French Finance

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   11/03/2008, 17:59
Alan D is not online. Last active: 06/04/2008 11:56:56 Alan D

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Being taxed in France
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I have just received my English tax code for April 2008 onwards so I know how much I will have left each month of my pension, which is at present my sole source of income.  I have also been told that my pension can be taxed in France so I have to find out how much tax I would pay under the French system, do a like-for-like calculation and decide whether it will be advantageous to be taxed as a French resident.  The inevitable questions are:

  • How can I find out how much I would be taxed in France-ie how to do the sums.
  • How do I make the request to be taxed as a French resident.
  • Are there any hidden problems-if I find I will be better off under the French tax system it will sound too good to be true!

Alan D


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   11/03/2008, 18:03
cooperlola is not online. Last active: 03/07/2008 10:06:41 cooperlola



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Re: Being taxed in France
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Firstly, you have no choice in the matter.  If you live in France, you are taxed in France, unless your pension is a public sector one (ie Civil Service, Police etc) in which case you are taxed in the UK.  No matter what, if you live here, you must complete a French tax return (the forms will be published shortly for your '07 income and must be in around May) even if you pay tax in the UK as social charges and income tax have to be calculated on any other bits of income (such as interest from UK accounts etc, however small).  It's not a question of which is the most advantageous, but which you are legally bound to do.

However, one is normally better off paying income tax here anyway.


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   12/03/2008, 18:15
Alan D is not online. Last active: 06/04/2008 11:56:56 Alan D

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Re: Being taxed in France
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Thanks. I presume I have to inform the tax office (or pensions?) that I will be paying tax in France.  Should I then obtain up to date info from them to show to the French tax office to ensure I'm not taxed twice?  What would be the changeover date, is it the day that I officially take up residence in France?

Alan


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   12/03/2008, 18:25
cooperlola is not online. Last active: 03/07/2008 10:06:41 cooperlola



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Re: Being taxed in France
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Yes, you begin paying tax in France from the date of arrival.  However, you pay in arrears here so very shortly the tax forms for declarations in France for 2007 will be published (you'll find this pops up on the forum when it happens, so keep an eye out).  You then nip along to your local tax office here and ask for the relevant forms (there are basically 3 - the standard form everybody fills in, one for foreign income, and another - which you complete once - listing any bank accounts held outside France).  You also have to get a form FD5 - which is the form which allerts the UK authorities that you are now a French resident.

You submit the lot to your French tax office some time in May (again, this date is always mentioned somewhere on here once it's been published).  Your local tax office works out your liability here and you'll get a bill which has to be paid in the early autumn.  They also stamp the FD5 to confirm you're in the French system and then it goes to the UK tax office via Paris (with me so far?)  Eventually - and this takes a while - you'll get a rebate of all the tax you paid in the UK since you moved.

Those are the bare bones, at least!

EDIT : Forgot, you need to fill in a P85 too:

http://www.hmrc.gov.uk/cnr/p85.pdf

I'm currently looking up the references for the other forms.... Watch this space.

EDIT No. 2   FD5

http://www.hmrc.gov.uk/cnr/france-individual.pdf

Edit No. 3

The two tax forms you need are 2042 and 2047 - you can download "blanks" HERE but do wait until the '07 ones come up as the old ones are still showing at the mo'.

Edit No. 4 (hopefully the last).  The form for declaring foreign bank accounts is HERE

Phew!  I think that's about it but Sunday Driver and co will put me right if not.  Basically,  it's a bit stressful the first time but is a doddle once you've got it all sussed.  The painful bit is waiting for HMG's tax office to get your rebate sorted...


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   14/03/2008, 16:39
Weegie is not online. Last active: 03/07/2008 21:15:24 Weegie

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Smile [:)] Re: Being taxed in France
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.Just to add, should you have any UK Bank accounts you should also complete form 3916 (one for each account).  Edit:  Sorry Cooperlola, just saw your link.

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   18/03/2008, 12:52
knee gel is not online. Last active: 28/06/2008 12:35:47 knee gel

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Whistles [Www] Re: Being taxed in France
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Hi Weegie, help ! the form 3916 you refer to for UK bank accounts, where can I find it? I have looked through the forms on the hmrc site but can't seem to find it.

ta in advance....chris


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   18/03/2008, 13:24
gosub is not online. Last active: 03/07/2008 11:32:11 gosub



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Re: Being taxed in France
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 knee gel wrote:
Hi Weegie, help ! the form 3916 you refer to for UK bank accounts, where can I find it? I have looked through the forms on the hmrc site but can't seem to find it. ta in advance....chris


You should be looking on the French gov. web site for the forms, use cooperlola's link as above.

Les



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   18/03/2008, 15:01
knee gel is not online. Last active: 28/06/2008 12:35:47 knee gel

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Smile [:)] Re: Being taxed in France
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Oops sorry, when you bring up the site the title bar states 3716 but the form does state 3916 - didn't go that far as I panicked at the first stage of download !

thanks, Chris
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   05/05/2008, 14:35
Fleur is not online. Last active: 02/04/2008 14:56:30 Fleur



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Woot! [:-))] Re: Being taxed in France
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cooperlola said "The two tax forms you need are 2042 and 2047 - you can download "blanks" HERE but do wait until the '07 ones come up as the old ones are still showing at the mo'."

 

I can't see form 2047 to download .  At least in no way similar to last years form.

Husband now hitting head against wall.

 

Edited to add that I finally got through to someone and a form will be sent in the post. 

Edited it yet again to say I've found it!!!!!!  See http://www.impots.gouv.fr/portal/deploiement/p1/fichedescriptiveformulaire_4489/fichedescriptiveformulaire_4489.pdf

 


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   05/05/2008, 15:39
sweet 17 is not online. Last active: 23/06/2008 09:14:01 sweet 17

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Re: Being taxed in France
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 knee gel wrote:
Oops sorry, when you bring up the site the title bar states 3716 but the form does state 3916 - didn't go that far as I panicked at the first stage of download ! thanks, Chris

Knee Gel

I've just downloaded No 3916, Declaration par un Resident d'un Compte Ouvert hors de France (sorry haven't got the accents programme on at the moment).  Is that the one you mean?


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