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Replies to Queries

10 November 2004
Issue: 3983 / Categories:


Readers' Forum


Replies to Queries — 1



Wide blue yonder



Readers' Forum


Replies to Queries — 1



Wide blue yonder


Our client will shortly be entering employment as a flight attendant. Difficulties arise in this scenario due to the individual's residence status. We have ascertained that in any given year the individual spends 20 weeks at her rented house in France; approximately six weeks spent in the UK; say, six weeks holidaying in various parts of the world; and the remaining time is spent fulfilling the requirements of the employment. The aeroplane is owned privately and therefore travels all over the world.


The individual, whilst not working on this particular contract in the past, has effectively been non-resident in the UK for at least the last ten years. Could readers assist with the following points?


First, a résumé of the likely tax rules applying in France on both the income from employment and ownership of rented accommodation would be appreciated. What would happen if accommodation were instead purchased freehold?


Secondly, the individual is taking up a contract with a Swiss employer, but the plane is registered in the Cayman Islands. The client has been encouraged to sign a Swiss contract of employment which gives rise to a number of deductions for healthcare, pension rights and Swiss withholding tax. Can the withholding tax be reclaimed?


Lastly, an alternative to signing a Swiss contract was for the individual to produce a form E101 from the UK. We have advised that this would not be possible since the individual has paid no tax or National Insurance in the UK for at least ten years. Would voluntary NICs permit the issue of form E101 or do readers believe this is an unnecessary step to take?


(Query T16,508)

Issue: 3983 / Categories:
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