Even though Spring is officially a few weeks away, it certainly feels like it is in the air with the sunnier weather and flowers popping out. We have a large Mimosa tree in our garden which is full of bright yellow, fragrant flowers.

Although it’s ‘better late than never’, we now have a finance law and a budget as of 6th February. The income tax bands have been increased by 1.8% rather than the originally announced 2% as inflation is lower than anticipated.

The new tax bands are as follows:

A new tax; called the “contribution differentielle sur les hauts revenus” (CDHR), has been introduced, and will come into effect next year, for those who earn over €250,000 as an individual or €500,000 pa for couples. This is to guarantee a minimum tax of 20% on their income earned in 2025. Those tax payers who are subject to this tax (i.e. those whose income is largely exempt or subject to the flat tax of 12.8%) have to make an advanced payment of 95% between 1st and 15th December 2025. The exact amount of tax will be calculated in Summer 2026.

A parent, grandparent or great-grandparent can give €100,000 to a descendant without paying tax up until 31st December 2026, subject to certain conditions. The beneficiaries of this gift must use this money in the six months following the gift to buy a new property, or a property soon to be completed or for energy efficient renovation costs to an existing property. If the person does not have children, the money can be given to a niece or nephew. This is in addition to the usual gift allowances. The property purchased or renovated must become and remain their primary residence for the next five years. Since the gift would need to be declared through a notaire, it is important to ask them whether in your situation this allowance can be used.

You can give up to €1000 to charities which provide food, aid, or housing for people in need and get a tax reduction of 75%. Any amounts over this threshold are subject to a tax reduction of 66% up to 20% of the taxable income. The same allowance is granted for donations to charities that protect victims of domestic violence.

There has been much concern from small businesses about the lowering of the VAT threshold to €25,000. This has now been suspended whilst the tax authorities consult with professionals and the minister for the economy has said that for now micro entrepreneurs do not have to make any additional declarations. However the VAT thresholds have already been lowered in the 2024 finance law. In 2025 if your turnover exceeds €85,000 for sales/puchases or lettings or €37,500 for services, you have to charge VAT in 2026 or even in 2025 if you have gone over the threshold of €93,500 or €41,250 respectively.

If you have any questions on any of the matters mentioned above or would like to discuss your own financial situation please do get in touch.

In January at our annual conference in Casablanca it was nice to escape the cold, dark mornings of France and get a bit of sunshine. It was an interesting and informative conference thanks to our product providers bringing their various observations and opinions about investment markets and geopolitical events.

On 20th January, just as we were arriving at our conference, Donald Trump was sworn in again as the American president. He wasted no time getting to work with executive orders. On day two of our conference, Rathbones Asset Management presented their views on what we can expect from Trump 2.0. The phrase “Drill, baby, drill” was mentioned more than once – like his first term in office, we can expect (to the extent that Donald Trump’s decisions can be predicted) that he acts to protect American interests and American businesses with tax cuts and less regulation, which in turn is likely to be good for the US economy. This time around it looks like he has his eye on imposing tariffs on everything.

There was much talk about how well the US market had done last year. However, Rathbones also highlighted the following:

• 29% of the global stock-market (as measured by the FTSE All World index) is now in the technology sector, and of this, 19% is concentrated in just seven companies
• 65% of the FTSE World index now comprises US companies
• the top 10 holdings in the FTSE World index account for 23% of the index’s total value

So, whilst markets (and investors’ portfolios) have performed well, the dominance of the “Magnificent Seven” is a concern for some investors.

On day three of our conference, which was the second day of Donald Trump’s second term in the White House, he had already introduced executive orders and other measures, which meant that our presenters, Evelyn Partners and LGT Wealth Management, had fresh insights for us. This is likely to be an ongoing theme of Trump 2.0 – there will be lots of change, there will be lots of noise, there may be action that may need to be reversed for not complying with the law and/or the US Constitution, and there may be controversy. However, as controversial as Donald Trump is, and regardless of your personal views on his character, the consensus is that he will be good for the markets.

Prudential International told us about their funds’ positive performance in 2024, how inflation seems to be easing and how property values are showing signs of stability. In 2024 Prudential completed investments in two French forward living projects, notably Clichy Rue du 8 mars, in Paris, and Aurientis, a senior living development in Aix-en-Provence. They now have their sights set on projects on Rue de le République in Lyon, Leadenhall in London and Haymarket in Edinburgh, which are scheduled to complete by the end of 2025.

