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Financial update in France

By Katriona Murray-Platon - Topics: France, Tax in France
This article is published on: 6th December 2022

The fuel allowance, tax returns & retirement planning

So here it is, Merry Christmas! I hope that you are having fun or planning to do so. There is much to organise before the end of the year, so before you get too wrapped up (excuse the pun) in Christmas preparations, I wanted to fill you in on some bits of news/financial points for the end of the year.

Given the increase in energy bills, the French government shall grant two one-off fuel allowances to help people pay their energy bills. Around 12 million homes will receive a one-off energy cheque. If you are eligible for the fuel allowance you should receive this €200 cheque automatically,. If your taxable income (revenu fiscal de référence par unité de consommation (RFR/UC)) is greater or equal to €10 800 € and less than €17 400, you will receive a cheque for €100. This cheque will be sent automatically from the end of December, you do not have to do anything to get it.

For the homes using “fioul domestique” : If you have already received the energy cheque for 2022 and you have used it to pay for your heating from a “fioul domestique” supplier you will automatically receive another cheque for €200 from November 2022

If you haven’t received this yet or you want to check whether you are available there is a website here https://chequefioul.asp-public.fr/ and through this you could receive a cheque for between €100 and €200 depending on your situation. If you haven’t received any cheques and you can’t make a request on this website you can contact them via this website: https://chequeenergie.gouv.fr

For those of you thinking of replacing your heating system with something more energy efficient, since the 29th October, the lower income households could receive €5000 of state aids (instead of €4000) and other households could get up to €4000 instead of €2500.

The annual social security ceiling (plafond annual de la Securité social) which is used to calculate various retirement contributions and the maximum allowed amount of benefits and French pensions has increased to €43,992. A monthly maximum of €3,666 will apply from 2023. This is the first time that this has increased in three years!

Please note that you have until 14th December to correct your 2021 tax return on your personal account on the impots.gouv.fr website. After this date you will have to correct it using a paper return.

The 15th December is the last day to pay the taxe d’habitation for second home owners in France. You have 5 extra days if you pay online or by direct debit.

Tax in France

If you are self-employed in France and earn over €5000 per annum, you will have to pay CFE. This is a local tax and is based on the rental value of the space you use for your business. If you don’t rent premises for your business, you have to pay the minimum CFE and this will be calculated on your annual turnover. It all depends on the rate applied by your local authority. The CFE must be paid by 15th December. You can also spread the payments out over the year.

Finally, if you are still actively working in France and are likely to do so for the next 10 or 15 years or more, and you pay tax at least in the 30% tax bracket, it may be worth opening a PER. If you already have a PER, and you have some money to invest in it, make sure you do this by the end of the tax year, ie 31st December 2022. If you are in the 30% tax bracket, 30% of the amount you invest in the PER can be deducted from your tax (41% if you are in this tax bracket) up to a maximum amount of 10% of your net taxable income from the previous year and up to a maximum amount of €32,419 in 2022.

2022 has been a brilliant year for me, my best so far, and I have been so happy to welcome lots of new clients.

I want to thank all of you for your time and attention to these newsletters and your kind comments. I especially want to thank all my clients for entrusting me to set up their investments. As always if you have any questions on the above or any other matters please do get in touch.

I shall be away from 18th to 28th December, first to Disneyland Paris and then to the UK for a good ol’ British Christmas with my family. I will be checking emails and can do phone calls if necessary.

I wish you all a very Happy Holiday season and look forwards to speaking to you next year!

Regards
Katey Murray
Partner
The Spectrum IFA Group
Mob: 06 81 61 78 44
Tel: 09 53 28 88 22

Katey Murray The Spectrum IFA Group

Article by Katriona Murray-Platon

If you are based in the Poitou Charentes, Limousin & Aquitaine area you can contact Katriona at: katey.murray@spectrum-ifa.com for more information. If you are based in another area within Europe, please complete the form below and we will put a local adviser in touch with you.

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