French hauliers aim to set up in the UK
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• While many British hauliers are hoping to base their vehicles on the Continent, it has emerged that as many French operators are considering setting up in the UK to avoid high French taxes.
According to Jean-Paul Meyronnein, editor of the new French magazine Transport & Business, hauliers fed up with paying higher social taxes including the French equivalent of national insurance are looking to the UK where rates are much lower.
Now he plans to put together a guide to Britain outlining the economic, transport and legal environment, specifically aimed at French firms hoping to operate over here. He says there is a huge interest throughout French industry in setting up subsidiaries in the UK, Spain and Germany.
Major French hauliers such as Norbert DentressangIe and Giraud have been present in the UK for years, but now that its maxi mum weights have been increased, Britain could start attracting more smaller French hauliers, says Meyronnein.
By paying employees in the UK they would pay lower UK taxes but could still base vehicles in France to take advantage of lower V1-.21) and fuel rates.
Tax variations encourage "flagging out" and the Germans have made it clear that they want to bring forward moves to harmonise tax rates across the EU during their presidency.
However, the UK Government has repeatedly promised that it will oppose tax harmonisation, and any moves in this direction could take years.