There were mixed views from our presenters on whether bonds would be a good investment in 2025. New Horizon Asset Management gave us their predictions for 2025 and showed us which of their predictions in 2024 had been accurate.

I have spoken to many people in the past about some UK pension providers requiring them to buy an annuity. Conversely, without a UK address, an annuity is generally unavailable to British expats in France. This however is not an obstacle to successful retirement planning. We work with international pension providers such as Novia Global and iPensions who provide low-cost pension solutions, with a range of investment opportunities, and the option to receive payments in Euros or Sterling. If you or someone you know would like to arrange a free, no obligation, pension review, please get in touch.

In France, there is still no finance bill, which is a cause for concern. Recent issues of Le Particulier magazine (I am a subscriber) have been rather thin. There is some financial news however that may be of interest. New PEL accounts, opened since 1st January 2025, are now paying 1.75% interest as opposed to 2.25% previously. Also, your electricity bill should reduce by around 14%, from 1st February.

If you are heading to Bordeaux, or to any of the other major towns in France, you will need to have a Crit’Air sticker in your car as of 1st January 2025.

Finally, as a reminder, please be vigilant when communicating with financial institutions. You can now look on the impots.gouv.fr website for accounts registered in your name, a worthwhile exercise to check for any that you may have forgotten about, or which may have been opened without your consent (unlikely, but worth checking). You will find this in the “other services” tab on the Impots website.

If you have any questions on any of the points made above, please do get in touch.

The year 2024 is drawing to a close. Financially it has been a rather good year in the markets with a lot of our clients’ portfolios doing much better this year than previous years. Even as you start to prepare for Christmas or wind down at the end of the year, there are still some financial points you should be aware of.

The interest rates on the Livret A and the LDDS savings accounts will reduce from 3% to 2.5% next year (probably in February). Even though the rate has dropped these accounts are still a good place to keep money needed for the short to medium term. Any amounts that you do not foresee needing or you want to get a better return from without paying tax, should be put into an assurance vie.

Christmas is a time for giving whether that is to families or charities. Although gifts to friends and family normally have to be declared, for events such as birthdays or Christmas, you can give money to your loved ones without having to declare these amounts to the tax office. This is known as a “presents d’usage”. If you wish to give money by bank transfer it is advisable to put on the transfer order the words “Présent d’usage pour Noel” so that there is no doubt about the fact that it falls under the exemption.

If you haven’t been giving to charity regularly over the year, now is the time to gift money to any worthy causes. Gifts to charities of general interest or recognised as of public utility in France would allow you to benefit from a tax reduction of 66% of the amount gifted up to a maximum amount of 20% of your taxable income. Gifts to charities who help those in difficulty receive a tax reduction of 75% of the amount gifted for amounts under and including €1000. Any amount over €1000 will get a tax reduction of 66%. In both cases the tax reduction cannot be more than 20% of your taxable income.

December is the last chance to add some money to your PER retirement accounts if you have the money to do so and if you want to reduce your tax liability. You can put as much as you like into the PER but the tax benefits are limited to either up to 10% of your annual income up to a certain amount or 10% of the PASS (see below). You may also use any unused amounts from previous years, these will appear on your 2023 tax statement. This amount is deducted from your taxable income before being assessed at your marginal rate.

The PASS (plafond annual de la sécurité sociale) has increased by 1.6% and is set at €47,100 for 2025 or a monthly amount of €3925 (compared with €3864 in 2024). This has an impact on the maximum amount you can receive from daily sick leave pay for occupational illnesses or maternity pay, disability allowances or French pensions. It is also used to calculate the maximum amount you can pay into a PER retirement account.

There are still a few weeks in December and I will be working until 20th, seeing existing clients and meeting new ones. We are going to spend a few days in London and then travel up to Liverpool to spend Christmas with my family.

I hope you have a lovely holiday season with all your friends and family and I look forward to bringing you more financial news and information next year.

As we head into October, this means that we are now three quarters of the way into 2024. When we look at the markets we can see that in spite of a short dip in August, the year to date figures for almost all of the main market indices are showing performances in the double figures.

