Retired here in 2012 and completed my tax form that year : nothing to pay as my income was / still is simply an old age and a teacher’s pension. Nothing has altered (other than no wife now) but I have been hit with a tax bill of 800+ euros. Apparently this is correct but I have no idea why it has changed. Any guidance would be much appreciated to put my mind at rest as the local tax office has proved itself pretty unhelpful, often offering the wrong advice. Thanks in advance
It does sound very unlikely that you are genuinely liable for more tax at this stage. Some of the boxes on the form have changed a bit and i wonder whether you might have inadvertently filled in the wrong one?
I am definitely not an expert but there are quite a few in here that are, including the ever-helpful @George1 but I don’t know if he’s around at the moment.
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Sorry to hear of your loss but was this since previous tax year? As that could be the difference as you are now only 1 part, not 2. If her income was less than yours perhaps as 2 parts you stayed below threshold?
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Just a thought - teacher - early retired ? Although reference to OAP pension would imply not - or has that just ‘kicked in’ ? The french tax authorities have been ‘wrongly’ ? applying tax to the time between early retirement and UK state pension age - and then declaring it as ‘taxable’ haven’t they ? Maybe early retirement - and the tax bods checking back to get every euro they can ? Just a possibility - although 800 euros is an nasty shock. But what do I know?
Perhaps you could input the amounts for this and the last few years into the tax simulator to see what differences there are.
Fullest sympathy, Henry, for your loss…
I agree with Jane that (in the absence of any other change in your income or circumstances) it is perfectly possible that becoming ‘one part’ (ie single) in tax terms as opposed to two (ie a married couple) can make a material tax difference. For example, if you had a UK state pension of say €13k and a teachers pension of say €20k (totally estimated figures) you’d pay no tax if taxed as two parts (married) and about €2.7k (before tax credits due) if single.
Here is the tax simulateur that Larkswood helpfully mentions..
One other point. Is the (UK?) teachers pension reported correctly as pension that is entitled to a French tax credit equal to the French tax (ie so no additional French tax is due) - this is box 1AL on your tax return as opposed to 1AM for the UK state pension (for which there is French tax due)?
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Not all teachers pensions are taxed in the UK as government pensions so it maybe the OPs pension is not.
Yep, just FYI @George1 hairbear is right teachers pension scheme is not government, however if any teaching staff are enrolled in LGPS schemes then obviously gov pension.
In my experience my local tax office has always been helpful and sort of… humane. Maybe they don’t understand your issue. I’m sorry to read you’re flying solo now, but I think Jane’s explanation is probably the most likely. There are supports that help one through the painful transition from married to single. If I remember correctly, when my wife passed away in December 2013 I continued to have two parts for one or two years afterwards. Maybe this is what’s run out in your case.
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Sorry you are having problems… do you have a trusted French speaker who could go with you to your Tax Office and speak with them on your behalf… ??
The Teachers’ Pensions fund is taxed at source in the UK. It covers teachers and also staff in the post 1992 universities: older institutions use the USS (Universities Superannuation Scheme) which is taxed in France.
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Thank you all very much for your replies with so much good advice /information : much appreciated.