Tax Payments for Dividends from French company UK resident

[mike3342]

Good afternoon all,

I am hoping someone may be able to assist with a Tax payment question.

I am English resident and pay tax, PAYE, on personal pension earnings currently. I do not break the 20% threshold.

18 months ago I invested a small amount of money in a start up business in France, created by my son, and was named as a director with a 10% share. If it is relevant the company is SARL. We are just coming to the end of the French financial year in September and results have been pretty good, so a small dividend is to be paid. There are 3 directors including myself, and the other two take a monthly salary. As they are English but French resident, tax and social responsibilities are paid through the French system by our French accountancy firm.

I have tried to gain knowledge of how to receive and pay the required tax on dividends but am struggling to understand the definitive answer.
I presume currently that as UK has a double taxation treaty with France I will receive full payment into UK bank account and then complete self assessment form in UK and pay that way to HMRC with French accountant informing the French tax office of such arrangement. The accountant is not knowledgeable on this point.

Is anyone involved in a similar arrangement of receiving foreign dividends and could confirm arrangements, or anyone with any knowledge help. I presume I would need to engage an accountant in UK to assist with this.

Many thanks in advance for any assistance.

[MaxFromage]

mike3342 said:

I presume currently that as UK has a double taxation treaty with France I will receive full payment into UK bank account and then complete self assessment form in UK and pay that way to HMRC with French accountant informing the French tax office of such arrangement. The accountant is not knowledgeable on this point.

You will need to submit a UK tax return which includes all of your income including those dividends (gross amount before tax) and any tax deducted in France (to get double tax relief). Bear in mind you will need to include the dividends on your tax return based on their receipt date.

[NorthDave]

I'd be incredibly surprised if the french don't want to tax you first and then you tell HMRC about taxes already paid.

I think you need to talk to a french accountant who has knowledge of both systems. I'm pretty sure EWP in Chamonix have been recommended to me in the past https://ewp.uk.com/

I also have details for an English guy, based in France, who is a financial advisor if you need those details too. He would be able to tell you exactly what is required.

[mike3342]

Many thanks both. I have taken a look at the EWP website and am going to contact them next week to discuss.

Thanks again.