With May here already, many of us are going to be filling in our French tax returns over the next 30 days. It's strange how 12 months is exactly the length of time takes to lose all confidence that you can remember what figures go where!
The Connexion newspaper recently announced that the average 2011 exchange rate between Sterling and the Euro, (which can be used instead of applying separate exchange rates at each specific date a payment is received in the UK) is
€1.1514 to the £1.
We checked that figure with a big firm of Anglo-French accountants with whom we deal from time to time. They tell us that the rate they use for clients is the average of the Bank of France month-end rates, and that for 2011 that figure is
€1.1483 to the £1,
which is more favourable to the taxpayer. Not a lot, but on a reasonable level of income it will save enough to buy a meal or two out! And it's certainly a great deal better than using the 2011 year-end rate of €1.1920 to the £1.
As a famous tax judge once said (approximately): no-one is obliged to order his affairs so as to pay more tax than he must...
Sent by Karen and Chris Robinson
