2TR or 2OP?

[Doodle]

Hello all,

In the past I've always put our miniscule interest in box 2TR however there now appears to be another option ie box 2OP only I don't quite know which to use. Come some kind person explain the difference. Thanks, Mrs KG

[pomme]

If this is interest from a UK account it should be declared on form 2047 first. If you do it online, the sum, which will be in 2TR, will be automatically carried over to form 2042.

You can read about the use of 2OP at https://www.corrigetonimpot.fr/declaration-impot-prelevement-forfaitaire-unique-pfu-case-2op/ It seems to be concerned with stopping the single flat-rate levy (PFU) taken automatically by French financial services

[Doodle]

Thanks Pomme, I've had a read of the document and I will ignore 2OP. We don't pay tax only CSG on pension & interest and as said the interest is miniscule from a few £25 premium bond wins! Mrs KG

[david]

I think its a tad naughty that they have made the "pfu" automatic with the need to opt back into the normal tax bands.  Will certainly catch a few people out next year and as often happens it will be those on the lowest incomes.  So that will be a big tick in the 2OP box from me!

KG the box for your interest on 2047 this year is 260 "Interets et autre produits a revenu fix

[suein56]

Thanks for that David .. our form arrived yesterday but I haven't looked at it yet .. so, thanks to you, forewarned is forearmed.

[david]

Here in english if that helps anyone= https://www.french-property.com/guides/france/finance-taxation/taxation/investment-income

Bottom line is most peeps in tax band 1 & 2 are better off opting for normal tax rather than the "flat rate" so Box 2OP

[Doodle]

Thanks David for the english translation. So box 2OP for me.

[nomoss]

Thanks, Pomme, for the tip, and David for linking to the translation.

My return is now corrected - interest in the right box and the sneaky box 2OP ticked.

EDIT: I believe I mentioned this elsewhere, but I also ticked the new boxes 8SH and 8SI tucked away in section 8 of  form 2042 C, indicating that we are not under a French social security scheme, but also still made a note to that effect in the "Mention Expresse" section on page 11 of the complementary information section of form 2042.

[fittersmate]

We have been sent Form 2042K which does not appear to have the new boxes 8SH and 8SI. Does anyone know what difference there is (apart from the above missing boxes) between Form 2042C and 2042K. I will add the narrative about not being under the French Social Security system in the notes instead.

[Laurier]

Thanks David for the tip and translation. I wouldn't have picked up on the 2OP and it applies to us also.

I also looked on 2042K for the8SH and8SI and as I couldn't find them, decided just to fill in 2042K as normal with the bit about not being 'a la charge' to the French social security system

Am always grateful to read other people's queries and tips for filling in the form.

[Laurier]

I've just had another look at the forms.

2047K says to report in 2TR on 2042K which (as David says) is still the default.

Do we still have to put the amount over into 2TR but tick 2OP as well, or do we leave 2TR blank and just tick 2OP?

[suein56]

Laurier wrote : Do we still have to put the amount over into 2TR but tick 2OP as well ..

It seems so .. if you are ordinarily accustomed to paying French tax at 14% or less, then you need to tick 20P.

Though I am still at a loss to understand why some people receive tax form 2042K and others 2042C.

[Laurier]

Thanks for that, Sue.

[Doodle]

Hi Sue,

Some years back we received both of these forms and filled them both in thinking if we've been sent them then we must be expected to fill them in (yes, we were a bit green back then!). Imagine our horror when the tax bill arrived for an extortionate amount. Off we went to the tax office only for the 2042C to be ripped in half and thrown in the bin. We were told it was only for extra income such as if we were MEs or receiving income from a gite business - phew what a relief that was! Although we had to pay up then wait for the cheque of reimbursement to arrive a few weeks later. Mrs KG

[nomoss]

[quote user="Mrs KG"]Hi Sue,

Some years back we received both of these forms and filled them both in thinking if we've been sent them then we must be expected to fill them in (yes, we were a bit green back then!). Imagine our horror when the tax bill arrived for an extortionate amount. Off we went to the tax office only for the 2042C to be ripped in half and thrown in the bin. We were told it was only for extra income such as if we were MEs or receiving income from a gite business - phew what a relief that was! Although we had to pay up then wait for the cheque of reimbursement to arrive a few weeks later. Mrs KG[/quote]

I think you will find that the 2042 C now has other functions besides those you mention.

Besides providing a means of declaring that one's S Sec regime is not French, as already mentioned, it is necessary for declaring unusual income, such as pensions paid as a lump sum, where one can opt for only 25% of the amount received to be added to one's taxable income for the year.

The tax arising from the reduced sum is multiplied by 4, but only the reduced amount is used in calculating the RFR for the year, so that allowances for e.g. Taxe d'Habitation are less likely to be affected.

[Kong]

Somewhat confusing. We get form 2042 c pro rather than 2042C.It's entitled Professions non salaried. We have always had this even before registering as a professional ME. Don't quite know why...

[BritinBretagne]

When you do your tax return online you choose the forms that you need.

[Kong]

Not exactly. You get a list of items you need to address which you tick. There is no mention of the actual form number (unless it has changed since last year?).

[kizpip]

Just came across this thread and interested to see the recommendation that lower income households should consider opting for box 2OP. We haven't paid tax in previous years because our income comes under the threshold but, of course, there's no escaping social contributions. Would it make any difference if we use box 2TR or 2OP, assuming we would again come under the tax threshold? We have Carte Vitales, not S1s.

[david]

Hi,

If you have investment income (interest,dividends or sale shares) and you are in tax band 1 or 2 (less than 27,519 per part) ticking Box 2OP puts you back in tax bands in most cases zero tax instead of flat tax @ 12.8%.  Its not 2TR or 2OP they are different you may need one other or both.

[suein56]

The two boxes are not the same at all .. 2TR is for declaring your interest from whatever accounts and 2OP is for opting in to pay tax as you did before .. and therefore not have 12.8% tax and 17.2% contributions sociales obligatorily taken from your income.

Edit : Your win this time David ☺

[kizpip]

OK, getting clearer, thanks. As our low income means we won't pay tax, I'm still unsure whether I should tick 2OP or not bother. From what I've read contributions sociales are payable either way.

[david]

If you have interest, dividends or profits from sales of shares you will pay a flat tax on them if you dont opt back in to the tax bands by ticking 2OP.

[kizpip]

Thanks for the quick reply. 2op has got a tick from me too.