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Declaring interest on UK income: a million questions from a first-timer!


chocolatefish
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I need to declare the following for the first time (hopefully in future years it'll be easier!) I would be very grateful for some help completing form 2047 and what goes to where on the main form. I have found various clues on other websites, but am not sure that they are correct.

1. Interest on UK bank accounts. What goes where on form 2047? I have calculated the gross interest from all our banks / savings accounts. Does it go in 2B somewhere?

2. Dividends received on UK Funds. I have read elsewhere to add the dividend PLUS the tax credit, which I have done, and have my totals. Does this also go on 2B? Which columns?

3. UK Rental income. Am I right to think that I just take the total gross rental income over the year 2013-2014, and put that figure in Section VII? Where?

We will be completing the actual forms online, which may or may not be easier!

What exchange rate to use? Just todays - which is 1£ = 1.35 euros?

Sorry to be such a dunce, as I say this is my first time completing these forms. I'm tempted to find an accountant to do them - but if you've seen my previous thread, we haven't had great experiences in that respect so far :))

TIA
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Why on earth would you want to even consider using today's exchange rate for income for the whole of 2014?

The bank of England spot rate for last year is 1.2411, which means that you had far few €'s to your £ last year than you would this year.

If I had a problem with a form, I'd call or go into my Hotel des Impots. That's what I always did and would do.

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[quote user="chocolatefish"]I need to declare the following for the first time (hopefully in future years it'll be easier!) I would be very grateful for some help completing form 2047 and what goes to where on the main form. I have found various clues on other websites, but am not sure that they are correct.

1. Interest on UK bank accounts. What goes where on form 2047? I have calculated the gross interest from all our banks / savings accounts. Does it go in 2B somewhere?    Page 2 on 2047 sec 2B right hand box -GROSS interest then (as form says) transfer to 2042 box 2TR.

    2. Dividends received on UK Funds. I have read elsewhere to add the dividend PLUS the tax credit, which I have done, and have my totals. Does this also go on 2B? Which columns?   Page 2 2047 sec A follow directions on form .

   3. UK Rental income. Am I right to think that I just take the total gross rental income over the year 2013-2014, and put that figure in Section VII? Where?     

No , if let unfurnished and if annual rent is less than 15000€ put gross  in 2047 sec VI  , also on line 4BE on 2042 , and most important on 2042 8TK  to get credit.
     If it doesn't fit the above ask at the tax office (or make it fit)

We will be completing the actual forms online, which may or may not be easier!

What exchange rate to use? Just todays - which is 1£ = 1.35 euros?

Sorry to be such a dunce, as I say this is my first time completing these forms. I'm tempted to find an accountant to do them - but if you've seen my previous thread, we haven't had great experiences in that respect so far :))

TIA[/quote]

The legal exchange rate to use is that on the day the income was received - you can find this on www.xe.com    historic charts  you will only need 12 figures if you are paid monthly  - you will find these rates to you advantage.  But remember - at the end  of this calculation , any tax or social charge calculated is annulled  by credit under the treaty, so it isn't worth getting too tied up with it.

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Hi parsnips, thank you so much.

1. I can't see any box asking for the montant brut in section 2b. There is a large box which is split into three sections, dividendes non eligible..., interets..., and jetons de presence. They all ask for montant net. Am I looking at a different form?

2. Noted.

3. Furnished, but under 15000. I guess we have to ask at the tax office. My OH who is the French speaker in our partnership, is really reluctant to do that as we should have been declaring these incomes previously, and he doesn't want to draw attention to it.

Exchange, noted, and will do.

It's not so much the tax / social charges etc, I do understand that the net result shoudlbe zero. it's more the prospect of fines etc for not declaring this in the past. It's not a lot of income in reality and nowhere near enough to push us into another tAx bracket. But still unsettling.

Thanks again for your help.

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Re. filing online - it has to be done on paper for the first time. I am doing ours for the first time and I have filled in all the boxes in pencil. Then i went to the tax office and the helpful lady checked it with me and we used the rubber and pencil. I think i will keep on using the paper one so that i can get it checked. The first time I went they had a booklet in English which was very helpful. As regards the list of accounts I will type that up and then next year just print off another set. I should add that I found the "notes" quite helpful, although I have to add that having been a French teacher for 35 years did help! If I am incorrect about everything, someone out there please correct me. The more time spent on it does make it easier! I am now on the stage of using a pen!
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Thank you mrsblack. We have filed all the other years online so hoping we can do the same with these extra pages. I thought my French was okay, I can get by fine in daily life and reading most things, but the tax forms have me stumped! I have to sit with the dictionary beside me and look up every third word!

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Hi,

  

 1. I can't see any box asking for the montant brut in section 2b. There is a large box which is split into three sections, dividendes non eligible..., interets..., and jetons de presence.    If they are in that order check you have the 2015 form -they have put interets on the far right this year. 

  They all ask for montant net. Am I looking at a different form? Although it says "net" you declare "gross" as they assume you have , as entitled , had it paid tax-free or refunded in the UK.

2. Noted.

 3. Furnished, but under 15000. I guess we have to ask at the tax office. My OH who is the French speaker in our partnership, is really reluctant to do that as we should have been declaring these incomes previously, and he doesn't want to draw attention to it. Download form 2042C-PRO and declare gross at box 5ND , you will get a 50% fixed allowance for expenses.

  Exchange, noted, and will do.

It's not so much the tax / social charges etc, I do understand that the net result shoudlbe zero. it's more the prospect of fines etc for not declaring this in the past. It's not a lot of income in reality and nowhere near enough to push us into another tAx bracket. But still unsettling.

Thanks again for your help   Generally penalties are not imposed on small tax-payers who have acted in good faith - even when they are ,ther are usually only 10% of the tax due,and there is a procedure " remise gracieuse" for being let off

  

 

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If anyone wants official i.e. Banque de France historical exchange rates they publish daily rates , month-end rates and monthly averages

https://www.banque-france.fr/en/economics-statistics/rates/exchange-rates.html

If you open each section and click on the currency - the rates go back to 1999
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