Hi, thought I would start a new discussion for paying 2013 tax questions as each year some things have changed. Please ask any questions and volunteer any tips here!
Sheila, We've been through the hoops of dual taxation between Ireland and France over the years. We're only too happy to share our experiences with you if it helps. I've paid for (mostly worthless) PWC and KPMG advice so we have a pretty good handle on how it works. I've sent you a "friend thing" .
Good advice Doreen.
Probably too late to help you with this Robin but you do not need to include the P60. Just keep it on file for three years in case of audit.
Ok, Soggy. Got ya. So the same could happen to me. I have the certificate of interest from my bank. Think I will write on it in big letters (in French) TAX ALREADY PAID. As it's my first return, they don't have a bank account for me so can't take any money they think is due.
Thanks for the input. Yours, Grumpy (formerly known as Crusty). :-)
The tax on the interest was taken off at source by the bank as if I lived in the UK, so I had effectively paid tax. They then send me a statement with the net interest received and the tax paid and I had to declare both of them to the French authorites. Therefore, I paid tax twice.
I should have declared myself non-resident in the UK and just declared the gross interest in France.
No.
The tax I paid in France on the UK tax was minimal, however, we definitely paid it. My own fault for not finding out where I should pay it. I'm not sure I'm explaining this well, basically we only got the net interest after tax in the UK, but we had to declare the gross interest in France. Is that clearer?
It's all a bit confusing (understatement of the year in this household!). We paid tax last year on our savings and used the remaining interest to live on. The rate is 30%. I have downloaded Form 2047, and am now struggling to understand it all. For example, on page 3: "C - Crédit d’impôt : taux applicables aux revenus nets de l’impôt prélevé à la source" , for Ireland it just has numbers but no rate. I can't find the Notice Explicative to look up what these numbers mean.
And Tracy, you may be right about the function of our tax office. I just marched in - perhaps I have to go to Carcassonne, and the poor fonctionaire in the village was just trying to help. I will check in the morning.
Crickey thats lucky, we are a small town of 6000 inhabitants, we have a Tresor Publique but need to drive 10 miles to Chalon for teh Hotel des Impots. And I visit quite often - I'm on first name terms with the Directeur des Impots des Societies, I think he knows me as 'oh no, not that English woman again'
If you are receiving interest from the UK as a non-resident, then you have to pay the tax in France - you have to pay it somewhere. We have never been taxed twice on the same amount, when my husband paid tax in the UK, they took it into account before the tax here. Mind you, until last year we never earned enough to pay tax anyway, so if you only have a small income it is better to pay tax here than the UK - not sure about Ireland though.
Stu, are you saying you were taxed twice? I was certain up to today that there was no double taxation. Can you give a bit more information? Thanks.
Absolutely right about the random checks Tracy. We received a letter two years ago about interest in the UK. Our bank had declared it to the tax office in the UK and they supplied it to the French. We not only had to pay tax on the interest, but also on the tax we paid in the UK, work that one out. As you can imagine, it was quite a shock when we got a bill for 1250€. The lady in the tax office was wonderful and realised we genuinley didn't know what to do at the time. I suppose we should have asked, but I was of the same opinion as Sheila thinking that if tax had been paid in the UK then I didn't need to declare interest. How wrong can you be!! I now submit the 2047 form even though the sum has gone down significantly due to the pruchase of our house in France.
Thanks for that Tracy. In our small village, it is all in the one place, so apologies for the confusion.
Hi Sheila,
All income has to be declared even when the tax has been paid, you just declare it as tax paid in teh correct box, can't remember which one as we don't have any other income. I would not recommend that you don't declare it as they do do random checks -especially if you appear to be living on no income at all. Someone here must know which box it is called, please?
Also 'Tresorie' is where you pay your bills not where you declare your income so that may be why your neighbour was confused. It is the Hotel des Impots you need to help you fill your form in.
Henry has to be declared on the main form, rumour has it the new form has 'Declarant 1' and 'Declarant 2' as opposed to 'Vous' and 'Conjoint' this means you have a legal relationship, 'ayant droit' means he is your dependant for health care, totally different and irelevant for the tax declaration in these terms.
Thanks Tracy :)
My OH is AE with labour and materials seperately, they need to be declared separately as shown on the attestation - do not complicate things by trying to explain they are wrong unless it is grossly out.
Labour and materials have a different 'abbatment', I think it is about 71% is disregarded for materials before you are taxed and it is 30% or 50% abbatment for labour depending on if you are BIC/BNC or so on - don't worry it is calculated automatically.
For the labour, am not sure if it is the same thing but I have recently changed to EI and have joined a 'Centre de Gestion Agree'. One of the benefits is that my CA will NOT be augmented by 25% for tax purposes as is usual with business income - didn't know they did this but maybe the same thing applies to AE's. Has anyone else checked if the figures agree with the attestation?
Help! I have a question from a reader whose OH is under Regime micro-social simplifie, which is part of the AE for artisans and has received an "attestation" which shows the materials and labour separately ....
She says "We do tax declarations in Jan, Apr, Jul, Oct each year and on our 3 monthly returns we get charged 14% on materials and 24.6% on services.
If I add up the materials and labour for each return in jan 12, apr 12, jul 12 and oct 12 the materials total is the same as the attestation but the labour is out? I know I cocked up last year as I put €1200 in my yearly tax return 2011 as we got paid this in dec 2011 but it actually went on the Jan 12 return if this makes sense!
Do I put what is on the attestation which shows the materials and labour separately? I've checked last years return and I actually didn't declare anything on the 2042 for 2011, so I'm really not sure why the attestation for labour is €600 more than the four returns I did last year!"
Anyone got any bright ideas please?
Thanks Doreen. I can't remember his name, so I will think of an excuse to call in tomorrow (they are closed in the afternoons) with another question, and take not of the name. By the way, I met my neighbour Rollande and mentioned that I had spent an hour in the Tresoirie and was none the wiser. He didn't seem surprised. :-)
Hello all. Went round to the tax office this morning - was more like that Monty Python sketch "I would like an argument" where Michael Palin requests a five minute argument with John Cleese.
I went in with my 2042 CK Pro filled out as per Attestation. I also had downloaded (thanks Val) and printed Form 2042. It seemed to me that he had never seen 2042 CK Pro before, and he took a full ten minutes reading through it, veryifying back with the Attestation, and then finally said that seems fine, and handed it back to me! I said but surely I must complete 2042. No, says he. Yes, says I. He finally agreed that the last two pages should be completed. He took out an immaculately and precisely pared pencil and drew a line through the documents I did not have to fournissez, and handed that back to me!
So, I am none the wiser but am sure I must declare the fact that we have savings back in Ireland (even though the tax is paid and I have a certificate from the bank confirming this). He also said not to worry, that if I got it wrong, "they" would send me a letter. At this stage it was midi (we could hear the church bells) and he looked at his watch. I wished him bon journée, gathered up all my paperwork and left.
So what do I do now?????