Fuelling the black economy ?

[beenz]

We have just about completed the renovations on our house in Argeles and were surprised to be asked for a substantial amount of the fees to the 'Company' overseeing the project to be paid in Cash. I wouldn't quibble but I believe if we come to sell the house that such bills can be used to offset Capital Gains. Also I have heard so many stories of people paying in cash then being fined after being 'dobbed in' . I know that the black economy in France is alive and well but I feel if I pay then I might be doing us a disservice further down the line. Can anyone clarify the tax implications for us, we have not been here long enough to get that familiar with the system.

[blackduff]

beenz
First, if this is your primary residence, you won't have to worry about the capital gains. It's not applicable, if that's where you live.

If you're going to live here, take a look into the Cheque Employee (check the spelling) system. In my case, I pay the cheque to my gardener and then he's covered by his pension, etc.. Plus, the Gendarmes will not try to put you into jail.

Sure, this is a bit more expensive than plain "Black" but you're legal and then the employer will get the long term benefit.

Blackduff

[Puddles]

Beenz,
When you say a large amount of the fees , you should take note that any amount in excess of 2999.99 euros must be paid by cheque; It is a crimial offence to pay anyone a sum in excess of this for profesional services in cash.
Also , if they are demanding cash, get a receipt for the Vat, TVA in France.
That way you will be a bit on the right side in case of any comeback.
Dont part with any money without them producing a receipt with the siret No. & TVA number; If they wont do so go talk to the Centre de Impots;
Hope this helps;

[Kate]

Take care as well that this does not affect your rights, insurance etc if any problems follow. Paying au noir occasioanlly is a way of life here in part payment for small things where possible, as the small artisan has a constant struggle just to survive, but you should never pay au noir for anything that could require any follow up work etc

[john]

Beenz,
When you say a large amount of the fees , you should take note that any amount in excess of 2999.99 euros must be paid by cheque; It is a crimial offence to pay anyone a sum in excess of this for profesional services in cash.
;

Thanks for that Puds. I knew there was a limit...just didn't know what it was!

It's fair to say that not everyone who asks for cash is "on the noir". I've dealt with several kosher artisans who like cash,as that's what THEIR suppliers want. Not everyone will give credit nowadays. Not the artisan's fault. Blame the supplier and the "pay on tic" mentality that has been prevalent up to now.

But,what Kate says is eminently sensible too.

[beenz]

Thanks for all the input, I will bear in mind the legal and impots implications. I wasn't aware of the 'legal limit'
Merci..

[Hooray henry]

I was told I would be liable to CG tax when I sold my property even though it is my main residence as i am a UK tax payer. I am liable to 16%.

[blackduff]

HH
You must have something wrong. If you are residence in France, you should be paying tax to France. More than likely you're being charged for Capital Gains on your property since to the French authorities believe you live in the UK,ie, you don't make a declaration in France.

Without being rightous, you have two boots trying to across the channel.

Blackduff

[john]

Yes,BD,I too am not following HH's logic here.

If this house is his main residence in France,and he pays tax here,then he's not liable to CGT either here or in the UK.

I think we need clarification.