# Contractor with Ltd company in UK, and existing client not willing to amend contract



## yell17 (22 d ago)

I am an IT contractor on a day rate contract (outside IR35) working through my own Ltd company, and planning to move to France next month with my family (I am French citizen, moved to UK when I was a minor). Existing client not willing to amend my UK contract (9 months left on the contract) so I would be stuck working through my UK ltd company. How can I best arrange this in terms of registering in France for the relevant taxes, drawing a salary in France etc.


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## Bevdeforges (Nov 16, 2007)

Set up a French business entity (exact type depends on how much you are billing). The business entity will register with the various agencies and set you up with the payment systems for taxes and social insurances. Contact the CCI in the departement in which you are planning to move. It may be possible for your UK ltd company to register as a French employer, though you should talk to the CCI about that alternative. It could wind up more complicated.


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## EuroTrash (Sep 3, 2013)

This explains the procedure for a UK Ltd Co to "embaucher" an employee in France and register them for social security etc without the need to establish a corporate presence in France. 





Entreprise étrangère sans établissement en France - Urssaf.fr







www.urssaf.fr




However I'm not 100% sure it's possible if the sole director of the UK Ltd Co and the employee are one and the same person.
And there remains the complication that when a sole director of a UK Ltd Co lives in France, and the company has no establishiment, no employees and no, or minimal, business activity in the UK, France can potentially tax it as a French business. You need to read the FR>EN tax treaty for chapter and verse on this.

Alternatively since you are genuinely outside IR35 which pretty much equates to the French differentiation between salariat déguisé and being a genuinely independent contractor, and if this is just going to be an interim arrangement prior to setting up your company in France, you might be able to argue a legitimate case for registering as a micro entreprise in France and simply billing your Ltd Co. Which would be simpler and cheaper, but would not give you the same level of social protection. And wouldn't avoid the issue of your Ltd Co potentially being treated as a French company.

As Bev says, have a chat with your local CCI but bear in mind that their expertise is in setting up and operating businesses in France, they won't necessarily be aware of the cross Channel issues.


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## Bevdeforges (Nov 16, 2007)

Depending on the type of business entity you set up, it may be possible for the UK Ltd Co. to be a "shareholder" in the French business entity. This is where the CCI should be able to guide you on the French side of things. How this would affect your UK tax and payroll obligations, however, is something you would have to resolve with the appropriate UK authorities. If this is only going to be required for another 9 months (until the end of the current contract) it may or may not be worth the hassle.


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## yell17 (22 d ago)

Many thanks for the response. My spouse also contracts through the same Ltd company so does that help as the Ltd company has 2 shareholders?
I came across the option of Umbrella company / Portage salarial but seems quite high fees are charged for this option


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## Bevdeforges (Nov 16, 2007)

You really need to discuss this with the CCI to get a clearer picture of what your options are.


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