Conflict / considerations combining Micro-entrepreneur status and UK Limited company?

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Legal Alien

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I'd be interested to hear from anyone who is the owner of a Ltd Co in the UK, resident in France and also registered as micro-entrepreneur here. Is it possible, advisable, complicated? What pitfalls might there be? In this case, the UK Ltd. has had nil turnover since 2020 due to Covid and the only income has been from the separate French ME business, but I think the best thing is to get things in order and legal.

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Mad-Hatter-1017809 1642414480

Presumably you have read the France UK tax treaty, but I suggest you re read it carefully and particularly Article 4 para 3 and consider how it might apply to you and your Ltd Co, if for instance you are the sole director and you run the company from your home in France.

Also consider your employment status in France. I believe that under UK law a company director who works for his company has to draw a salary, he can't take remuneration solely as dividends. If you are carrying out the work in France that means you are exercising salaried employment in France, therefore you must be registered with URSSAF, paying employer and employee cotisations etc etc etc.

It(s impossible to advise with no details but those are just two of the aspects that you should be looking at.

If the UK Co has had no turnover since 2020 you may decide this is a good time to knock it on the head. Either that, or get a grip. Surely you didn't move to France as director of a UK company without finding out the implications first. Read the tax treaty again, take professional advice if you don't fully understand it, and see if there is a way forward that will cover your back and not leave you open to getting clobbered whilst still being profitable.


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