Help! Paying 2004 Taxes...

[Crevette]

I have a few questions about French Taxes and was wondering if people could help me out.

i) When do you need to do the 2004 declaration by and when do you need to pay?

ii) How does it work with any pension scheme you have in the UK?

iii) If you are paid in the UK - what exchange rate do you use for converting your income to Euro's (and do you do this for each month or for the whole year).

iv) Any advice on how it's best to pay (cheque, online,etc.). Can UK credit cards/debit cards be used? and how how often to pay (monthly, two/three times - anyone know the exact dates as in point i)) 

ALL ADVICE WELCOME!

Thanks,

-Rob-

[makeiteasy]

Dear Rob,

 

the tax declaration for 2004 should be done at the end of february 2005, then if it's the 1st time you do it, you'll pay the total amount in September/october 2005.The year after the taxes would take in reference your income for 2004 and if you require it you could pay monthly, but if you don't you should in 3 time, one in february, one in may/june and the last in september/october.

As soon as you have an income from UK or anywhere else than from Franceyou should add to the "normal form" another one special for foreign income which will avoid that if you've already paid taxes on it to pay it twice, but don't worry if you go to the tax office they know which one it is. 

I don't remember if you have to convert it or just put the amount in £ and they will convert it.

The main way to pay it is a direct debit on your french account, but if you don't have one you could pay in cash directly to the tax office.

I hope i've answered all your question.

Cheers.

Céline MONIER "makeiteasyconsulting" 

[Ron Avery]

I was dreading the Tax thing but got a very pleasant surprise due to the friendly reception and helpfulness of the tax people and, because France has a married persons allowance that took our free pay up much higher than in the UK.  We ended up paying far less tax than we would have done in the UK and I got all my UK tax back from Bootle as well

As far as the conversion rate is concerned, there are two ways to do it, take all your French bank statements showing the income in euros so it is accurate or you take proof of the income in £ if that is all you have.  Our tax office seemed glad  just to get the return and were not bothered about a precise €/£  exchange rate, they suggested using the current rate which was very much to our advantage.

[Crevette]

Thanks for the advice so far.

The big worry I have is that in my first year here, my taxes were ENORMOUS in france as the french tax office ruled that the hotel I was staying in, and all food allowances (both paid for by the company),  should by charged as "salary" and not as expences. This meant I recieved a tax bill of 22,000 Euro's! (a very good proportion of my present salary). Luckilly the company sorted this out for me and "equivalied" the taxes with the UK so that it was like I was being taxed in the UK.

Now I am left on my own, and if I understand it well, the tax office will use LAST years tax payment to estimate this years!

I am not married yet (getting married in August!) but have been living with my partner for 8 years. I know in france you can get tax reductions similar to being married if you sign something called a PACS ("Pacte Civil de Solidarité (PaCS)" but only three years after signing it! So if I had signed it when living with my partner in the UK three years ago (which is imposible as someone needs to be living in france!) then I could get a good tax deduction - doesn't seem fair somehow!

Looks like now is a good time to see the tax office with the exchange rate being so bad! I will organise a meeting with them (do you know if they can be contacted by email?) and send over my pay-slips.

Many thanks,

-Rob-

[Tourangelle]

You don't need to be living in France to sign the PACS.  But look on the bright side, when you do get married you get a really big tax break the year after!!

[Crevette]

>You don't need to be living in France to sign the PACS.

Perhaps it is outdated but I read ;

"French nationality is not required by both parties signing a pact but a foreigner must be legally resident in France."

http://riviera.angloinfo.com/information/1/pacs.asp

I'm looking forward to the tax break when I am married (as my partner does not earn much - she has a PGCE teaching english qalification - which is not recognised in france - it will make a big difference)

Regards,

-Rob-

 

[Teamedup]

If you paid a lot last year, the initial bill for this year will be based on last year's. What you need to do is go to the tax office as soon as possible with everything that you need to fill in a tax return and sort this out.

We fill in the return in late Feb/March time and the bill comes in late August. However, for those of us with prelevements, we pay our standing order payments based on the previous year's bill. If we know that these payments will be excessive or fall short, we are supposed to contact the tax office and change the monthly payments.

For those who don't make monthly payments, then there are three installments, the first one must be made in February I think. Penalties are charged if these payments aren't in on time and these payments are also based on the previous year's tax bill. So as I say, go in and see them, they are usually pretty good and I believe that they will sort this out.