Sorry Ann, I should have written 2018 not 2017.
It will be interesting to follow this as it unfolds… hopefully, it will be smooth-running…
I’d say it will be. It was to be implemented last January so they’ve an extra year to plan. What it does mean though is anybody who changes tax domicile from 2019 on won’t have the previous year’s tax bill to settle. It could be handy for and Brexit victims.
No problems John, my French friends have explained (as you stated) that they will pay tax only on any ‘sur value d’income’.
As my threshold is too low to pay tax it won’t affect me (unless some unknown rich relative leaves me a fortune in their will)
Hello my husband and I are in receipt of English state pension (I receive small private pensions) which we pay tax on once a year. The video seems to state that those in receipt of pensions will have their pensions taxed by the person providing - is this just in the case of private pensions. How will they tax British state pensions at source if your money is paid into an English bank account.
Patricia - the video refers to French pension income. Income from outside France is dealt with in the normal way. If you don’t already pay your taxes in monthly installments then, the main difference for you is that you will be in future. The monthly payment amount will be shown immediately if you submit your return/s online, or by mail if you don’t.
I had an interesting talk with a pleasant lady at the impôts on Wednesday, I was there with a few queries and my paper declarations. I don’t declare on line (don’t ask) so I then asked about next years prélèvement at source for the British.
They will take a monthly amount from your French bank based on your last couple of years return ( don’t know how they will do that for newbies). If the amount is wrong or your situation changes then you can ask for it to be modified. Everything will be done on line.
Come next April she will make a RV for me, we will then together set everything up on line
But, please do NOT panic folks… for those who are not on-line or, for various reasons, are not able/competent to complete online … you can still arrange to do it manually…but you will need to contact your local Tax Office and arrange it with them in advance…
Thank you for your kind response.
It seems to me that unless you have paid employment in,or a pension paid by, france , there will be little or no difference from the present system where you can opt to pay monthly by prelevement based on your previous year’s tax. If the proposed prelevement seems excessive to you (due to a drop in income ,say) , you can inform the tax office and offer a lower prelevement based on your own estimate. The proviso is that , if you are wrong, the tax due at “echeance” will be increased by 10%.
Here’s the text concerning Prélèvement à la Source from a completed return:
Votre Prélèvement à la Source 2019
Le taux de prélèvement à la source qui sera transmis, à l’automne, aux organisations vous versant des revenus est du: XX %
Le montant de votre acompte mensuel pour les revenus sans organisme collecteur (BIC, BNC, BA, revenus fonciers) ser du : € XX,XX
A partir de janvier 2019, il sera prélevé chaque mois sur votre compte bancaire.
This will sound familiar to UK folk… who have already been used to taxation … on the go…go…
I’m looking foward to it, as an accountant point of view
I used to do Payroll in my early working life… before computers… can you imagine that ???
No I can’t, especialy with all the lines of taxation we’ve got in France, not talking about all the specifications of different contract and taxe rebate calculated regarding the percentage over miniumum income, calculation of “indemnité journalière de sécurité sociale” when somebody is on sick leave etc etc … Some people in France are just paid to sit in an office and make rules so complicated ! Sometime a payroll needs two pages !!! It’s getting worse and worse every year ! Ah, and I forgot the taxe rates that change more than twice a year !
It’s a bit like knitting… some patterns are more complicated than others… but it works out in the end…
The early computer payroll systems were heaps easier than the manual method, with all those rate books and charts etc…
I went back to college (as a senior student) after of couple of years in the office… and when I got my final qualifications… I never went back to Payroll ever again… phew what a relief…
What I find unfair with this Income taxed at source, is for our youth. We employ plenty of students during the summer, that are not taxable, but as we won’t have a rate for them, we will have to taxe them at the average rate (7% I think). They only will be reimbursed by the state the year after.
And if for fun , some of you want to have a look at the social contributions paid in France, here is a link :