Is this correct?

[ali-cat]

After reading through the posts here I'm beginning to feel that I might be able to complete our first tax return - just a few remaining uncertainties.

I'll be filling in a joint declaration for me and Mrs (both in our 40's).  Our income consists of :  both receiving UK Govt medical retirement pensions taxed at source in the UK;  both in receipt of UK incapacity benefit;  interest on savings from two offshore accounts (opted for tax not to be deducted or witheld).

I've downloaded forms 2047 and 2042 (also believe we need a 3916 for declaring any bank accounts?).

As far as I can determine the Govt pension totals are entered at section 1 (Pensions, retraites etc) on the 2047 and carried over to box TI on the 2042.  Interest on savings is entered in box TS of the 2047 and carried over to box TS on the 2042.

What I can't find is an appropriate place for the incapacity benefit income.  This is classed by UK revenue as taxable income but isn't taxed as such. Instead the amount of benefit received reduces our UK tax free allowances meaning we pay more tax on our govt pensions.  Perhaps incapacity benefit income should be added to the pension income and the total tax paid entered.  However,  if there is a separate section for incapacity benefit, how do I show that tax is paid if tax isn't actually deducted from this directly (if you see what I mean).  Also we have both been issued with E121's.  Does this have any affect on social charges?

Sorry for the length of post and additional questions but I doubt if I could have gotten this far without the forum and don't have much faith in being able to adequately discuss this with the local impots.

Many thanks

Mark

 

 

 

 

[Ron Avery]

You are ok with what you have done so far Mark  but not being in receipt of it I don't know if IB is taxable or where it goes on the 2047 and 2042, I'm sure Les L, SD or Benjamin will know though.

[Benjamin]

Incapacity Benefit goes with other pensions in either AS or BS in Section 1 on form 2042.[8-)]

[Bluebells]

Ron A, I am sure that as he is in receipt of early ill health retirement government pensions taxed in the UK then they should be entered showing tax paid and totals in box VII on the 2047 and then transferred to TI on 2042 and not box 1 of the 2047, as this is for old age pension, or am I wrong?

[ali-cat]

[quote user="Bluebells"]Ron A, I am sure that as he is in receipt of early ill health retirement government pensions taxed in the UK then they should be entered showing tax paid and totals in box VII on the 2047 and then transferred to TI on 2042 and not box 1 of the 2047, as this is for old age pension, or am I wrong?[/quote]

Ah Ha ! Thought it was going too smoothly[:)]

 

[Ron Avery]

No I think you are correct, I was completely forgetting these are government pensions taxed in the UK and not declared in box 1,  a thousand apologies Mrk for the confusion, serves me right for  trying to answer going out of the door!!

 In addition to UK OAPs, of course  private pensions not taxed in the UK go into box 1 on the 2047.

[Ron Avery]

.............early ill health retirement government pensions taxed in the UK

then they should be entered showing tax paid and totals in box VII on

the 2047 and then transferred to TI on 2042 and not box 1 of the 2047,

as this is for old age pension, or am I wrong?

No I think you are correct, Blubell there must be more civil servants in France than in Whitehall[:D]

Apologies Mrk for the confusion, serves me right for  trying to answer going out of the door!!

By the way for others, in addition to UK OAPs, of course  private pensions, not taxed in the UK do go into box 1 on the 2047.

[ali-cat]

Tax forms accepted with the minimum of fuss by the authorities at St Jean d'Angely. Thanks to all who replied to this and the E121 thread[:D]