Personal finance: what to keep in mind this week

In April 2022, the average mortgage rate was 1.27%. The Prudential Control and Regulatory Authority (ACPR) has appointed distributors of life insurance contracts to better comply with their duty to advise. The gradual retirement has been open to employees on a flat-rate basis since the beginning of 2022. The conditions for terminating insurance contracts will be harmonized. Parents of school children (middle school, high school and higher education) can benefit from a tax reduction. The sums received by individuals for carpooling do not have to be declared and certain conditions are met. The duration of parental leave may be doubled in certain cases.

Summary:


  • Real estate: rising borrowing rates are accelerating


  • Life insurance: The ACPR wants to better comply with the duty of advice


  • The gradual retirement is open to full-time employees


  • Insurance contracts: towards a harmonization of termination conditions


  • Taxes 2022: benefit from the tax reduction for tuition fees


  • Carpooling: Should the amount collected be reported?


  • Parental leave may be doubled under certain conditions

Real estate: rising borrowing rates are accelerating

The average rate on real estate loans (excluding insurance) stood at 1.27% in April 2022, compared with 1.18% in March 2022, according to the Observatoire Crédit Logement / CSA. During the first two months of the year, the average credit rate did not increase slightly before rising much faster over the next two months, without rising at a rate comparable to that of inflation. (4.8% for one year in April 2022). According to the analysis of the Observatoire Crédit Logement / CSA, the demand for real estate loans has been destabilized by the deterioration of purchasing power, rising house prices and the war in Ukraine, but banks are trying to limit rising interest rates. to maintain the solvency of the application.

Life insurance: The ACPR wants to better comply with the duty of advice

The Prudential Supervisory and Regulatory Authority (ACPR) has appointed distributors to life insurance contracts to better comply with their duty to advise fragile financing clients. Indeed, the regulator indicates that these contracts are likely to aggravate the financial situation of customers who do not have precautionary savings to meet their short-term cash needs. The ACPR urges distributors to be even more cautious when dealing with unit-backed contracts, which can lead to potential capital losses and are therefore not suitable for customers affected by a fragile financial situation.

The gradual retirement is open to full-time employees

The phased retirement scheme allows certain end-of-career workers to receive part of their pension, while continuing to work part-time. Previously, employees who have entered into a day-to-day package deal with their employer have benefited from this device. Since the beginning of 2022, these employees are now entitled to it, provided they are over 60 years old and have contributed for at least 150 quarters. The scheme is also extended to employees who are not subject to working hours, or whose working hours cannot be determined, as well as to self-employed workers.

Insurance contracts: towards a harmonization of termination conditions

Work carried out between November 2021 and April 2022 under the auspices of the Financial Sector Advisory Committee (CCSF) will allow the harmonization of the terms of termination of insurance contracts. From 1 July 2023, insurance contracts will be terminated at any time after the first year of subscription, with a few exceptions (pension insurance and dependency insurance contracts, seasonal contracts and contracts covering pleasure craft and equipment. motorized and non-motorized personal travel). In addition, the waiver period under an affinity insurance contract should be extended from 14 days to 30 days.

Taxes 2022: benefit from the tax reduction for tuition fees

Taxpayers whose children are enrolled in middle school, high school and higher education are entitled to a tax reduction related to tuition fees of 61 euros, 153 euros and 183 euros per child, respectively. In order to benefit from this tax reduction, the number of school children, their first and last name, the name of the school and the class attended must be mentioned in their income tax return. It is not necessary to attach the school certificate, but it should be kept when requested by the tax administration.

Carpooling: Should the amount collected be reported?

Individuals who do carpooling against income do not have to declare the sums received to the tax administration on condition that they comply with three conditions, recalls the Ministry of Economy, Finance and Revitalization. The journey must be made on behalf of the driver, the price of the bare journey must not exceed the mileage scale and must be divided by the number of passengers. Finally, the driver must also pay part of the costs of the trip (fuel, tolls). If these three conditions are not met, the carpooling activity is considered a self-employed professional activity and must therefore be declared as such.

Parental leave may be doubled under certain conditions

Parental leave allows the parents of a child who is seriously ill, injured or disabled, who need a sustained presence, to stop or reduce their professional activity. From November 2021 onwards, the duration of the allowance for daily parental leave may be doubled from 310 days to 620 days under certain conditions. Deux décrets published in April 2022 and specified the modalities. In particular, the application for renewal must be made in respect of the same illness, disability, or accident of which the child was the victim, care for the initial application.

.

Leave a Comment