The Bank Genie P&L Program and Multiple Tax Years

[ideasguy]

RE: (JohnManley in another topic)

Now you knew I would muck things up!  What if you have a different start / end to the year.  In France the tax year is 1 January to 31 December but as I pay tax in the UK (as well) I have to work in 2 differing financial years for tax returns.

Its a perfect time to bring that one up John.
I think I can make it work, all in the same database.

Question: Are the transactions for the French tax year the same as those for the UK for a given date range?

If they are NOT, are the transactions for UK from one set of Bank accounts e.g. banks 1, 2 and 3, and the one for the French tax year from a different set of bank accounts e.g. Bank 4, 5 and 6?

If on the other hand there are any transactions which have to be declared to both UK and France, then I can do a quick redesign, since the P&L program is still under development.

[johnmanley]

Bonjour, I don't declare totally the same things in both countries as in the UK they are April to March (say 2009 to 2010) in France it is Jan 2009 to December inclusive so I end up calculating work pension for 3 months of the 2008 / 2009 UK tax year and 9 months of the next.  UK tax is taken as PAYE, French tax is after the year ends following a tax return up to 4 months after then end of the tax year with payment due a couple of months later. All other income is only taxable in France (some sterling, some euro) so I enter it in the French tax year in which it falls.  I have to include in the French tax return the tax I have paid on UK income so that I don't pay tax twice on the same money.

1 bank in the UK (3 accounts) and 1 bank in France (4 accounts). I write myself cheques on the current account in the UK to transfer money to a Sterling account with the bank in France.  I then move money into the euro account as and when.

[ideasguy]

Thank you for that very detailed information, John. Its perfect to use as a model for planning my P&L program.
I hope its not personal information. Am I right in saying it is a common model for anyone living abroad with UK pension(s)
(e.g. living in Spain, Portugal etc).


One question:

in France it is Jan 2009 to December inclusive so I end up calculating work pension for 3 months of the 2008 / 2009 UK tax year and 9 months of the next.

You have to declare your UK pension figures in both your UK and French Tax returns?
In the UK, for as sample year, its April 2008 to March 2009. In France its the sum of the same UK pension for Jan to Dec 2009.
In the French tax return, you also return the amount of Tax you paid in the UK for Jan to Dec 09 to avoid duplicate tax payments.
Have I understood this correctly?

[johnmanley]

Only "Government" pensions are taxable in the UK which is a very annoying subject as I didn't get my pension for free but had to pay for it unlike the Civil Service. I don't now do a tax return in the UK as such - they trust me as they know what the pension is and everything else is taxed in France.  The UK PAYE tables take care of their slice.  All UK bank interest (when there is any) and top up pensions are paid gross in UK with a tax ememption certificate.  They are then taxable in France or any other country of residence.

And yes you did understand correctly.

John

[ideasguy]

Thanks for the prompt reply John.
I'm very pleased that you have highlighted this requirement. Its a revelation

I will now redesign the P&L to make it work for this case.
Who knows, perhaps it will help sell a couple of extra boxes

[barryl]

On the subject of years, charities can declare any period to be their financial year, but on the other hand the giftaid year has to be the tax year (not by the way April to March but April 6 to April 5 !)