maude Posted October 21, 2004 Share Posted October 21, 2004 1)In simple words please,what are the calculations for contributions to the French system,for wife retired with E121,with hubby as named "dependent"aged 61?2)Does everyone retired or not have to pay the 0.5% social contribution. Manythanks "Maude" Link to comment Share on other sites More sharing options...
Val_2 Posted October 21, 2004 Share Posted October 21, 2004 We work and have to pay plenty here. Each person/family is individual and exact costs cannot be given as mutuelles are also tailored to suit. All I know is that retired friends get 50% paid automatically via the UK to the CPAM according to their lifetime contributions in the UK and then they pay privately for the other 50% cover which is well over £50 per month for the two of them. Link to comment Share on other sites More sharing options...
Miki Posted October 21, 2004 Share Posted October 21, 2004 Does everyone retired or not have to pay the 0.5% social contribution0.5% ? We pay 10% made up of 3 different taxes: 7.5% CGS ; 2% prelevement social and 0.5% CRDS.Maybe or maybe not, the retired don't pay all but there are many ways that people in residence get bashed by these weird taxes, that even the tax office say they are complicated.What baffles me, is that even if you earn insufficient to pay income tax and have reduced taxe habitation due to low income, you can still be walloped for these taxes. I have so many people ask me why but I don't know, perhaps someone (Les Lauriers or Peter Owen ?) may take some of the bewilderment out of this tax. Link to comment Share on other sites More sharing options...
Owen Posted October 21, 2004 Share Posted October 21, 2004 Hello, If you are covered via E121 you do not have to pay any more for your basic healthcare. However E121 will only cover a proportion of your healthcare costs (typically 70%) and it is for this reason why most people have a "police complémentaire' or "mutuelle" to cover the difference. Premiums will depend on the level of cover you want. But there are bags of providers so shop around. Your reference to the 0.5% is probably CRDS, which along with CSG is levied on most forms of income in France, irrespective of your age. Some sources of income are not subject to these deductions eg; UK government pensions, but most are.RegardsPeter Owen[email protected] Link to comment Share on other sites More sharing options...
LesLauriers Posted October 21, 2004 Share Posted October 21, 2004 In answer to your questions:1) As Peter Owen says your E121 covers you for the basic (or normal) health cover in France, if you did not have an E121 or E106 you would pay 8% of your RFI (Revenu fiscal de reference), which is basically your taxable income after allowances, over 6849€ per annum.2) Well yes and no, effectively the answer is yes - the French authorities deduct 0.5% for CRDS from your pension. No because there is a view that they are not allowed to under EU regulation 1408/71, if you are covered by an E106 or E121, if you are not covered by the E106 or E121, then CSG also applies. A wiser person than I may wish to add to this.Miki, the bad news is that the rates have now increased! 10.15% on investment and rental income in 2003 (retrospective increase) and 11% in 2004. 8% on 97% of earned income for 2004, previously applied to 95% of earned income. 7.1% on 95% of pension income for 2004, previously 6.7% on 95% of pension income.Why do we have these taxes? I believe it is smoke and mirrors, the French Government can honestly say that income tax is being reduced, and it is. However services still have to be paid for, as a result we have "social charges", these may feel like taxes More sharing options... IAN_S Posted October 22, 2004 Share Posted October 22, 2004 Neither of us is retired yet and our E106 runs out in January 2005.If our only income is rental on a UK property that we jointly own, is this value then split when considering individual contributions? Link to comment Share on other sites More sharing options... Owen Posted October 22, 2004 Share Posted October 22, 2004 Hello Ian,The contribution is per household not per person. So if you filled in a French tax return earlier this year you would have received an "avis d'impot" in the summer. Your contribution to cover the both of you will be 8% of the difference between €6849 and the "revenu fiscal de reference". if your contribution is claculated at no more than €31 per quarter it is waived completely. RegardsPeter Owen[email protected] Link to comment Share on other sites More sharing options... 2 weeks later... Kaz2 Posted November 3, 2004 Share Posted November 3, 2004 I'm going to be paying tax on a teacher pension in England - will this be included in the fiscal revenue amount you talk about? or will it just be money earned in France (micro bic)? Just wondered whether I'll be paying the 8% on my pension?Thanks for the advice. Link to comment Share on other sites More sharing options... Stocky Posted November 5, 2004 Share Posted November 5, 2004 Kaz, My understanding is that if you are getting a teacher's pension then it is paid by Local Government which means the tax is paid in the UK. This is confusing as when we finally retire to France I will be getting a pension from a Private Business and a second from Local Government. Where do I pay tax and declare my income? Link to comment Share on other sites More sharing options... Boiling a frog Posted November 5, 2004 Share Posted November 5, 2004 [quote]Kaz, My understanding is that if you are getting a teacher's pension then it is paid by Local Government which means the tax is paid in the UK. This is confusing as when we finally retire to France ...