Autumn is the season for what are known as local taxes, i.e. the taxe foncière, taxe d’habitation and tax on vacant lodgings. Whilst the taxe d’habitation only affects those with second homes, taxe foncière has to be paid by all property owners. Properties that are inhabitable but remain vacant, which are situated in one of the 3697 communes listed in the decree number 2023-822 of 25.08.23 and which have been left unoccupied for at least a year as at 1st January of the tax year may be subject to the annual tax on vacant lodgings. For a property to be liable for this tax in 2024 it must have been empty since 1st January 2023. If it has been vacant for 2 years since 1st January 2022 there may be a local tax on vacant lodgings which may apply.

The Taxe Foncière statement should already be available in your account on the impots website. This must be paid by 15th October or you have until 20th October if you pay online. It doesn’t need to be paid all at once, you can set up monthly payments so that by the time October comes along you will have paid most of it with the extra amount being paid in November. Whilst the Taxe Foncière will increase again this year, not everyone has to pay it. Those on benefits (ASPA, ASI) are exempt as are those who are aged 75 or over on 1st January of the tax year and those on disability allowance (AAH) provided that their annual taxable income is under €12,455 per person or €19,107 for a couple. If you fall under the income threshold and are over 65 on 1st January there is a €100 reduction. There is no need to notify the tax offices, any exemptions or reductions will apply automatically provided that you meet the income conditions. However there may be extra allowances granted by your local authority so it is worth making enquiries.

From 24th October 2024, anyone opening a new French assurance vie or PER will now have the possibility of investing in venture capital investment funds. These are only for those with a balanced risk profile (around 4% of the investment) and adventurous profiles (up to 8% of the assets). There is no obligation to invest in such funds for cautious profiles. For PERs it will depend on the attitude to risk of the policy holder and how long they have until retirement. Also, from the same date, if you have a PER they will now be able to offer more adventurous investment strategies.

Although the weather may be getting cooler and you want to spend more time indoors, if you have any financial questions you would like answering, I would be happy to arrange a video call or I could come and meet you in the comfort of your own homes. Please do get in touch to arrange a time that would suit you best.

I hope you all had a good summer. I very much appreciated the fact that it wasn’t too hot over the summer. My garden is certainly in a better shape thanks to the better weather. Now it is back to school and back to work and I am looking forward to setting up appointments and meeting people again.

For those who are eligible for the energy cheque but did not receive it this spring or if you did receive it but would like to review the amount received, you can now make a claim on the website chequeenergie.gouv.fr but you must make sure you do this before 31st December 2025.

On 1st August the interest rate of the LEP savings account reduced to 4%. To be able to open one of these accounts your taxable income needs to be below €22 419 (single person) or €34 393 for a couple. This rate reduction puts the LEP at only 1% higher than the other savings accounts such as the Livret A, the LDDS and the Livret Jeune which have an interest rate of 3%, set rate until February 2025.

If you are looking to save for your children there is a new savings plan called the Plan Epargne Avenue Climate (PEAC) which is available from 1st July 2024. It is a hybrid of the Livret A and the PER retirement scheme and allows you to save up to €22,950 with any gains being free of tax and social charges. There is no fixed interest rate, any gains will depend on the investment strategy but the investments are ESG and in “green” bonds. However not many banks or insurance companies offer this savings plan as yet preferring their own versions of assurance vies.

Since 31st July and until 4th December, those taxpayers who declared their income online can correct their declaration or amend any omissions by going onto their personal account on the impots.gouv.fr website under “accéder à la correction en ligne”. However, bear in mind that if the amendment results in less tax being paid or a higher tax credit, the tax office will probably contact you for more information or documents and can refuse to amend the tax return. If they do this, you need to make a complaint via the messenger service and, if this is refused, court action will be necessary. This comes from a decision of Paris administrative court of appeal of 28th June 2024 (no 22PA04610) whereby the the Court ordered the tax office to reissue the tax statement will the requested amendments. The online correction system does not let people know that their amendments can be refused.

As from September, if the amount of tax you pay is greater or less than the previous year, your monthly payments will change from 15th September. If you owe less or the equivalent to €300, the remainder will be taken on that date. If you owe more than €300, the payment will be spread out over four payments taken on 26th September, 25th October, 25th November and 27th December.

