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2008 tax ceilings on 2007 income


Clair
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Tranches de revenus et taux applicables aux revenus 2007 (IR 2008)

Income ceilings and rates applicable to year 2007 income (2008 tax)

Jusqu’à (up to) 5 687 €

0

De (from) 5 687 € à (to) 11 344 €

5,5 %

De (from) 11 344 € à (to) 25 195 €

14 %

De (from) 25 195 € à (to) 67 546 €

30 %

Plus de (over) 67 546 €

40 %
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Do you know what the allowence is for these brackets before you have to pay tax ?

Is there a difference allowence for each person or a married couples allowence?

If I wasnt working [:)] and my hubby was can he use my allowence ?

Are the allowences the same for self employed ?

For some one working in different countries , but paid by UK American and european companies

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The scales shown represent those for a single person with no children. married couples get twice the amounts and another 50% OF THE SINGLE SCALE FOR EACH ELIGIBLE CHILD. Other allowances exist in respect of persons of a certain age etc.

 

ams

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Thanks.  Starting to make sense. What tax free allowance would a married man with no other dependents receive?  I assume that the system is the same in France as the UK-ie you get a tax free allowance till the lower rate of tax (5.5%?) kicks in and then you move steadily upwards.

Alan D

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Cooperlola I think Alan and I are confused over the difference of tax bracket and tax allowence . Does everyone receive an allowence of 5,687e no matter what thier circumstances ? and can then earn up to the amount of each bracket to fall into that % ?      
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Here's a very simplified explanation of how the French tax system works.

You enter your income in the various parts of the tax form.

Certain income is subject to an initial allowance (eg, UK pension income qualifies for a 10% allowance off the top) which is deducted from your global income to leave your taxable income - this is your revenu fiscal de reference.

The remaining income is divided by the number of 'parts' in your tax household - one part for husband, one part for wife, one part for first child, half parts for additional children and people having certain benefits like invalidity entitlement, etc.

Each 'part' is then assessed according to Clair's tax bands.  Once the calculation is complete, the tax for each 'part' is added together to make the total tax payable.

Net effect is if the husband is the sole earner - a proportion his income is alloted to the other 'parts' of his tax household, so more of this shared income falls within their lower tax bands.

 

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Remember that the French income tax system takes the whole household income into account, not the income of each individual.

Then there are the allowances:

Situation familiale et enfants à charge Nombre

de parts (1)
  • Célibataire, veuf(ve) (2) ou divorcé(e) sans enfants à charge
1
  • Célibataire, veuf(ve) ou divorcé(e)

- vivant seule(e) et ayant élevé un ou plusieurs enfants;

- ou titulaire d'une carte d'invalidité;

- ou titulaire d'une pension d'invalidité ou d'accident du travail d'au moins 40%

- ou ayant perdu un enfant d'au moins 16 ans ou à la suite de faits de guerre

- ou âgé(e) de plus de 75 ans et titulaire de la carte du combattant ou d'une pension d'invalidité de guerre

1,5
  • Marié(e) ou partenaire d'un Pacs soumis(e) à l'imposition commune sans enfant à charge
2
  • Célibataire ou divorcé(e) ayant 1 enfant à charge

- ne vivant pas en concubinage

- vivant en concubinage

2

1,5
  • Marié(e) ou partenaire d'un Pacs soumis(e) à imposition commune ayant 1 enfant à charge. Ou veuf(ve) dont les

    2 enfants sont issus du (de la) conjoint(e) décédé(e).

2,5
  • Célibataire ou divorcé(e) ayant 2 enfants à charge

- ne vivant pas en concubinage

- vivant en concubinage

2,5

2
  • Marié(e) ou partenaire d'un Pacs soumis(e) à imposition commune ayant 2 enfants à charge. Ou veuf(ve) dont les

    2 enfants sont issus du (de la) conjoint(e) décédé(e).

3
  • Célibataire ou divorcé(e) ayant 3 enfants à charge

- ne vivant pas en concubinage

- vivant en concubinage

3,5

3
  • Marié(e) ou partenaire d'un Pacs soumis(e) à imposition commune ayant 3 enfants à charge. Ou veuf(ve) dont les

    3 enfants sont issus du (de la) conjoint(e) décédé(e).

4
  • Célibataire ou divorcé(e) ayant 4 enfants à charge

- ne vivant pas en concubinage

- vivant en concubinage

4,5

4
  • Marié(e) ou partenaire d'un Pacs soumis(e) à imposition commune ayant 4 enfants à charge. Ou veuf(ve) dont les

    4 enfants sont issus du (de la) conjoint(e) décédé(e).

5
  • Célibataire ou divorcé(e) ayant 5 enfants à charge

- ne vivant pas en concubinage

- vivant en concubinage

5,5

5

(1) La détention d'une carte d'invalidité donne droit à une demi-part supplémentaire.

(2) Le veuf ou la veuve dont les enfants ne sont pas issus du conjoint est considéré(e) comme célibataire.

