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B&B and tax avoidance


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Hi there, I would like to offer a room for B&B or a long let,mainly for company and a little money. The problem is that if I declare this on my tax return it will affect mu husbands tax whi is working in Japan. I have written to the tax inspector here who informs me that this is the case. I am unsure what this means. We apparently will be taxed as a couple. At present I daren't earn anything. Does anyone have experience of a similar situation? Japan has a double tax treaty like the U K. Could I perhaps advertise quietly in post offices in the U K?! I would be loathe to do this but what can I do apart from nothing. Am grateful for any advice.
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We apparently will be taxed as a couple. At present I daren't earn anything. Does anyone have experience of a similar situation? Japan has a double tax treaty like the U K.

..................................if this is the case and you are doing part time B&B in one room only, you may find that the tax is very low.

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Hi new to area,

you clearly have not realised but you are already being taxed as a couple - that's how it works in France.  Families are taxed as units.  So if you open your B&B legit.  based on the small profit you will make there will be an even smaller amount of tax to pay.

 

 

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Funny thing here. I noticed that the original poster has not been back, possibly understandably, but has 8 posts noted, so I searched on their username and found nothing. Now Miki, Widnes Bob and myself all come up when searched for, so where has 'newtoarea' gone?

For what it is worth I think Miki was right in his original posting - how crass is it to ask people who ARE working legally and paying taxes how to get away without? Not to mention people like the rest of us who are nothing to do with B&B but who just pay taxes - for every person out there who avoids tax the rest of us pay more - and we are supposed to believe that is clever? I don't think so!

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Thanks to Dick & John for seeing the post for what it stood for.

I don't want to start it up again, as I see the posts have been

deleted, OK on that score but why did the chap who attacked my views,

not simply give an opinion to the original question ? What is extremely

annoying, it came from a chap who just a  while ago on the thread Irritating posts

stated just how much he detested people who just engaged in childish to

and fro name calling..........they provide no usefulness....tiresome to

wade through........usually completely off topic..... and there

must be more appropriate places for personal communications etc etc

Yes, fair enough, I am doing the same here but then I am not one who

posted those remarks am I........ glasshouses, in and people spring to

mind.

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I don't think that newtoarea knows what he/she is talking about.  Tax in Japan is individual not couple based if both are earning money.  It also depends on how long they have lived in Japan and residence status.  On the French side - who knows?  I have had a load of differing advice so I am waiting until I get there to sort things out.

Coral  -  nearly in ariege

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Well hello again to all and thanks for your replies whilst I realised I was  being provocative I did not wish to cause such animosity.  i do not really want to avoid tax I am just worried that if they get their hands on me all hell will break loose.I am afarid of getting un a mess otherwise I would simply go down to the public tresor and ask them.  What I am really saying is that if I  have an occasional paying visitor will I be so penalised as to make it not worth it. The french tax authority have informed me that we will be taxed as a couple if I work here. As I have said we already pay our taxes in Japan and I would not want to pay more in France. This seems fairly reasonable to me. I am not talking about big time running a business. I am confused by the replies Sorry to have upset some people and enjoyed being called crass. Can anybody really give me any advice? Is anybody in this same situation of paying tax in two countries? Thanks

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The answer is very simple. If you earn money you are expected to pay tax and social charges on it. If it is a very small amount, then there is not likely to be any tax payable, but as you have found out, in France you are taxed as a couple, and the couple's worldwide earnings are taken into account, so in your case you probably would have to pay. Smaller amounts are normally taxed as a 'micro bic' where a pre-determined percentage is knocked off for expenses, reducing the liability.

For a definitive answer, you should talk to a French accountant or the hotel des impots - not the tresor public, which is where you pay the bills, rather than the people who actually administer the taxes.

Lots of people pay tax in two or more countries. You are normally taxed in the country where the income arises. If there is a double taxation agreement between the two countries, you will only be taxed once on any particular sum (though it can get more complicated if overseas income takes you into a different tax band in France).

Of course it's up to you whether or not you declare the income, but we cannot be seen to condone anything illegal, and tax evasion (rather than tax avoidance) is of course illegal, regardless of the amount involved.

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