For those with Pru assurance vies or those thinking of investing in a Pru Assurance Vie, on Tuesday 27th August 2024 the Prudential Assurance Company (PAC) board reviewed the Prufund Expected Growth Rates (EGR) as part of the quarterly review process. Prufund aims to help customers grow money over the medium to long term ( 5 to 10 years) and it protects customers from some of the short-term ups and downs of the markets by using the unique established smoothing process. The Expected Growth Rate (EGR) is the forward looking element of the Prufund smoothing process. For this quarter the EGRs of the Prufunds in our assurance vie products remained unchanged for the € and $ but the Prufund Growth GBP dropped slightly from 7.7% to 7.3% and the PruFund Cautious GBP dropped from 7% to 6.6%. The Unit Price Adjustment (UPA) part of the smoothing process, which is a backward looking element, and which is formulaic and non-discretionary are also reviewed quarterly. This quarter there was an upward UPA for the Prufund Growth USD fund of +2.19%.

September is really the beginning of the year in France, more so than January, after the long summer holidays. Referrals are very important in our business and so is our reputation with clients. Therefore we are asking clients to kindly give a review of our advisers and our business on Trustpilot. I would be very grateful if you would kindly take the time to leave a comment using the link below: https://uk.trustpilot.com/review/spectrum-ifa.com

Please do get in touch to arrange a free, no obligation phone call or video meeting to discuss any financial or tax matters that you may need advice on. I look forward to hearing from you.

During one of the presentations that we received in January at our annual conferences, we were told that this year 40% of the population would be going to the polls. Now, with Macron’s decision for an election, that figure has increased to almost half the world’s population.

Having already voted in the European elections earlier in June, I will now be voting in both the French elections at the end of June and the UK elections in July. Three elections in the one year! The first round of the French elections was on Sunday 30th June and the second round on the following Sunday, 7th July.

What does this mean?
Well, notably it means that any law reforms that had been going through the French parliament have now been suspended. What will be on the parliamentary agenda will be determined by whichever party gets the majority.

So far the markets seem to be less interested in the elections and more interested in the decisions of the central banks. With the European Central Bank reducing its interest rate by 0.25% on 6th June 2024, all eyes are on the Fed and the Bank of England to make a decision about their rates in the coming months.

As from 1st July 2024, Autoentrepreneurs carrying out a non-regulated ‘liberal’ activity under the micro-BNC regime will have to pay increased social contributions. The rate will increase to 23.2%.

Come the autumn months we will have to pay taxe foncière and taxe d’habitation for those with second homes. These taxes increased by 7.1% last year because of inflation and they are predicted to increase again this autumn by 3.9% due to the reassessment of the rental values. There may also be an additional increase if the local authorities of towns of more than 100,000 inhabitants so decide, which will be 1.2% on average.

From 31st July and until 4th December, you will be able to amend your online tax declaration on the impots.gouv.fr website if there is any information you missed out or you realised there were mistakes made but you were just trying to submit the return before the deadline.

Your tax statements will be available over the summer from 24th July and end of August. If you have paid too much tax, your statement will be available between 24th July and 2nd August online or between 24th July and 29th August by post. If you still have some tax to pay after your monthly contributions your statement will be available online from 26th July and 2nd August or by post between 25th July and 23rd August. If you opted not to receive paper statements, you will receive an email letting you know that your tax statement is online.

If you have less than €300 to pay in tax, this amount will be taken on 25th September 2024 but if you have more than this, then the payment will be spread out into 4 payments taken 25th September 2024, 25th October 2024, 25th November and 26th December 2024. You will continue to pay your normal monthly tax payments on 15th of each month but these will be adjusted as from September.

Tax season is pretty much over for another year, and by the time of publication most of the deadlines for filing will have passed. However, if you have an accountant who does your tax return they will usually be given extra time to file the returns. If you submitted your own return but have questions about whether you did it right and would like to speak to an accountant about it, you should try to speak to them late June, early July or early September to submit an amended return.

May is always a busy month for me, not least because of all the tax enquiries. However I also found time to write an article on French pensions. If you haven’t seen it already you can find the link here (https://spectrum-ifa.com/french-pensions/). If you have any questions on this article or your French pensions in general please do let me know

People often ask me whether they have to send in documents with their tax return or whether they are likely to get asked about what they have entered. The fact of the matter is that very often the tax office only really focuses on the tax returns of the very high earners (income tax, wealth tax, inheritances etc…). The French tax office generally go after the biggest fish, notably those with an income of over €1million per annum or gross assets that are subject to wealth tax of more than €6.9 million. However if you do start to do a wealth tax return you may find that your local tax inspector will take more of an interest on this one.