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Thank you very much for going into detail.  Does that mean that the sequence of events where one of us is the sole earner through a UK pension is:

  • Take 10% from annual income

  • Divide residue in half (husband/wife)

  • For each of the two halves, take off the 5687

  • Then with the residue of each half, start subtracting the appropriate percentages from each band, the sum of which represents the total amount payable for that year.

Alan

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  • 4 weeks later...

Last year a kind tax man (yes there are some LOL) filled our forms in for us at the Centre d'Impots.   He asked us if we had anything to offset against the tax, eg. children, house improvements etc. and he put down (somewhere) that we were paying contributions to URSSAF.

 

I'm going to attempt to complete the forms on line this year, but can't seem to see where we would put down for the contributions to URSSAF.   Do you total it up and put what was paid for the entire year?

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 I cannot see how much simpler it can be explained, if you want to know how much tax you will have to pay when you declare on line there is a tax calculator and an estimate of tax to pay before you send in your return, this is not available to residents of Cornwall though[8-)]) 

Mogs You don't say if you are taxed as a business or not, as URSSAF collect all sorts of payments, from individuals and businesses.  Some payments would be allowed against income.  However, if you are talking about your CMU health care payments collected by URSSAF, there is no allowance for these against tax.  If you got that last year I would not advertise the fact, unless your tax man knows something that the rest of us do not[:)]

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Fantastic! at last someone who can explain in words we all understand. Claire the table is great. Claire could you clarify details about tax liability on UK private pensions for my parents(married). I am a little confused about the 10% . A big thanks to Sunday Driver who also seems to know what they are talking about.
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[quote user="meelypeach"]Fantastic! at last someone who can explain in words we all understand. Claire the table is great. Claire could you clarify details about tax liability on UK private pensions for my parents(married). I am a little confused about the 10% . A big thanks to Sunday Driver who also seems to know what they are talking about.[/quote]

The French tax form FAQ might help you there...

http://www.completefrance.com/cs/forums/1196188/ShowPost.aspx

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  • 4 weeks later...
"Company pensions and the UK old age state pension are entered (gross) on form 2047 ". My wife has a UK state retirement pension and I have a Teachers' Pension. Both are taxed in the UK before we receive them. If I enter the gross amount, will the French authorities know that this has been taxed, and is not what we actually receive? 
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[quote user="Quarmby"]"Company pensions and the UK old age state pension are entered (gross) on form 2047 ". My wife has a UK state retirement pension and I have a Teachers' Pension. Both are taxed in the UK before we receive them.  [/quote]

DWP have no mechanism for deducting tax at source on a UK old age state pension (State Retirement Pension). Are you saying that your wife receives another pension in the UK and her coding takes into account her State Retirement Pension?

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From FAQs

Teachers pension: Form 2047, your gross pension goes in section VII. REVENUS EXONÉRÉS PRIS EN COMPTE POUR LE CALCUL DU TAUX EFFECTIF - the form explains which figures go where.  You then transfer the total to box TI on your form 2042.  

This amount is not taxed in France but is taken into account in determining the rate of tax payable on pensions that are taxable in France -See below

UK OAP and all other pensions are taxable in France

On the 2047 section VIII  REVENUS DE SOURCE ÉTRANGÈRE SOUMIS EN FRANCE À L’IMPÔT SUR LE REVENU ET IMPOSABLES À LA CONTRIBUTION POUR LE REMBOURSEMENT DE LA DETTE SOCIALE (C.R.D.S.) - just write in 'Titulaire de formulaire E121 (or whichever E-form you have), donc je ne suis pas a la charge de l'assurance maladie' and leave the amount box blank.

 However, if your heathcare cover is under couverture maladie universelle (CMU) and you are paying your quarterly 8% health contributions, then your pension will be subject to social charges. If this is the case, then as well as entering your pension(s) in box AS/BS on form 2042, you additionally need to enter the amount of your pension in section VIII of the 2047 and transfer the total to box TL (page 4, section 8) on form 2042.

You should not be paying tax in the UK on your OAP so back to the FAQs again

 You need to notify HMRC that you are now living and being taxed abroad so they can adjust your UK tax code to zero and refund you any tax paid since the date of your arrival in France.  You just ask them for a form FD5 which you complete and hand in to your French tax office with your first tax declaration.  They will stamp it to certify you are now a French taxpayer and send it back to the UK.

 

 

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Ron any comments on the following or have I got it wrong again in your opinion? Having had a good look at the Red 2047 form it clearly says in VII Total à reporter Ligne 8 TI de la Déclaration de Revenus [Total Col. 4 -(Total Col. 5 + Total Col. 6)] Which is the gross Govt pension minus the tax paid in the UK. In other words the NET Teachers or whatever pension in TI on 2042..........................J 
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[quote user="Jackie"]Which is the gross Govt pension minus the tax paid in the UK. In other words the NET Teachers or whatever pension in TI on 2042..........................J [/quote]  Yes.that is correct, its the Net figure that goes into TI.
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