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Social Contributions on UK Invalidity benefit?


Hereford

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We have a friend who is on long term invalidity benefit, and therefore has an E121. She has Parkinsons disease so the benefit will be long term. She is well under 60.

She has been charged Social Contributions in France on the amount of this benefit.  We do not think this is correct.

Can someone advise please from personal experience?  If she should not pay, we wonder whether she put the amount in the wrong box on the tax return.  Can someone advise on correct box please?  If she goes to the tax office (again!) to explain: what is the French term for "invalidity benefit" ?

many thanks,

Mrs. H

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UK invalidity benefit is taxable in France as a 'pension d'invalidité' and should be entered in box AS.  As your friend holds an E121, and is therefore not 'a la charge' of the French state healthcare system, then the benefit amount should not be additionally entered in box TL (which is the box which generates the CRDS charge on non-exempt foreign income).

The rules for the treatment of contributions sociales on foreign earned income and pensions are set out in tax guidance note 2041GG.

 

 

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