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Health cover via chambre d'hote and 2 furnished holiday apartment rentals


Scooter
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Hi

We have two apartments that we rent out for holiday rentals all year round, they are furnished.  Started this in June 06

In addition from Jan this year we have a chambre d'hote with 5 bedrooms that we have registered at our marie.

We do not understand which tax system we will be under for all of this or whether we will be entitled to health cover.

Can anyone advise us on what we would probably have to pay based on 10,000 Euros income from above in %/value terms.

tax

social charges

health charges

We have no idea what anything is going to cost us at all and are swamped reading websites etc.  WE want to do everything right but are getting really anxious.

Thanks

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"We do not understand which tax system we will be under for all of this or whether we will be entitled to health cover."

 

I don't know the full "ins and outs" of your situation but if you are earning money in France you do have to declare all income earned in France to the French tax authorities.

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Thanks.  I am happy to do that I am just getting confused regarding which system to use.

People tell me that if we just had apartments that we rented it would be different to having a chambre d'hote as well.

Plus with one no health care, with another some say some health care???

Carole

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Scooter

The tax regime is immaterial to your health care provision.  As it stands you declare the unearned income from your appartments and chambre d'hote on your tax return and pay the tax and sociale charges,  it does not allow you or entitle you to any healthcare entitlement, that only comes if your register as a business which you probably will need to.  This was discussed a lot recently do a search on tax regime or look here for a start. http://www.completefrance.com/cs/forums/1109074/ShowPost.aspx

 

EDIT  Hang on Scooter I just noticed your other posts, not writing a book are you?  Anyway, you cannot be working in the UK and have a business in France, you need to sort out where you work and live before trying to get healthcare by yet another route.

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Hi

As I understand it you could register either or both as your main income.  If you work at something and it is your main income it should be registered as a professional business and on that income you are charged social, health etc.  The problem you have is that at present it is not a percentage of the income but a flat rate which starts at around 3.5k per year.  There are indications that this will change so that your charges reflect a percentage of income but currently this is not the case.  

You need to talk to an accountant ASAP.

Panda

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Thanks - this clarifies a lot - it is what I thought in terms of social and tax - the problem we have is

a)  I am an early retiree and my E106 has run out - I run the apartments and chambre d'hote in France

b) My wife works for a UK company, partly in UK and partly via company Intranet in France

At the moment neither of us have French health cover and dont know what to do - we could pay 100% private but if we have to register the business and then pay social health charges that would be daft.

Going to get advice asap - thanks again.

 

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Hello

that puts a compltely different spin on things, if your wife works then neither the B&B or the appartments are your main income so you can continue to run them as a side line and simply declare them on your tax return as unearned income.  The important thing is how your wifes income is being declared in France, is she paying NI as if so you should not need to pay into the French system as well AFAIK.  Many people are set up like this with one partner commuting.

Panda

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It isn't either of our main income unfortunately so dont know where that leaves us.

One of us has a pension (around 10,000 Euros a year) - early retirement

The other works full time for UK company.

We are setting this business up so that my wife can give up work in the UK and we can top up my pension to perhaps double.

It is this interim period that is the pain and we haven't a clue what to do - thinking of using Siddalls initially - has anyone got experience of them?

Ta

 

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My own inclination would be to work with a French accountant.  I am sure that Siddalls are very good at what they do, but you need to know the ins and outs of the system here. One bit of wrong info' about business registration; where your wife should pay her "cotis" etc, could give you a whole heap of trouble in the future, imo.

Your situation is so complex that professional advice is probably your only option, if you are to get it right, at the very least in the beginning whilst you get your ducks in a row.

There is one private health plan which I know of which is cancellable at short notice and designed specifically for those who are in "limbo" at the moment.  PM me if you would like the details.

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Thanks Panda

She is/was paying NI but applied for a working E106 to be told not entitled and will have to come out of NI  and to write to French SS to join.

She phoned them, got a personal email of the lady to write to - got a read receipt all early December but has heard nothing.  In the meantime she is continuing to pay NI becuase what else can she do.  The problem they say is that she does not do 100% of her work in the UK - even though the only work in France is for UK via intranet - no trading or anything with French.  This will mean that her company have to contribute to French SS and they made it clear when she came out here to live that they wouldn't do that so could mean the end of work which would be a nightmare.

Thanks again.

Scooter

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Hello

Well actually I had a similar conversation about my contributions 4 years ago, I worked in exactly the same way paying NI and tax in the UK for a while when I first came here and like your wife because I spent more time in France than the UK I could not continue to pay into the UK system.  In the end all of my tax and NI was returned to me (which was nice).  I then set myself up as a self employed micro-bic and to this day still work in this way.  I work under a self employed contract with my original employer although I have also now taken the odd contract with other companies.

It may well be worth you exploring this route if she does want to continue to work, it will be down to whether her employers will employ her as a contractor I guess although there is little downside for them IMHO.

In fact our situations are VERY similar as I too have side lines of appartment rental and did have a gite both of which are declared as a non professional businesses and so do not attract health charges etc.

Panda

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