In 2020 there were a lot of people who, after many years of holidaying in France and owning a property here, decided to be considered resident in France before the Brexit deadline of 31st December. For wealth tax purposes you are exempt from declaring your worldwide assets for the first five calendar years of your residency. Unfortunately, even if you arrived late in 2020, this would still be considered your first calendar year. This means that as from 2025, if your world wide assets are worth more than €1.3million as on 1st January 2025, you will have to do a wealth tax return next year. You only have to declare your property assets, irrespective of where they are in the world. If you have money in investments or assurance vies, these are not included in your wealth tax return.

At this time last year, after having completed our tax returns, we still had to do the property declaration. This was an online declaration. Now, almost a year later, the tax authorities have produced a paper format of the declaration. You can download the paper form here https://www.impots.gouv.fr/formulaire/1208-od-sd/declaration-doccupation-des-locaux-par-le-proprietaire or some tax offices may have copies available if you cannot print it yourself.

Every year I get a lot of people contacting me about Trusts. Many years ago I wrote an article on Trusts which you can find on our website (https://spectrum-ifa.com/trusts-and-french-residency/). I have not updated the article because the law has not changed a great deal on this subject and much of the information is the same. If you are the trustee, settlor of beneficiary of a trust and you are resident in France you have to declare the existence of the trust using the form Trust 1 (https://www.impots.gouv.fr/formulaire/2181-trust1/declaration-de-constitution-de-modification-ou-dextinction-dun-trust).Then every year you have to declare the value of the Trust as at 1st January of each year using the Trust 2 form (https://www.impots.gouv.fr/formulaire/2181-trust2/declaration-annuelle-de-la-valeur-venale-au-1er-janvier-des-biens-droits-et-)

The deadline for filing the annual value declaration, which must be sent to the Non-Residents tax office, is 15th June.

If you have any questions on any of the matters mentioned above please do get in touch. I would be happy to arrange a phone call, video meeting or in person meeting to answer your questions or review your financial situation.

Many people come to France for “la belle vie” in retirement, but a large number of us (myself included) moved to France way before retirement and have even spent several years working in France contributing to the system here. Therefore when it comes to retirement, in addition to any other state or private pensions, we will need to apply for our French pension(s)..

Since 2017 the procedure to apply for your French pension has been simplified. You make one application and all your pensions from the various pension organisations will be paid to you. However, in practice things may not always go as smoothly and there have been numerous complaints from those trying to claim their French pensions.

No matter how long you have worked in France, or which pension body you have contributed to, you can consult your pension rights on this website www.info-retraite.fr. This is the website that you need to use to apply for your pension. You can also download from this site your pension entitlement statement. If you are getting close to retirement it may be advisable to download this document and keep a copy of it in your paper or computer files as it is updated each year so it is important to check it every year. The website may not take into consideration any years that you have worked in other countries in Europe, so you may need to email them to ask for more detailed information showing all the countries you have worked in.

If you can see that any periods of work in France have not been recorded, rather than asking for them to be investigated, it is better to ask whether you can buy any trimestres. By doing this, the pension authority will then have to investigate whether you can in fact buy any trimestres or whether you are fully up to date on all the periods you have worked.

Since 1st September 2015, is has been possible to obtain a provisional payment of your French pension even if your application is not “complete” and then have your pension recalculated once you have been able to provide the missing information. To do this you must apply for the pension four months before the planned date of retirement.

It is important to plan ahead and start the process of applying for your French pension 4 – 6 months before your intended retirement date. By requesting your retirement this will prompt the pension authority to start to calculate all the periods you have worked and what you may be entitled to.

If you are not satisfied with their response there is a mediation service available. You have 10 days for an urgent request, 40 days for non urgent requests, which may be extended to 90 days in more complex cases, and two months to apply to the Commission de Recours Amiable (CRA). If you are still not satisfied with the decision you can apply to the Defenseur de droits.

For those whose deceased spouse worked in France they may be entitled to a French widow/ers pension. Like other pensions, this should also be paid to you within four months of the date of application. However, this pension is means tested according to your annual income so you may find that you don’t qualify for it.

