Non taxable disability income

Online
SP1DER
Posts: 730
Joined: Thu Mar 21, 2019 7:33 am
Location: 16 Charente
Has thanked: 142 times
Been thanked: 144 times

Non taxable disability income

Post by SP1DER »

A friend has a disability pension which is not taxable in the UK. I seem to remember that you do not have to declare non taxable income on tax form here, does anyone have a link to the appropriate Impots article?

F Flinstone
Posts: 169
Joined: Fri Mar 02, 2018 8:05 am
Been thanked: 19 times

Re: Non taxable disability income

Post by F Flinstone »

The wife is in the same situation, for the past 12yrs we have declared all our income which in my case is ex- government worker and the wife's disability, I have only ever paid tax in the UK on my pension, no taxes here in France. :) However this year we have been taxed in France a thirty times increase over what I was paying in the Uk :x Have gone through three different tax department and they say I should pay it here, having just received my P60 and the wife's proof of un-taxable income, I have sent nine copies to each of the three departments, fingers crossed ;) Has something changed this year I dont know, perhaps someone will enlighten us.

User avatar
Tom
Posts: 3415
Joined: Fri Mar 02, 2018 2:30 pm
Location: 58 La Nièvre
Has thanked: 491 times
Been thanked: 926 times

Re: Non taxable disability income

Post by Tom »

Premium bond winnings are non taxable in the UK but the French Impôts don't see it that way and those winnings are taxed. Maybe there are similar rules for disability benefits from the UK as well.
“He who laughs last didn’t get the joke.”
– Charles de Gaulle

User avatar
ANOther
Posts: 159
Joined: Sun Mar 04, 2018 4:17 pm
Has thanked: 3 times
Been thanked: 67 times

Re: Non taxable disability income

Post by ANOther »

SP1DER wrote:
Tue Apr 30, 2019 8:08 am
I seem to remember that you do not have to declare non taxable income on tax form here, does anyone have a link to the appropriate Impots article?
It can't be that simple as a 25% pension commencement lump sum (PCLS) is tax free in UK but taxable in Spain.
Brexit: ‘taking back’ what we had never lost in order to lose everything we had...

exile
Posts: 3738
Joined: Wed Mar 07, 2018 10:06 pm
Location: Central Massif
Has thanked: 1233 times
Been thanked: 1380 times

Re: Non taxable disability income

Post by exile »

The double taxation treaty is the bible in this case and I can find no mention of disability income. It is therefore not covered by the treaty and even if non-taxable in the UK will be taxable in France for French residents.

Edit to add link:

https://assets.publishing.service.gov.u ... _force.pdf

User avatar
Catrose
Posts: 1673
Joined: Thu Dec 27, 2018 9:46 am
Has thanked: 310 times
Been thanked: 613 times

Re: Non taxable disability income

Post by Catrose »

Everything must be declared in french tax return, even if you have paid tax on it in the UK (when you will not be out of pocket as get credits). And even if you believe it is something that is non taxable you must declare it. The fines for not declaring things are high, even if no tax was actually due on the sum in question!

User avatar
Tom
Posts: 3415
Joined: Fri Mar 02, 2018 2:30 pm
Location: 58 La Nièvre
Has thanked: 491 times
Been thanked: 926 times

Re: Non taxable disability income

Post by Tom »

Everything must be declared in french tax return, even if you have paid tax on it in the UK (when you will not be out of pocket as get credits).
:( HMRC will eventually send you a credit but it can be quite kerfuffle because the Impôts have to process your UK claim form. You can't submit the form directly yourself. Thankfully interest in the UK is now paid gross.
“He who laughs last didn’t get the joke.”
– Charles de Gaulle

Online
SP1DER
Posts: 730
Joined: Thu Mar 21, 2019 7:33 am
Location: 16 Charente
Has thanked: 142 times
Been thanked: 144 times

Re: Non taxable disability income

Post by SP1DER »

I think the answer is to declare the invalidity pension + work pension and since he was in government service the whole lot must be taxable in the UK therefore a credit will be given here which means that the total will not be taxed here. The only other thing he has is UK state pension which will be taxable here. That seems to solve it, however as it is his first return I think it is probably best if I go to the tax office with him to get a definitive answer.

Thanks all for your posts.

User avatar
Catrose
Posts: 1673
Joined: Thu Dec 27, 2018 9:46 am
Has thanked: 310 times
Been thanked: 613 times

Re: Non taxable disability income

Post by Catrose »

HMRC will eventually send you a credit but it can be quite kerfuffle because the Impôts have to process your UK claim form. You can't submit the form directly yourself. Thankfully interest in the UK is now paid gross.

Doesn’t work like that for me.....I pay UK tax on my pension, declare it to French authorities. The gross amount is added to my overall revenue (Revenue fiscal de reference, RFR) to calculate the tax I ought to pay, and then the tax due on that pension is credited back so I don’t pay twice. I think what you are referring to is if you get a bit of tax on interest payments or the like.

User avatar
Tom
Posts: 3415
Joined: Fri Mar 02, 2018 2:30 pm
Location: 58 La Nièvre
Has thanked: 491 times
Been thanked: 926 times

Re: Non taxable disability income

Post by Tom »

Doesn’t work like that for me.....I pay UK tax on my pension, declare it to French authorities
:oops: Thanks for the correction. I was talking about the problems I had with claiming a tax refund on interest and dividends which used to be taxed at source in the UK.
“He who laughs last didn’t get the joke.”
– Charles de Gaulle

Post Reply