For the revenus 2017 do we enter the amount on the Apr 2018 P60 or do we have to apportion - ie 3 mths of P60 2017 + 9 mths of P60 2018? Thanks!
Hi Wendy - yep you need to enter your actual income figures for the period 1 Jan - 31 Dec 2017 - converted into Euros of course
Wendy… is this your first Total Income Declaration here in France ??
Morning Stella ! Good question as if Wendy became French resident during 2017 - that would involve pro-rating from date of residence to 31 Dec 2017.
Morning Simon… I was also thinking… that if this is a first declaration… Wendy would be best advised to take all her bumpf and go to her local offices
Thanks for the prompt replies Simon and Stella. We became resident in 2016 so this is in fact our 2nd year of doing tax return - last year we did go to the tax office and got some great guidance, but had only started to receive pension income part way through the year so the apportionment question didn’t arise.
Wendy - just use the amounts that hit your bank account up to 31 Dec 2017.
If the UK do NOT deduct Income Tax… as Simon says… just use the amounts on your bank statements. (let’s face it, your P60 shows if you’ve paid UK TAX)
If the UK has deducted Income Tax… make sure you put the Gross amount (before Tax) on your Declaration… and you can work this out from the P60’s.
Then, the French Tax Office will do their own calculations and only charge you Income Tax if they feel you owe them more than you have already paid in UK…
French Allowances are generous … so all should be well…
The first job that I do is to set up a spreadsheet for the tax year in question from January to December. As my income is from a Government pension I am taxed in the U.K. on that money so I transfer the gross monthly income from my payslips onto the spreadsheet then convert the total into euros.
Quite right David… I should do it every month, instead of once a year. This year has been horrendous as I agreed to go paper-free and just have statements etc on-line.
I have now put a system in place and have promised myself that the next Declaration will be a doddle.
Regarding using the P60 figure -some tax offices are known to have accepted this (as it all equals out down the years); in any case , it is highly unlikely that they will ask for evidence , and if they do , you can explain that you had been told the above.
The same applies to the rate of exchange you choose to use - in 25 years my rate (which is done as per the rule -“rate on the day” )-has never been queried, so I could just as well have invented a rate.
I hear what you say Parsnips… but it is just as easy to give the correct figures…rather than P60… and leaves nothing to be possibly queried at a later date.
There are folk who have done things “in good faith” but, never the less, incorrectly.
I accompanied one quaking couple to their Tax Offices… where everything was sorted out amicably enough… but, if they had done things correctly in the first place they could have saved themselves a great deal of distress as well as the small fine…
Nowadays, there is the agreement that “everyone is entitled to one mistake on their Declarations” and they may be let-off without a fine… so I’m keeping my “one mistake” for when I might genuinely need it…
As I think many do…
I know Simon and I have disagreed on this aspect over many years and he once told me to what what I like… so I do
I actually do a melange… as 2 pensions are paid direct to out French bank account in Euro I take that figure as a given; the other 2 are paid in sterling to our UK account and I use the closing year figure as at (around) the end of December as given by the Banque de France to convert the Sterling portion.
Why not just give your actual earnings for the tax year in question - just do what you’re asked to do - keep it simple :-
Hi, I do that . I was answering the OP , who may have a reason to want to do it another way.
Hi Patrick - Apologies for going a little ‘off piste’ but over the years you have given very sound advice. Could l ask - We always fill in forms 2042K & 2047K - I have a gov’t pension for which l receive a tax credit. This year for the first time l am having to declare a State pension too. I have completed a France Formula 1 and am not taxed on it in the UK. My question is “Where do l show this state pension in the TRAITMENTS SALARIES PENSIONS RENTES section of the 2042 and where on the Form 2047”? - I would be grateful for some advice.
2042 page 3 Box 1AM
2047 page 1 " PENSIONS RETRAITES RENTES " declarant 1 , add to all other pensions and put in end box , “cocher” “public” and “privé” boxes. transfer to 1AL (govt)and 1AM (state retirement) on 2042
Thank you Patrick - We really appreciate your speedy and very helpful response.
Hi Wendy - not knowing all the french tax rules & implication, I have engaged an English speaking French Tax agent. He is a switched on fellow and replies immediately and his charges are very reasonable compared with Australian Accountant’s. I have attached his link, in case you may require his service or at least ask him any questions. - cheers - his # is +33 6 41 02 65 56 & his name is Solenne. Tell hi I referred him to you & he will look after you. cheers Peter
Of course, Survive France has its own contacts for Tax Advisors and Specialists in many, many different fields…
Who give their advice for FREE… yippee
I’m sure @James will post the link for anyone who needs help/advice (as I can’t see clearly this morning)