Cessation of professional activity in France: relations with URSSAF

The pursuit of a professional activity in France as a self-employed worker, independent professional or employer requires registration with URSSAF, the authority in charge of collecting social security contributions.

For many British workers who have moved to France to carry out a professional activity, difficulties arise when this activity comes to an end and they return to the United Kingdom, where they are duly registered and contribute to HMRC or other national security institutions.

In fact, a lot of people interrupt their activity in France but they overlook a fundamental step: the cancellation of their position with URSSAF.

The importance of deregistration from URSSAF

Many British workers mistakenly consider that the cessation of the professional activity in France, the return to the United Kingdom, starting a new professional activity and regularly paying contributions to HMRC are sufficient to automatically put an end to any obligation towards URSSAF.

In reality, in the absence of formal deregistration, the contribution status in France may remain active and continue to generate contribution obligations for the individual concerned.

For this reason, upon cessation of professional activity in France, it is essential to promptly close one’s URSSAF account in order to properly cease declaratory and contribution obligations.

Why does URSSAF continue to request contributions?

Administratively, in the absence of an official notification of cessation of activity and subsequent deregistration, URSSAF may continue to consider the individual as professionally active in the French territory.

As a result, the authority may continue to calculate and request social security contributions. Over time, this can lead to the accumulation of significant amounts, even though the worker has moved their tax residence to the United Kingdom and is regularly paying contributions to HMRC.

Many contributors only become aware of the issue when they receive a payment claim, a formal notice or a debt collection act relating to periods during which they had already returned to the United Kingdom and were carrying out their professional activity there.

Recovery of social security debts and cooperation between States

It is also necessary to keep in mind that non-payment of amounts requested by URSSAF may, in certain circumstances, have consequences outside French territory.

It cannot be excluded that French authorities may request assistance from British authorities, including HMRC, as far as it is within its competence, for the assessment or recovery of social security debts.

For this reason, it is advisable not to ignore communications received from URSSAF and to promptly verify both the legitimacy of the sums claimed and the possibility of challenging them.

Legal assistance

Our law firm assists British workers who, after returning to the United Kingdom, have received payment requests from URSSAF.

The fact that URSSAF requires payment of certain amounts does not necessarily mean that such amounts are actually due. In many cases, it is possible to challenge the claims by demonstrating that the professional activity in France had ceased and that, therefore, the requested contributions should be corrected, reduced or cancelled.

To this end, it is necessary to analyse several elements, including, for illustrative purposes, the actual date of cessation of activity in France, the absence of the pursuit of any professional activity of French territory, the taxpayer’s fiscal residence and any registration and contributions made to HMRC.

Our law firm assists clients in verifying the legitimacy of amounts requested by URSSAF, in collecting and organising the necessary documentation and in dealing with the French authorities in order to obtain, where the conditions exist, the reduction or cancellation of the social security debt.

With qualified lawyers in both France and the United Kingdom, Giambrone & Partners France law firm is able to assist clients with cross-border social security issues, coordinating relations with the competent authorities in both countries and providing comprehensive support both in the extra-judicial phase and in any potential litigation.