Tax on Gite Lettings

[edyth]

I understand that you have to declare your actual takings on your tax return. I got the following information from a financial/legal web site.

 "If you pay under the BIC 'micro entreprise' regime then there would be an automatic deduction representing costs applied to the income of 72%. This means that the taxable amount will be 28% of the income. Note that under this regime, you do not deduct the actual costs as these are accounted for in the aforementioned 72% figure."

I have just started to let our village house again this year after we moved into our permanent house here. We used to let it when we still lived in the UK but lived in it while we looked around for a house with a garden for our retirement.

The bookings have been very poor, though my family and friends used it quite a lot, so we have in fact made no profit. The income has just about paid the local taxes, electricity, water etc. with nothing over to pay for other things like new bedding.

If I declare my takings and not my profit I will be paying tax on income I have not received. It doesn't seem worth it - maybe I will sell it after all.

[aj_dr]

Have a look at my last posting on Contribution Sociale......we have had a shock this year. We have not been charged Tax but the CS contributions this year were 11% of the  gross rental income!!!! Previous years there's been no tax or CS charges, so I'm now querying if you declare income Gross or Net.

aj

[Clair]

[quote]the CS contributions this year were 11% of the  gross rental income[/quote]

I am very surprised by that statement.

I declared the gross rental income in box C00 of form 2042C.

I queried the taxable amount which was described to me as 28% of gross. So 72% of the gross declared is automatically deducted as expenses.

The balance (28%) is taxed at 11% , which is made up of 8.5% under CSG, 0.5% under CRDS and 2.3% under PS & CS.

My calculations matched exactly the demand received this week.

[aj_dr]

Clair, have sent you a PM

aj