foreign company doing business in UK

[123soleil]

Hello, are there any resources for foreign (EU) companies doing business in UK?

More precisely, my wife has a French company, and she has been offered a 12month contract in UK (she will continue to live in france and commute each weekend).

Are there any UK tax implications or will everything tax related be dealt with france? If anyone can point to information about this type of situation I would be very grateful

Thanks

[borderreiver]

On a 12 month contract in the UK she will also be tax resident here.

Best to get anaccountant to look into the best company setup to use (sole trader/UK Ltd/UK branch of French company ...)

[BlasterBates]

She probably won't be fully tax resident, but she will be paying tax on her UK income.

Your main tax residency is where your home is, and if you're married then that is where your partner is, if you return at least every two weeks. Unfortunately this will need to be demonstrated to the UK tax authorities, i.e. they will assume full tax residency until proven otherwise. There is the possibility of being completely resident in the UK, but that needs to be agreed with by the French authorities and if her partner is there I think that is unlikely.

She needs to either register her French company in the UK or set up a Ltd. It probably will be cheaper to set up a UK Ltd company because accountants generally don't know how to register foreign businesses. It might even be simpler to be an employee through an umbrella company.

She needs advice on how to pay her as she will have to declare income in France as well. What is tax efficient in the UK may not be if it's taxed again in France. For that she needs the opinion of a French tax advisor.

The double taxation treaty will mean that tax paid in the UK will be credited or indeed that UK taxed income is exempt in France depending on how the income is distributed. Salaries are treated differently from dividends.