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Posted Mon, 28 Nov 2022 07:11:34 GMT by Daniela Filipe
Hello, I have recently moved from the UK to France and started my own company. I take a salary from my company and pay tax and social security contributions in France. One of my clients is a UK company who, as I worked in the UK with them in the past, insist that I need to keep paying PAYE tax contributions in the UK. They have deducted PAYE and National Insurance contributions from my French company's invoice. Is this correct? Should they not be paying my company in full and then I (as an individual) submit my tax return to HMRC and pay the relevant tax as needed? I understand that a double taxation agreement is in place between the UK and France and that I can request a repayment of UK income tax at the end of the financial year, but am wondering if the UK company's approach of taxing the French company's invoices is correct? Many thanks Daniela
Posted Tue, 29 Nov 2022 17:53:24 GMT by HMRC Admin 10
If you are a an employee of a UK company and you are resident outside the UK, while working for that company, the employer can submit a S690 request for a direction to operate PAYE on the employees earnings.  
If your contract with that client is through self employment, then you should be paid gross, as this income will be taxable in France and not the UK. For more detail, please telephone the self assessment helpline on 0300 200 3310.
Posted Wed, 30 Nov 2022 07:55:20 GMT by Daniela Filipe
Thank you for the response. Just to clarify, I am employed by a French company of which I am also a director, and my client is a UK based company. From reading the above, I understand that the French company's invoices should be paid gross. Is my understanding correct? Many thanks, 
Posted Fri, 02 Dec 2022 13:40:07 GMT by HMRC Admin 32

Yes, that is correct.

Thank you.
Posted Mon, 02 Jan 2023 12:05:41 GMT by Daniela Filipe
Hello, Would the fact that (under the tax residency tests on HMRC's website) I still qualify as a UK tax resident change the advice given previously? I.e. should the French company invoices still be paid gross? What if some of the services my French company provides fall under IR35 in the UK? Thanks
Posted Fri, 06 Jan 2023 11:58:05 GMT by HMRC Admin 32

The invoices should still be paid gross for you to then pay the tax and National Insurance via your tax return.

Thank you.

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