If you are considering moving from England to France, then you are probably caught up in looking for houses, packing boxes and finding the perfect breakfast spot for your freshly-baked croissant. These are all joyful and important parts of moving to Europe, but you need to make sure you have your paperwork in order on both sides of the English Channel. If you don’t, you could get hit with a big bill.
In the UK
• You need to let the tax authorities (HMRC) know that you are leaving. This is quite simple to do – download and fill in a Form P85 (or pick one up from your local tax office). If you usually submit tax returns then you need to make a non-resident declaration when you next file your paperwork.
• Make a decision about whether you will keep any UK bank accounts. Any interest you acquire on these can be taxed by the French at up to 45% so it’s not always worthwhile. If you are keeping them then make sure your address has been changed to either your overseas address (though not all banks will allow this) or a care of address in the UK.
• If you will receive any rental income from a UK property then you can advise HMRC this will be taxed through the French authorities using form NRL1i.
• State pensions will also need to be declared to the French authorities and are subject to no UK taxes. However, personal pensions paid to you from Britain may still have tax taken at source until the British authorities are satisfied you have completely relocated. To do this you will need to have the French tax office complete the Form France/Individual and send the stamped and completed copy to HMRC.
If you’ve left the UK
To claim tax relief or any tax refund you’re owed and to tell HM Revenue and Customs (HMRC) about any UK income you continue to get, you can either:
- use the online service (sign-in or set up a Government Gateway account)
- fill in form on-screen, print and post to HMRC
If you use the online form, you’ll get a reference number that you can use to track the progress of your form.
• The French authorities consider you liable for their taxes on your worldwide income from the day you arrive. You will need to give these details in a tax return filed at your local tax office by the end of May each year. This will be a declaration of all income you received between the beginning of January and the end of December. French tax rules are very complex so it’s worth getting professional advice on managing your capital, savings, pensions and investment.
• Once you complete the French Form S1 and take it to your local Caisse Primaire d’Assurance Maladie, you will be able to use the French healthcare system (providing you’re eligible). This will cover most of the cost of any treatment you have, but you will still need extra insurance to meet the full bill.
• Once you’ve chosen your perfect house, you should also register with the local mairie, or town hall. This is both a requirement and a nicety. These offices often run “meet the newcomers” sessions which will help you settle into your new surroundings (and let you know just where the best croissants are found.)
Are you moving from England To France – let us know and our friendly team will assist you all the way.