Avis d'impot 2019

[slowfox05]

Have just got our Avis d'Impot and am pleasantly surprised to find we have received a payment of €286.

We have never paid a centime of French income tax or social charges as our government pensions are taxed in the UK. The "Montant de votre impot" figure has been zero for the last 10 years.

We're not complaining but is there a simple explanation for this?

Thanks.

[NormanH]

It's not quite the same thing, but as from last year I started to get back the rebate for the person who helps me at home. In the past it could take you down to zero, but you didn't actually get any money back.

Perhaps they are doing the same thing when they do the calculation of how much tax you would have paid if it had all been paid in France.

This always works out less than you have actually paid  in the UK, and perhaps that is now being given as a rebate, not just taking you down to zero

This it's only a suggestion I have no concrete knowledge

[minnie]

Like you slowfox we generally don't need to pay tax in France as I, too, was a Government employee and it is taken at source in UK. Pleasantly surprised to find that our Avis for this year shows a refund of 265 Euros. We don't have home helps or any refund due for work carried out so I have no idea what the explanation is for this. Quite happy to accept it though.

[mint]

Nothing to do with those social charges, would it?

[Judith-aka-Judith]

I believe this is to do with the changes in how tax is collected this year.  For those on salaries, and others, one tax year has been "missed" though I don't understand it all completely.  On the French tax form you can ask for a rebate on donations etc to charities, and other rebates you might have received such as employing someone, and they are giving it as a lump sum or rebate rather (in more than one part actually, as we had one of these in the early part of the year) and these will now be appearing again as they finalise tax due since they have received the forms.  I haven't been online yet, but I expect to see something, give or take depending on what I put on the form for donations this year.

Not well explained, as I am not an accountant, but that's what I think it is all about.  Plenty of info on the French tax web site.

[minnie]

We have paid no one for anything which would be reclaimable, nor declared payments made to charities. No idea why it has been refunded and am not inclined to lose any sleep over it as it is such a small amount.

[slowfox05]

We are like you Minnie, and haven't employed anyone or had any work done on the house.  We've never paid social charges either as we receive the UK state pension.

The mystery deepens; makes up for losing the heating allowance somewhat!

[Hereford]

The CESU  credit for "staff" (!) is refunded if it takes one down past zero. Happened last year to an oldie we know - who pays no tax - and to us too this year. Payment straight into bank account. This year a payment in advance was made in January on the assumption tax situation the same as previous year.

[Judith-aka-Judith]

Thanks Hereford, I knew someone on here would explain it better than I did!

[NormanH]

Having looked at my 'Avis' which I didn't have available for my first post it looks as if I was right and they are now paying the full 'credit''on income  already taxed in the UK whereas before they cut it off at Zero so there was no money actually paid back..

[Gardian]

Translation Norman ?

[Spider]

I'm in a similar situation, pay tax in UK on CS pension but none here. Where does it say on the AVIS that you get a refund? Not got mine yet but looked on the Impots site.

[NormanH]

They take the gross amount that you have paid tax on in the UK and calculate how much tax you would have paid if it had been paid in France.

As French income tax is lower than British you have normally paid more tax than you would have paid here.

The difference is then given back to you as a credit.

In the past you didn't get it all back, they gave just enough so that you paid 0 tax.

Now it seems that they give it all back so you can actually have a credit.

It is worked out in detail on my Avis.

There is 1 part way I can see the credit I have against my home help, and another part where I see the credit against the tax I have paid in the UK.

They are then added together to give me a total refund

[Spider]

Thanks Norman, that has clarified the matter for me.

[EmilyA]

Would be nice if it could be backdated. It might make up for the plunging pound. ?

Still at least we will pay less tax next year.

[NormanH]

I emphasise that this is my own experience but it may not be generally true.

I was just looking for an explanation of the OP

[YCCMB]

@Emily A. If the pound strengthens, assume you'd be delighted to pay a supplement?

[EmilyA]

Not sure I understand that YCCMB? We pay French tax on our income every year and obviously the amount goes up and down depending on the strength of the pound. Only my occupational pension is taxed in the UK.

[richard51]

My account/tax (etc) consultant suggests that Norm is probably spot on (though she/he(?) is not specifically expert on french taxation).

Having said that I'm sure that if you are earning in the UK and living in france then any rise in the pound would be very beneficial and the increase in income would very much be overriding the difference in taxation.

Corbyn is definitely your man.

.

[YCCMB]

@EmilyA. If you would like to be compensated for an adverse exchange rate, then the flip side is that there should be a claw back if things go the other way?

[richard51]

Most people look at the whole picture.

I'd also want a fair exchange rate.

[woolybanana]

What is fair?

[richard51]

I may break your rules now.

"fair" in my book taxwise is paying what is asked by the state.

"Evasion" and "avoidance" should not be differentiated.

Ask Mr Rees-Mogg.

[richard51]

fair re exchange rate is when the UK can pull its weight (whatever it is) in Europe.

UK aint a world power - ask Mr Trump. Its pi!!ed off every other world power.

[EmilyA]

YCCMB I said nothing about compensation for an adverse exchange rate. That would be ridiculous. I was talking about the anomaly of the way the tax has traditionally been calculated in France, on an occupational pension taxed at source in the UK.

The subject of this thread, in fact.