It is important to plan ahead and there are many things you can do at various stages:

1. 1. Throughout your working life in France, keep all paperwork. As cumbersome as this may be, it is important to keep all payslips, pension letters, social security payment statements, as you may need them when you apply for your pension.

1. From age 50, if you haven’t already created and consulted your account on the www.info-retraite.fr website, now is the time to do it. You should regularly download the career statements and save a copies. Sometimes any missing periods may appear on earlier statements but not on later statements.
2. From age 55, you can request pension simulations. The closer you get to retirement the more accurate these simulations are likely to be.
3. Once you reach 61, think about working part time from age 62 as a progressive retirement and look at buying back any missing trimestres. You have to buy back the trimestres before going part time. Once you start receiving your pension you cannot buy back any missing trimestres.
4. 4-6 months before your retirement date, start applying for your pension.

Can an employer force you to retire?
Strictly speaking an employer cannot force you to retire before you are 67 years old. If you want to retire before this date you have to request to do so and comply with the requisite notice period. Only when you are over 70 can an employer require you to retire without consulting you. Between 67 and 70 they can retire you, but only if you agree to leave. It is better to be asked to retire rather than voluntarily taking retirement since the statutory amount of retirement benefit is higher than the voluntary retirement benefit when it is the employee that requests it. You may have even more favourable provisions in your Convention Collective. This retirement benefit is exempt from income tax (except the higher amounts) whereas the voluntary retirement benefit is taxable in the same way as your salary.

For any questions about your pensions or planning your retirement, please do get in touch.

Tax season is in full swing at the moment and as with every year I have been getting lots of questions and queries relating to tax matters in France.

Over the April holidays I did sit down to do our own tax return and therefore was able to see whether there were any new aspects in the online declaration. I’m one of those people who prefers to know rather than waiting for surprises and this particularly applies to tax returns. Either we will have more to pay in which case it would be best to be prepared or we have less to pay in which case I want to know how much the tax refund will be. Because of the increase in the tax bands, if your income was comparatively the same in 2023 and in 2022, then you should have less tax to pay this year. In spite of my many years of experience of doing tax returns, I am not infallible and I did actually have to go back into our tax return to correct it. So based on my own mistakes I thought I would give you some tips about what to do and what not to do!

1. COLLECT YOUR FIGURES – Make sure that you know what kinds of income you and your partner received and what the figures are whether they are taken off a bank statement or a certificate. If you have foreign income you will also need to know the exchange rate on the date on which you received the income or the average Bank of France rate for 2023.
2. CHECK THE FIGURES ALREADY ENTERED ON THE TAX FORM – if you or someone in your tax household has received income from a French source (pension, salary, French bank income etc) then this should already be entered on the tax form. Nonetheless it is still worth checking that these figures correspond with any certificates issued by the relevant body or the December 2023 payslip. Even though my husband works for a French public body they don’t always communicate the right figures to the French tax office so I have learnt that it is worth checking and querying any differences.
3. CHECK THAT ALL THE DIFFERENT TYPES OF INCOME ARE TICKED – Before you get to actually declaring the income you need to tick the boxes of which type of income you will be declaring. Some may already be ticked from previous years but others may not be even though you have been declaring the same type of income for years. If you have received another source of income then you need to tick the box for this new category of income. If you are declaring online not all the pages and the boxes will appear and it is easy to overlook something.
4. REMEMBER THE ANNEX FORMS – in particular the 2047 for foreign income and the 3916 for foreign bank accounts. Regarding the latter, your information from the previous year should already be entered so you only have to carry over this information from last year but if you have opened or closed an account in 2023 or one is not mentioned on the form you will have to fill in the details. You will also have to declare the value as at 1st January 2024 of any foreign assurance vies. For the 2047 you may need to swap between this form and the main 2042 form to check that all the income is correctly entered and carried over onto the 2042.
5. DON’T FORGET YOUR TAX CREDITS – We have had a piano teacher paid via CESU and the amounts declared were already entered on the tax form however the amounts paid to our cleaning company were not. So if you have had any home help (cleaners; gardeners, lessons etc) they should have sent you a tax certificate for last year so you will need to enter that amount in the tax credit section.
6. RETIREMENT CONTRIBUTIONS – more and more of us work in France and contribute to some sort of retirement (PERP or PER). This was where I made a mistake this year because whereas the amount showed on the form, it is not deducted from your tax until you reenter these amounts in the correct box. Given that this is a deductible expense from your income it can amount to a significant tax reduction, so it is important to make sure that it is is correctly entered.
7. CHARITABLE DONATIONS – this is another one often overlooked. Normally any charity you donate to should have sent you a tax certificate and you will need this document to claim the tax deduction. If you know you have made a donation make sure that you find the tax certificate or request it from them if they haven’t already sent it.
8. NOBODY IS PERFECT – you can start your declaration and go back to it. You can do one version and then go back and change it. Once you get to the signature page which shows the tax due (this won’t appear if you have foreign income that will receive a tax credit) if something seems wrong you can go back and amend it. You can do this as many times as you like until the official deadline without it generating separate tax bills and even after the deadline provided you have submitted something before the deadline. If it gets close to the deadline it is better to declare something and sign the tax return and then correct it at a later date rather than incur a fine for late submission.

