. You havn't doe anything wrong.

Cook_County

It sounds as if you are domestically resident in France under French rules, so subject to French taxes and social charges on worldwide income. You also need to charge and pay French VAT if you are within the French registration limits.

You may or may not be UK resident under UK domestic rules. Even if you are, it sounds likely you are treaty resident in France - not the UK - so France is now your primary taxing jurisdiction NOT the UK.

You will owe French tax in the New Year so seek an accountant locally.

newsmonkey

Thanks for the replies. I do need to get things in order asap, as I've already left it later than I should.

My main concern is a cashflow one: I've been paying NICs and self-assessment payments to HMRC that I now need to claim back -- while also being due soon for tax in France (and social charges on the self-employed stuff). Here's hoping the UK stuff is paid back before the French stuff is due to be paid...