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hi
can anyone tell me where i can find out what the conversion
rate is for this year to convert my pensio from pounds to euros
for my tax forms for june 2013 for the tax year ending dec 2012
i beleive the hacienda(tax office ) set a figure every year on the 31st
december
also does anyone know what the personal tax allowances are for 2012.
any replies appreciated
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It would seem, from your post, that you are not going to complete the Tax Return yourself. In which case you Gestor, or whoever, will have the info.
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hi johnzx
you are correct i do use a gestor to complete
my tax return but I thought if someone on this site
could give me the info I asked for then I could work out
myself in advance if i had any tax to pay this year
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I found this on the internet
Personal Allowances
Individual €5.151
65 and over €6.069
75 and over €7.191
As for the exchange rate.,¡ As it is only for an estimate, 1.23 euro to GBP would be more or less right.
I have use a Gestor for the past 7 years. I am married. It is usually a joint return, but one year the Gestor recommended separate returns. I paid 600 euros tax and my wife claimed it back. The gestor's 40 euro fee was well worth it.
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Tara
that was why I did not say what year it related to.
However, I don’t have enough income (that is taxable income in Spain) to actually pay any tax here.
But I found this as well, whuch seems incorrect but ........................ !
www.spainaccountants.com/it.html
Notes on income tax in Spain for the year ended 31st December 2013. Personal Allowances for Spanish income tax. Capital Gains and Losses. Trading income ...
Personal Allowances for Spanish income tax- minimo personal
General allowance 5,151 euro
Age allowance (65+) 6,069 euro (75+) 6,273 euro
Disabled allowance 2,316 - 7,038 euro depending on degree of incapacity
Child allowance
First child - 1,836 euro
Second child - 2,040 euro
Third child - 3,672 euro
Each further child - 4,182 euro
Elderly relative living with family whose income is less than 8,000 euro pa:
65+ 918 euro
75+ 1,122 euro
Maternity allowance (Reduccion por cuidado de hijos)
2,244 euro pa per child under three years old.
Earnings related Personal Allowance (for employees)
Earnings not more than 9,180: 4,080 euro
Earnings 9,180 to 13,260: 4,080 - 35% x (Earnings - 9,180)
Earnings 13,260 + : 2,652 euro
This message was last edited by johnzx on 24/03/2013.
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" That's a bit out of date John. For 2012/13 it is £8,105, and for 2011/12 it was £7,475"
Those are the UK allowances Tamara. Johnzx gave the Spanish allowances, which I think is what the OP asked for. However, in addition to the personal allowances Johnzx quoted there is an earned income allowance of between €4080 and €2652 on sliding scale between €9180 and €13260. So if you earn €13260, your allowance is €5151 plus €2652.
The married persons allowance for a joint return is €3400. For a individual return they get the above allowances. So it depends upon the income of each individual as to whether its more benficial to submit separate returns.
The allowances in Spain haven't changed for a few years. This message was last edited by kathyslad on 24/03/2013.
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thank you everyone for your replies.
I received a document this morning from my
gestor.
applicalbe to myself personal allowance 5,151
earned income (including pension)
up to 9,180 4,080
total allowance for me before tax 9,231
my husband over 65
personal allowance 6,069
earned income (including pension)
up to 9,180 4,080
total allowance before tax 10,149
our gestor does a joint tax return as he said it is more beneficial
to us.
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Hi there
I use this Website when converting Pounds to Euros
http://www.ecb.int/stats/exchange/eurofxref/html/index.en.html
Regards
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Nigel
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Nigel,
Formentera was not asking what the exchange was in a general sense but what was the OFFICIAL RATE as declared by the tax agency.
They have a specific rate, for each year, say 2012, which one must use when declaring income received in another currency during that year, for example in Pounds Sterling.
In my case, my UK state pension is paid directly to my Spanish bank account in Euros, so I do not need to know.
This message was last edited by johnzx on 25/03/2013.
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John
I will be comparing the rate actually used, in the transfer monthly, with the end of year rate. There may just be an advantage, if tax is due in Spain, on a lesser figure arising. Hacienda will be interested in the pension amount arising in sterling, and would not be particularly interested in the date(s) and FX used every month.
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Marc, I think you have misunderstood.
My income is in Euros every 4 weeks. It is paid by the DWP. Thus, it is a Euro income. What that might relate to in any other currency has no bearing..
If it was paid into a UK account and then transferred, it would be the official exchange rate for the year, which Hacienda would look to.
One cannot adjust the figures to suit oneself.
I have paid my tax in Spain based on this ‘system’ (income in pesetas and then euros) for the past 25 years. I have made tax returns at the Hacienda office assisted by them, done in myself, used an accountant and used a gestor, over that time. They have all used the same MO.
This message was last edited by johnzx on 25/03/2013.
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John
You may be right. Nonetheless I will investigate my theory. The DWP does not in fact pay our pensions in Euros, it submits pensions in £ to a bank (albeit a specialist FX desk) which then exchanges it into €, and sends this to Spain in the same way as any other FX desk would do so. I will discuss with my Gestor! Let you know the outcome in due course.
Regards
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Thanks Marcbernard,
It will be interesting to see if your ‘expert’ agrees with mine in Hacienda, my accountant, my Gestor and my own interpretation.
However, from other exchanges, I understand, you get paid in GBP, which are then exchanged into euros and transferred to your account in Spain in Euros.
In my case, the DWP does not give me anything in GBP, but pays me in Euros, the equivalent to what I would get if they paid me in GBP. That they use a bank as part of the payment system does not affect me as I have no control or possession of the money until it arrives in my Spanish account.
If DWP paid GBP into my UK account, (which I had control over) and my bank transferred the money to Spain, I would be the same position as you and would need to use the official annual rate.
This message was last edited by johnzx on 25/03/2013.
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I beleive johnzx is correct.
if you are paid your pension in pounds
as I am then you have to use the haciendas
official exchange rate as at the 31st dec for the
relevant tax year
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