Ray51

It has been suggested that , soon , a resident could earn up to Euro 11.763 p.a. totally tax free , and only above that the tax would then start , next band at 5,5% etc...
Has onyone heard more about this ?
How would it affect the social security contributions i.e. would those still be payable on all income received , or only on the income above tax-free band ?

treskillard

there's something about this here - certainly quotes the right amount as exonerated. won't affect the self employed however I imagine as tax is not the issue there.

Andrea50

Gosh if only that really does happen, it will be great for me and Pete as neither of us will ever get to that per year - I won't even pay tax on the current rate of 5,800 euros, and still won't even when I get my pension.

Here's hoping .............

Andrea50

One thing I am confused about regarding tax is that if one is a non tax-payer in England, ie one does not earn enough to meet the current base level of about £6,300 ish, as that 6,300 is above the current French level of 5,700 or so, does one pay French tax on the bit of one's income from England that goes over the French base level?

I know we will probably be better booking up a one hour session with an Accountant when we are over there and getting him/her to sort it once and for all for our peace of mind, but what happens over there can depend on what one does HERE before one leaves.

I will never have income of over any base level at all as I am on Incapacity Benefit, but Pete will have a small income from a rented flat here in England. I have read that even PACS couples are taxed separately in France, so there is a chance he could just exceed the low French base level with his English income. We think it more sensible for him to pay the minimal amount of tax here on his rental income as a UK tax payer, then claim it back later if he does not exceed the lowest English level.

Still confused though about whether he would then pay French tax on that income as it would technically become non-taxable under UK jurisdiction.

Confusing or what!

Ray51

Thanxxxx for your contribution , treskillard !
Not sure if I should rather p.m. you about this , but : here it goes , maybe someone else can also benefit from this ?
Based on last year's personal tax-exempt income ( i.e. Euro 17.625 for "2 parts" ) , are the social contibutions still to be paid , even on this tax-exempt amount ;
if "YES" , at what rate , pray ( 9% , 11,5% ? ) ;
would you know ? Thanks again !
R.

treskillard

I'll let others check this for you Ray - I don't know the system well enough.

cupoftea

Hi Andrea

Income from property in the UK is one of the situations when you do not have a choice about where the tax is paid - it has to be paid in the UK (like, for example, government pensions). If the amount of income is below the personal allowance, then nothing is paid, but it still remains taxable in the UK - and if you discuss it with the relevant authorities you may also be exempted from self assessment forms every year.

The UK income is then declared on the french tax form as income already taxed in the UK, so it is not included in the calculation for tax purposes or for social contributions.

Your situation does not seem complicated enough to need an accountant, there is plenty of good advice on various forums, and the french tax services, both online and in person, are very helpful.

Hope this helps.

Andrea50

Cupoftea, thanks so much - this has been bugging me now for over a month, as every website I have read seems to indicate we either would or we wouldn't and I just lost the will to live trying to unravel it! That's put my mind at rest.

Happy weekend to all.