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One man’s fish...

30 September 2014 / Steve Watt
Issue: 4471 / Categories: Comment & Analysis , Business , Employees , Europe , Income Tax , International
watt

...is another man’s poisson. Comparative costs of employee taxes and labour in the UK and France

KEY POINTS

  • Comparing the UK and French liabilities on income from a limited company or société à responsabilité limitée.
  • The importance of the correct remuneration strategy.
  • Diagrammatic comparisons of the relative liabilities.
  • French social security charges add to French labour costs.
  • Quirky rules can result in “cliff edges” in liabilities.

The UK may be more fiscally fit than we thought when we compare its tax and social security liabilities and labour costs with those in France.

This article looks at profit extraction for the small business in France and in the UK. Although some may disagree with such practice I have used the word “taxation” to cover both tax and National Insurance contributions.

Optimal structures

Let us start by considering the optimal structures for the...

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