Social charges on pension

[chirpy]

THANKS AGAIN.

HOWEVER ,

I HAVE SPENT today calculating tax by two separate mehods.

One ,as if I had  one  pension  and  the other  as if part of the pension was an annuity,classified in France as rente viageres(a taxable investment which attracts all the social taxation) . I was forced to put a pension  into an annuity when I was 51years old, in the U.K., following redundancy . this is where it has been liable for csg,crds and prelev.social.etc for the 9years I have lived here..

When I calculate as the simplified method used on the internet  for years 2001 ,2002,2003 ,2004and 2005 I WAS WORSE OFF  than if my annuity was accepted by the tax office as another pension.

Then for the years 2006 and 2007 there was little difference due to  French taxation and allowance changes.

This year I had a rebate of more than half the normal expected tax due to the credit exceptional  given by the government.I hope there has not been a big error and i get a claim to pay it back!!!

The crunch question is whether I am due back all the social charges as a holder of an E121  AND NOT GET TAXED WITH SOCIAL CHARGES  ON THE ANNUITY IN FUTURE.

IF THE TAXATION FOR THE NEXT YEARS WILL BE INCREASING THEN I may as well leave the annuity as is, as it is taxed  AT THE MOMENT on 50%, while if  i got it changed  into a  pension ,then on my  tax return  it will be taxed at 100% .

I hope you can follow my thoughts .

Do you know what the next 2- years planning on taxation is going to be as this could affect my next move.

thanks again.I WILLHAVE ACHAT TOMORROW WITH MY TRANSLATER TO SEE WHETHER I CAN SORT THIS OUT NEXT WEEK WITH THE TAX OFFICE.

At least the time withthe translater should be paid for by the 20euro deductionthe tax office forgot to credit me with for an online asseement/tax return.Un less they have dropped this offer which I did get in 2006.[8-)][:-))][:)]

well it is guyfawkes night ---a shame he got caught !!!!!!!!!!!!!!!!!!!!!!!!!![:P]

[parsnips]

Hi Ab,

        As your annuity was purchased as a result of a company pension scheme , it has to be taxed as a normal pension-not a rente viagere. As such it will be reduced by 10% before being added to your taxable income. It will also not be liable to any social charge -not CSG,CRDS or PS.

       Only self-purchased annuities totally unconnected with any works pension are taxed as rente viagere.

[suein56]

[quote user="Ab"]

At least the time with the translater should be paid for by the 20euro deduction the tax office forgot to credit me with for an online asseement/tax return.Un less they have dropped this offer which I did get in 2006.[8-)][:-))][:)]

[/quote]

AFAIAA you only get credited with the 20€ reduction the first time you fill in your tax return online, not subsequently.

Sue [:(]

[sweeper]

Further Update - Today I received the official letter agreeing that I am due a rebate to cover the overcharge. Very fast and efficient service on behalf of my local Tax Office. I hope that this will be of help and encouragement to any others who may have been charged incorrectly. It was really very simple and extremely painless. Many thanks to all for their advice. (Apart from the eronious part attributed to the Connexion) By there lies another tale. 

[Belle]

Hi Parsnips, I have tried to e-mail this morning to ask if I may please take you up on your offer of the letter needed to send to the tax office, to advise them that we shouldn't be paying social charges, and to ask for money payed to be refunded, however, my e-mails to you keep bouncing back.

[Belle]

Hi again Parsnips, still trying to send you an e-mail with our details for this letter, but the mails are still bouncing back what am I doing wrong.

[Clair]

Have you tried sending a PM?

[parsnips]

Hi Belle ,

 I have sent you an email and a PM via the forum asking you to send me your email address so I can send the letter via google docs. I don't think you should put your email address on the open forum. Perhaps a moderator can help?