Could you live in one country and work in another? To those of us who find the 45-minute commute into the City on the Northern Line stressful enough, the idea sounds ridiculous. But to the growing numbers of employees who have a certain degree of flexibility when it comes to working hours and days, working in one country and living in another is an increasingly appealing possibility.

The attractions of the cross-border commute are obvious. The south east of England is over-crowded and expensive, house prices are very high and good state schools are few and far between. France – the obvious choice for the cross-border commuter - has better weather, better healthcare and great schools. It is also cheaper: the cost of living in France is estimated to be around 25 per cent lower than in the UK, including mortgage costs. Moreover, because wages are higher in the UK, those earning money in the UK but living across the Channel see their monthly income go much further.

And it is not just France that is attracting the new commuters: they are flying into the UK from Spain, Italy, Ireland – even Morocco is now seen as within commutable distance of London. Some of these commuters will go back and forth on a daily basis – traveling from Nord Pas de Calais to Kent takes less than an hour – although those commuting from further afield will structure their working week so that they can spend a few days in one country.

The cross border commute has become feasible thanks to the rise in flexible working practices, technological advances such as the spread of wi-fi, and the massive expansion of low cost flights to Europe, and is likely to be given a further boost by the improvement of rail links to the Continent. Once the new, high speed terminal opens at St Pancras later this month, journey times on the Eurostar to Paris will take just 135 minutes, and to Brussels just 111 minutes.

“France – the obvious choice for the cross-border commuter - has better weather, better healthcare and great schools.”

Experts predict that cross border commuting is a growing trend. According to research by the Future Forum, a think tank set up by travel company Thomson, there could be 1.5 million people working in the UK but living overseas by 2016.

So what do you need to be a cross-border commuter? Flexibility in your work is a requirement. If you can do your job armed with just a laptop and a mobile phone, then you may be a good candidate. However, it may not be an easy life for those with children, nor is it a good idea for people who do not relish the idea of spending a bit of time in airports, or waiting for trains.

Tax

You also need to consider the practicalities. If you plan to commute to your UK job from abroad, you will need to examine the tax implications. In France, for example, you are deemed to be a French tax resident if your main home is in France. You can continue to be taxed through the UK PAYE system, but only if all your work is done in the UK. “If any of your work is done in France, even if you are just sending emails and making phone calls, you should in theory be completely taxed in France,” says Marjorie Mansfield, an associate director of Siddalls, a company which advises British people living abroad.

Although your UK PAYE earnings will be taxed in the UK, you will still need to complete a self-assessment tax return in France. Your UK income will not be taxed again in France, but you must declare it nevertheless. “Continuing with PAYE is usually only an option if you are on a short-term secondment, or if all of your work is done in the UK,” Ms Mansfield says.

Healthcare

In the past, in order to receive healthcare in France all that was required was a worker's E106 form, available to those who live in France but continue to work in any other European Union member state. However, there have been some changes to healthcare provision in France recently which have meant the situation is now more complex. Before you move, it is worth contacting the Department of Work and Pensions for the latest advice on worker's E106 forms, as well as whether a separate E form is necessary for any dependent family.

“If any of your work is done in France, even if you are just sending emails and making phone calls, you should in theory be completely taxed in France,” Marjorie Mansfield, Siddalls

What are the drawbacks?

Aside from the disruption to one’s day to day life, flying to and from Europe on a regular basis is not exactly the most environmentally friendly way to live one’s life. Moreover, it is possible that short-haul flights will become increasingly expensive as governments levy ‘green’ taxes on airlines and air passengers.

However Bob Lehner, 57, a veterinary surgeon who has lived in France for the past two and a half years, is one of the many who is enjoying the benefits of this lifestyle. He sold his practice in Hertfordshire in 2005. “I decided to move to rural France for an easy life. I bought a large place in the Dordogne with 30 acres of land where we keep horses and other creatures. Strangely enough, I quickly found that retirement was rather unfulfilling. I missed my work,” Lehner says.

Instead of returning to the UK, he decided to resume practicing on a part-time basis, and now works as a locum at six veterinary practices in Hertfordshire, Essex and Cambridgeshire. “I fly from Bergerac to Stansted, which is very easy and usually cheap. I usually go over for a couple of weeks at a time and then come back to France for a spell.”

Mr Lehner says that, so far, he has not encountered any problems. “I have tried to keep all the tax authorities happy and fully informed of my various sources of income. I have made use of a French accountant in order to avoid problems with the authorities here. I am aware that some Brits in France do not do things according to the rules, but I would rather sleep easy at night than worry about the taxman knocking at the door.”

By Paula Hawkins