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    • janepn
    • By janepn 11th Aug 18, 4:40 PM
    • 16Posts
    • 1Thanks
    janepn
    French company - pension set up
    • #1
    • 11th Aug 18, 4:40 PM
    French company - pension set up 11th Aug 18 at 4:40 PM
    Hello

    My husband is becoming a partner in a French company and is sorting out his contract with them currently.

    He needs to set up a pension with them. The other partners are French so their set up is different. He's employed by the French company but lives in the UK. Can anyone help with the best way to sort this out? The French company obviously needs to contribute to the pension. We don't know where to start really.

    Many thanks in advance for any help/pointers..
Page 1
    • Brynsam
    • By Brynsam 11th Aug 18, 4:52 PM
    • 1,740 Posts
    • 1,278 Thanks
    Brynsam
    • #2
    • 11th Aug 18, 4:52 PM
    • #2
    • 11th Aug 18, 4:52 PM
    Hello

    My husband is becoming a partner in a French company and is sorting out his contract with them currently.

    He needs to set up a pension with them. The other partners are French so their set up is different. He's employed by the French company but lives in the UK. Can anyone help with the best way to sort this out? The French company obviously needs to contribute to the pension. We don't know where to start really.

    Many thanks in advance for any help/pointers..
    Originally posted by janepn
    Is he going to be paying tax in the UK? You say he is going to be a 'partner in a company' - what exactly is the relationship: shareholder, director, employee...?
    • squirrelpie
    • By squirrelpie 11th Aug 18, 11:02 PM
    • 96 Posts
    • 42 Thanks
    squirrelpie
    • #3
    • 11th Aug 18, 11:02 PM
    • #3
    • 11th Aug 18, 11:02 PM
    Is he going to be paying tax in the UK? You say he is going to be a 'partner in a company' - what exactly is the relationship: shareholder, director, employee...?

    Or maybe a partner? ??!
    • Marcon
    • By Marcon 12th Aug 18, 12:08 AM
    • 569 Posts
    • 423 Thanks
    Marcon
    • #4
    • 12th Aug 18, 12:08 AM
    • #4
    • 12th Aug 18, 12:08 AM
    Or maybe a partner? ??!
    Originally posted by squirrelpie
    Partnerships have partners....not companies (although investors may be described as such, in which case the question about pensions wouldn't arise).
    • FatherAbraham
    • By FatherAbraham 12th Aug 18, 4:55 PM
    • 914 Posts
    • 680 Thanks
    FatherAbraham
    • #5
    • 12th Aug 18, 4:55 PM
    • #5
    • 12th Aug 18, 4:55 PM
    Hello

    My husband is becoming a partner in a French company and is sorting out his contract with them currently.

    He needs to set up a pension with them. The other partners are French so their set up is different. He's employed by the French company but lives in the UK. Can anyone help with the best way to sort this out? The French company obviously needs to contribute to the pension. We don't know where to start really.

    Many thanks in advance for any help/pointers..
    Originally posted by janepn
    Where will he pay income tax? Where is he tax resident? If UK, then UK tax law is relevant.

    A pension fund is about deferring income until later in life, and consequently about deferring taxation of that income.

    One cannot get tax relief on UK pension contributions which exceed the larger of one's annual taxable earnings and 3600 per year.

    Making non-tax-relieved contributions to a UK pension scheme is normally insane, since all withdrawals are taxed as income, less a 25% tax-free allowance.
    • janepn
    • By janepn 13th Aug 18, 10:22 AM
    • 16 Posts
    • 1 Thanks
    janepn
    • #6
    • 13th Aug 18, 10:22 AM
    Pension advice - French employer
    • #6
    • 13th Aug 18, 10:22 AM
    He's a shareholder but not an employee so is paid via his own UK limited company. This is the way the French want it set up but they acknowledge that he is entitled to the same benefits as they are - ie pension etc. So yes, tax etc will be paid in the UK.
    Thanks in advance for any advice you can offer
    • janepn
    • By janepn 13th Aug 18, 10:56 AM
    • 16 Posts
    • 1 Thanks
    janepn
    • #7
    • 13th Aug 18, 10:56 AM
    • #7
    • 13th Aug 18, 10:56 AM
    Sorry, just to clarify, he needs to set up his pension in the UK and the French will contribute somehow even if he pays the full contribution each month and they re-imburse him.
    • FatherAbraham
    • By FatherAbraham 13th Aug 18, 12:04 PM
    • 914 Posts
    • 680 Thanks
    FatherAbraham
    • #8
    • 13th Aug 18, 12:04 PM
    • #8
    • 13th Aug 18, 12:04 PM
    He's a shareholder but not an employee so is paid via his own UK limited company. This is the way the French want it set up but they acknowledge that he is entitled to the same benefits as they are - ie pension etc. So yes, tax etc will be paid in the UK.
    Thanks in advance for any advice you can offer
    Originally posted by janepn
    He's an employee of a UK company, and that UK company will pay him a salary, which can be tax-deferred by posting it into a pension.

    Note that dividends from his company are not earnings, and can't be tax-deferred into a pension fund.

    There's no French aspect to this post of the setup. How his company gets the money pay into his pension is not a concern of pensions legislation.
    • Brynsam
    • By Brynsam 13th Aug 18, 12:15 PM
    • 1,740 Posts
    • 1,278 Thanks
    Brynsam
    • #9
    • 13th Aug 18, 12:15 PM
    • #9
    • 13th Aug 18, 12:15 PM
    He's an employee of a UK company, and that UK company will pay him a salary, which can be tax-deferred by posting it into a pension.
    Originally posted by FatherAbraham
    OP - is he an employee of his own limited company, or simply a director? It makes a difference to how pension contributions are handled. A stakeholder pension would satisfy auto-enrolment requirements if the UK company will have employees other than your husband. If he is the sole director (and possibly sole employee), then up to him what he does - possibly a SIPP?

    Either way, the simplest thing is for the French end of the deal to agree an amount of remuneration which will be paid to the UK company which covers everything including benefits. Much the easiest way to go about things. Do remember to specify the currency in which this will be paid!
    Last edited by Brynsam; 13-08-2018 at 12:39 PM.
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