Income being taxed at source in 2019

(stella wood) #1

Just had this little video that explains it all … plop into my Inbox…

(Ann Coe) #2

Something else to take on board then Stella, looks like 2019 is going to be a time of big changes ! Didn’t see any little pictograms of men in bowler hats there :slight_smile:

Not sure how this will affect us SF’s but no doubt there will be lots of information before the event (I hope) …

(John Scully) #3

What’s a “SF’s”?

(Ann Coe) #4

Sorry John, it’s Survive France users, but of course affects all of us British immigrants and anyone paying tax in France ! :thinking:

(John Scully) #5

It’ll affect everyone paying tax in France Ann. The good news is 2017 will be a tax free year :slight_smile: Bad news is you won’t notice that :frowning:

(Ann Coe) #6

I prefer the bad news first John, that way I know the worse and can look forward to an improvement :rofl:

(stella wood) #7

Hands up all of you who have actually watched and understood the video…???

'cos I did… and I can’t see that it will change anything at all for me…:relaxed:

(John Scully) #8

You won’t be paying any tax for 2017, that can’t be bad.

(Mary Wolcott) #9

I watched it twice, and my French comprehension is poor. I hope I understood. :slight_smile:

(Jane Jones) #10

There’s a website, if easier to look at the written word

Essentially it’s pay as you go (PAYE) but on pensions, property income, and business income as well as salaries. What I’ve not quite worked out is whether our gîte/rental income which is currently classed as location non professional meublée will now be viewed as professional business income even tho’ we are not auto-entrepreneurs. But there’s plenty of time yet to work it all out.

(stella wood) #11

Cheers Jane… I’ve worked my way through the link…

(John Scully) #12

Do people not understand that the tax they would owe for 2017 is being waived? It’s an enormous concession.

(Jane Jones) #13

Sure, but my experience of tax men and women is what they give with one had they take away with another…

(stella wood) #14

Not sure it is as straight forward as that… all I can find to read says… not to get your hopes too high…

although, with raised thresholds more and more folk will find they fall within the No-Tax bracket anyway.

(Dan Wood) #15

Sorry John - Are you saying that the tax we owe on our 2017 pensions income is being waived?

(Ann Coe) #16

Best try this first before you get your hopes too high …

(Ann Coe) #17

I think if that was the case John then my French friends would all be in 7th heaven and the government would have a huge defecit ! Somewhere along the line I think the wording may have been unclear.

(John Scully) #18

Sorry Dan, I should have written 2018. The Government have stated there will be no double prelevments in 2019 and the only way they can achieve that IMO is to waive 2018 tax. They have also said that exceptional income in 2018 WILL be taxed, thus one’s “normal” income (I think calculated as one third of the average of the last three years) won’t be.

(John Scully) #19

It makes no difference to the Government Ann, it’s just cash flow. It doesn’t make any difference to your French friends either because the will still pay tax next year, just in realtime not in arrears.

If they don’t waive 2018 how else can they bring every tax payer forward a year?

(John Scully) #20

It seems pretty straightforward Stella. In 2019 one will make a declaration of 2018 income as usual and then be given a tax credit, the CIMR ” Crédit d’Impôt de Modernisation du Recouvrement “ which will equal your “normal” income in 2018 making it nontaxable. Exceptional income during 2018 will still be taxed.