France vs UK Contractor Tax 2025: Freelance Comparison

Compare freelance structures between France (micro-entrepreneur, EIRL) and UK (sole trader, limited company, IR35). A £/€80,000 revenue nets ~€52,000 in UK limited company versus ~€48,000 France micro-entrepreneur. Understand VAT, social charges, and administrative burden to optimize your freelance base.

France Contractor Regimes

Micro-Entrepreneur (Auto-Entrepreneur)

Revenue Cap: €77,700 (services), €188,700 (goods).
Flat Tax: 21.2% (services) on gross revenue (includes social + income tax).
VAT: Exempt up to threshold.
Net (€80,000 services): €80,000 × 78.8% = €63,040

EIRL / EI (Full Regime)

Income Tax: Progressive IRPEF (0-45%) on profit.
Social Charges: ~45% of profit (URSSAF).
VAT: Charge 20%, deduct input VAT.
Net (€80,000 revenue, €20,000 expenses): €60,000 profit → €60,000 × 55% ≈ €33,000 net

UK Contractor Structures

Sole Trader

Income Tax: 20-45% on profit.
National Insurance: Class 2 (£3.45/week) + Class 4 (9% on £12,570-£50,270, 2% above).
Net (£80,000 revenue, £10,000 expenses): £70,000 profit → ~£48,500 net

Limited Company (IR35 Outside)

Corporation Tax: 19-25% on profit.
Dividends: Extract via £12,570 salary + £50,000 dividends (8.75% tax).
Net (£80,000 revenue, £10,000 expenses): £70,000 profit → Corporation tax £14,000, dividends tax £3,289 → ~£52,700 net

Comparison Summary

Winner: UK limited company (outside IR35) offers highest net, but requires accounting, compliance, IR35 risk. France micro-entrepreneur is simplest for moderate incomes under cap. Full regimes (EIRL, sole trader) suit high expenses or VAT recovery needs.

Next Steps: Use our freelance calculator to model your specific revenue/expense scenario. Consult accountants in both countries for personalized structure advice and IR35/URSSAF compliance.

France vs UK Contractor Taxation 2025: Freelance and Self-Employed Comparison