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Impots Payable Sky High

Posted by jandave - Created: 3 years ago
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10 replies (Showing replies: 1 to 10)

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Posted by tigre-979768 - 3 years ago

Buster, I think you mean when saying that you have to mention on your tax form that  you have an S1 and are excempt from social charges, this is for pension income. If you are of retirement age, hold an S1 then no social charges are applied on your pension income.

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Posted by tigre-979768 - 3 years ago

Buster, what you say is wrong. Put in to Google 'social charges in france on UK property rental income'. You should find an article on the Frenchentree site written by Blevin Franks, this explains how this income should be dealt with by the french tax authorities since the revised double tax treaty between France and the UK came in to force in 2010. This article clearly states that no social charges are applied to this income, this will be regardless of S1/carte vitale status. It also states that most of the tax offices in France now understand this, but it has not filtered through to all offices, hence some people still being wrongly charged. 

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Posted by buster-784461 - 3 years ago

Unless the rules have changed, you pay the 'social charges' on unearned income - uk rental - but are exempt if you get your carte vital via the form S 1.

You have to mention this on the tax form for it to work!

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Posted by tigre-979768 - 3 years ago

Geegee42, it has nothing to do with N1 payments. If its not taxed in France then the French can't levy social charges on this imcome. It obviously has to be declared n France, but as others have said you recieve a credit on your tax bill over here.

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Posted by geegee42 - 3 years ago

Sorry I didn't realise you paid NI in the UK on rental income I thought it was just tax that you paid ,the CSG in France is not income tax its a social contribution and I thought it was levied on all unearned income from any country if you are a French resident,the euro court ruling stated that the state could not charge non residents CSG if they paid social charges in their country of residence.

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Posted by Philealing - 3 years ago

Incorrect geegee42. Social charges are not levied on UK rental income as all taxes due are levied in the country where the property is located -although this is a mistake tax offices have made in the past. Happened to me two years ago. A trip to the tax office sorted it.

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Posted by Huey-407259 - 3 years ago

Just received my Tax bill, and as usual no problem whatsoever!!!

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Posted by geegee42 - 3 years ago

As I understand it ,you pay social charges on unearned income from the UK if you are resident here,I would assume that the social charges you are being asked for is 15% of the income from your UK rental property which would be correct,as far as the tax element goes it might be related to your increased income due to the exchange rate ,if your income has increased by 3000€ and the tax people want 3000€ then looks like you are no worse or better off,my experience through life has always been every time you get a bit of extra cash someone wants to take it off you.

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Posted by Fitter - 3 years ago

strong>My earlier Post on the subject

Emu-you have a touching faith in the ability of tax offices to get their own system right.

In our experience over 5 years they almost never get it right - we always have to go into the impots and usually ask to see the chief inspector with our tax bill and a copy of our return.

He re-calculates it and usually says "There has been a mistake" What? On our return? "No-there has been a mistake" and then issues a refund-he never apologises however.

And we are not talking peanuts here-usually close to a thousand euros more tax than is due.

And their mistake is usually that they add a certain pension in twice.

Update- Full marks for consistency - got the tax bill this morning and they've done it again! - added in a pension twice-another trip down to the tax office.

 

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Posted by tigre-979768 - 3 years ago

I don't live here full time, but surley the tax office indicate on your tax return what the social charge is for? If you calculate 15% of your savings interest and dividend total and it comes to about 250e I quess it's about right, but I would certainly check this.