pension paid direct to French bank account

[patchworks101]

    Hi

Has anyone managed to get their pension (mine's from the council) paid direct from the pension office into their French bank account rather than into a UK account and then having to transfer via xe.com etc? If so how do you know what rate to put on your tax form? Finally, my council only sends out a 'pay advice' quarterly - May, August, November and February so how can I tell the French tax authorities what my pension was (UK tax paid) for the calendar year rather than the UK fiscal year.

Sorry it's so long but we are planning to move there permanently in a couple of months and am trying to get things sorted whilst I have confirmed access to the internet for advice from your good selves.

Bob B

[Sunday Driver]

Give your pension provider your French bank details.  They'll need the long IBAN (International Bank Account Number) to set up future transfers.

There is a standard exchange rate as at 31 December 2005 that the tax office use. It's already been posted on this forum section.

In my case, I prepared a spreadsheet schedule listing each monthly pension receipt (grossed up in my case) and worked out the euro equivalent using the spot exchange rate which appeared on my French bank's transfer advice each month and took this along to my local tax office.  The tax man understood what I'd done and he was happy with the method (Ssh, the calculation was marginally in my favour but don't tell him....)

 

[Ron Avery]

Number one you will not have to pay tax until the year  after you move to France, so if you move in 2006 your first tax retun will be in May 2007 for the period that you have lived in France in 2006.

Q If so how do you know what rate to put on your tax form? 

If your pension is paid into a UK bank account and then transferred to France you can declare the amount you receive in France in euros or when you need to, ask on here or ask the French tax office for the exchange rate to be used.

Q Finally, my council only sends out a 'pay advice' quarterly - May, August, November and February so how can I tell the French tax authorities what my pension was (UK tax paid) for the calendar year rather than the UK fiscal year.

Usually these type of pay slips are when the pension is stable, so as you are not moving on Jan 1,  the first year will not be a problem because you will know by May 2007 what your pension was from day 1 in France to December 31.  For subsequent years you just keep the pay slips and calculate the amount received in the calendar year.

If you have savings interest that has to be declared as well and most UK financial instuitutions will give a Jan to December statement for French tax purposes. 

[patchworks101]

Thanks to both SD and Ron (looking at the forums you two must be the most prolific at helping others). I've printed your advice out for future reference as well.

Thanks again.

Bob B