If you haven’t already engaged a tax lawyer or accounting firm to help you out with your tax return then it is too late to do so as they will be too busy at this time of year. Therefore you need to get something onto the tax form and get it submitted by the deadline. It doesn’t matter if it is incorrect you can always amend this year’s tax return at a later date.

If you have any questions on your taxes or finances in France please do send me an email and I would be happy to arrange a time to speak to you.

April is an important month of the year as, not only is it the end and beginning of the UK tax year but it is also the beginning of the French tax season.

If you are impatient to start declaring your income for 2023 then the tax forms should be available in the next week or so (at the time of writing no official date has been given) but whether you decide to get started in April or wait until May it is important to know the deadlines for submitting the forms.

If this is your first year submitting your tax return you will need to do a paper declaration by the 20th May 2024 (date to be confirmed). Which means that you need to collect the paper forms from the tax office and fill out the information by hand.

The other dates for the online tax declaration service are:

I shall be tackling our tax return in the April school holidays so in my next Ezine I shall be addressing any issues that I have noticed and be giving you all my tips for filing your 2023 income tax declaration.

Do you remember the fun you had last year doing the occupied properties declaration? Well, the good news is that you don’t have to do it every year! You only need to do another one if there are any changes to the occupancy of your properties. Whilst the declaration does have to be done online,18% of property owners did not do a declaration last year and the tax authorities shall be issuing a new paper declaration for those who are unable to do their declaration online.

Did you know that students do not pay taxe d’habitation on their student accommodation (CROUS)? However, a ministerial response in January (no 7826 of 09.01.2024) has clarified that this exemption also applies to students who are still included on their parents’ tax returns but who live away from their parents in private student accommodation or who flat share.

As from 1st April many benefits, including family allowance, disability allowance and RSA, will increase by 4.6%, as a measure to mitigate the effects of inflation.

Those of you who do furnished rental were quite alarmed by the French government’s “faux pas” in the 2024 finance bill which lowered the micro threshold to €15,000 and the abatement to 30% thus forcing those who were over this limit to go into the costs (regime reel) based system. As expected, this has now been rectified and landlords can use the former thresholds (€77,700 micro-BIC with a 50% abatement for costs – https://bofip.impots.gouv.fr/bofip/3610-PGP.html/identifiant%3DBOI-BIC-CHAMP-40-20-20240214). Hopefully all the organisation will have got the memo but if you do have any problems please do refer to the link above. As always, if I hear anything further on this I will let you know.

There are three pillars to the French pension scheme, the basic social security pension, the complementaire points based system and the private PERs. I strongly advise anyone who has worked in France to create their profiles on the www.info-retraite.fr website and to regularly consult this website especially when you are getting closer to retirement age. I noticed on my own account that whilst I had accumulated points as a salaried worker, since starting my business in 2017 I had not received any further points nor had I been asked to contribute to receive them. This has now all been cleared up by a decision of the Council of State on 9th February 2024 (no 471203) which nullified a decree that provided that auto-entrepreneurs under the micro-BNC regime and micro-social regime that pay a set rate of social contributions of 21.1% do not acquire points under the complementaire retirement scheme. A new law should be published soon rectifying this as from 1st June. This will however imply that the rate of social charges will increase.

If you have any questions on your finances or taxes in France please do get in touch and I would be happy to arrange a phone call or meeting to discuss your concerns.