[/quote]You complete a French tax return showing your full income The very last paragraph for your UK Govt pension on which you pay tax in the UK and the section on income for your private pension You will only be taxed in France on your private pension and not on your UK govt pension You then need to tell the inland revenue UK that you are resident in France for taxation and they will instruct your private pension provider to pay your private pension gross There is a transition period when you may end up paying tax in the UK and France on your PP but you should eventually get a refund from the inland revenue Link to comment Share on other sites More sharing options... Owen Posted November 5, 2004 Share Posted November 5, 2004 Hello Kaz2, If you have a registered business in France, including a "micro bic", then one of the social contributions you make is for health so the 8% contribution, for those not working in France and affiliating purely on residence criteria, will not apply anyway in your case. You should still declare your teachers pension on your French tax return even though the UK will retain the right to tax it. The tax paid in the UK will be offset against any liability you have in France but for most people it means you will have no further tax to pay.RegardsPeter Owen[email protected] Link to comment Share on other sites More sharing options... 2 weeks later... Jomoon<P>landaise gardener<P><P>Les Landes<P> Posted November 16, 2004 Share Posted November 16, 2004 As Peter Owen says your E121 covers you for the basic (or normal) health cover in France, if you did not have an E121 or E106 you would pay 8% of your RFI (Revenu fiscal de reference), which is basically your taxable income after allowances, over 6849€ per annum. what happens to people who make less than this a year ? how do they manage on tax and medical cover ? thanks for the help. Link to comment Share on other sites More sharing options... Please sign in to comment You will be able to leave a comment after signing in Sign In Now Share More sharing options... Followers 0
IAN_S Posted October 22, 2004 Share Posted October 22, 2004 Neither of us is retired yet and our E106 runs out in January 2005.If our only income is rental on a UK property that we jointly own, is this value then split when considering individual contributions? Link to comment Share on other sites More sharing options...
Owen Posted October 22, 2004 Share Posted October 22, 2004 Hello Ian,The contribution is per household not per person. So if you filled in a French tax return earlier this year you would have received an "avis d'impot" in the summer. Your contribution to cover the both of you will be 8% of the difference between €6849 and the "revenu fiscal de reference". if your contribution is claculated at no more than €31 per quarter it is waived completely. RegardsPeter Owen[email protected] Link to comment Share on other sites More sharing options...
Kaz2 Posted November 3, 2004 Share Posted November 3, 2004 I'm going to be paying tax on a teacher pension in England - will this be included in the fiscal revenue amount you talk about? or will it just be money earned in France (micro bic)? Just wondered whether I'll be paying the 8% on my pension?Thanks for the advice. Link to comment Share on other sites More sharing options...
Stocky Posted November 5, 2004 Share Posted November 5, 2004 Kaz, My understanding is that if you are getting a teacher's pension then it is paid by Local Government which means the tax is paid in the UK. This is confusing as when we finally retire to France I will be getting a pension from a Private Business and a second from Local Government. Where do I pay tax and declare my income? Link to comment Share on other sites More sharing options...
Boiling a frog Posted November 5, 2004 Share Posted November 5, 2004 [quote]Kaz, My understanding is that if you are getting a teacher's pension then it is paid by Local Government which means the tax is paid in the UK. This is confusing as when we finally retire to France ...[/quote]You complete a French tax return showing your full income The very last paragraph for your UK Govt pension on which you pay tax in the UK and the section on income for your private pension You will only be taxed in France on your private pension and not on your UK govt pension You then need to tell the inland revenue UK that you are resident in France for taxation and they will instruct your private pension provider to pay your private pension gross There is a transition period when you may end up paying tax in the UK and France on your PP but you should eventually get a refund from the inland revenue Link to comment Share on other sites More sharing options...
Owen Posted November 5, 2004 Share Posted November 5, 2004 Hello Kaz2, If you have a registered business in France, including a "micro bic", then one of the social contributions you make is for health so the 8% contribution, for those not working in France and affiliating purely on residence criteria, will not apply anyway in your case. You should still declare your teachers pension on your French tax return even though the UK will retain the right to tax it. The tax paid in the UK will be offset against any liability you have in France but for most people it means you will have no further tax to pay.RegardsPeter Owen[email protected] Link to comment Share on other sites More sharing options...
Jomoon<P>landaise gardener<P><P>Les Landes<P> Posted November 16, 2004 Share Posted November 16, 2004 As Peter Owen says your E121 covers you for the basic (or normal) health cover in France, if you did not have an E121 or E106 you would pay 8% of your RFI (Revenu fiscal de reference), which is basically your taxable income after allowances, over 6849€ per annum. what happens to people who make less than this a year ? how do they manage on tax and medical cover ? thanks for the help. Link to comment Share on other sites More sharing options...
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