Another Child Benefit query!

[Fiona]

Hi - sorry if this subject has been covered so much but I can't find a thread which covers our specific scenario.  We are planning to move to France in early 2009.  However, we are planning to rent for a year (renting out our house in UK), to see how we settle etc before we buy.  The children (6 and 4) obviously will go to school in France.  However we have no immediate plans to work - we want to take a bit of sabbatical and get settled before setting up a business.  I contract in IT and we have been saving like mad so we can afford to live for a year without working if needs be.  My OH is self employed in the building trade but hasn't worked in the UK since last summer as he has been renovating our house ready to rent out and looking after the kids.  So my question is this; if we are residing in France for a year is that considered a permanent move, and would we be entitled to child benefit even if we are not working?  I always thought it was the one benefit that was paid regardless of work status and NI contributions but a lot of the posts here seem to cast doubt on that.  Or would be better to just say nothing to the benefits agency in UK and continue claiming in the UK for the year we are renting, bearing in mind we will still have a UK address. 

thanks for your help folks

Fi

[Sunday Driver]

If you are moving to France and intend staying here for more than three months then you will be classed as being resident.  If you are not working, then as an 'inactive', you will have to have sufficient resources not to become a burden on the state social security system and have made arrangements for healthcare insurance.  As mentioned, the latter condition will be met if you are able to obtain a form E106 which will entitle you to register for the state assurance maladie.

You will also be regarded as being tax resident here, so you will have to declare the UK rental income as well as the interest from your savings. The rental will remain taxable in the UK rather than in France, but the savings interest will be subject to French tax (although probably nothing to pay) as well as social charges.

 

[Fiona]

Would savings in the bank be considered sufficient income?  i.e. if we could show that we had x euros in our account to live off - would that be enough?  As for the E106, I did check a while back and was told I had made sufficient NI contributions to quality for one - my partner on the other hand hadn't as he has not worked much this current tax year.  However, think we will overcome that as we plan to get married before we move (how romantic a proposal eh! "my darling, will you do me the great honour of being my wife so that I can be entitled to medical care in France"!) Only kidding - we have been planning to get hitched for a while now, but in all seriousness I think it will be the only way he will be covered.  As for the child benefit query - will we be entitled to claim in France if not working for a while?

thanks

[Fiona]

Hi there, would be great if anyone could help. Still not clear on whether child benefit can be claimed in France if we are not working ?? 

Thank you

[Clair]

It's not an area I'm familiar with and several posters have a better grip on this than I have, but you could start here.

[Busy Bee]

As far as I am aware, Allocations Familial are available to everyone RESIDENT in France.  However, if your situation is at all unsual, both parents not working and not paying social charges anywhere, is classed as unusual, then it becomes complicated - this is probably why no one has replied.

I would say that you are probably not entitled to UK Child Benefit, whether or not the CAF will allocate you anything is another matter.  There are rumours afoot that a similar situation to the health issues is coming into place, whereby if you can afford to choose not to work at all, you can afford to look after yourself totally.  This is not confirmed, I am merely repeating rumours!

In your shoes, I would assume nothing will be forthcoming, ensure the UK Child Benefit authorites give you a form stating that you are not eligible for CB and WHY, then make a claim once you are resident in France.  Then if you do find yourselves awarded Allocations Familial, go out and treat yourselves.  Not only will the money be handy, having the relevant paperwork, with a Quotient Familial, will smooth your way over a number of child related matters.

Good luck and have a great adventure, my children aged 4 and nearly 2 were fortunate to be born here and it's a great life, just a tiny bit tiresome on the administrative side.[:-))]

[Fiona]

Thanks folks,  must admit though I am slightly concerned by what you said, BusyBee, I really hope it doesn't go the same way as the medical cover.  I am surprised that it seems our situation is considered unusual.  I thought it was fairly common for families to move but not necessarily have work lined up right from the start - I must be wrong though.  And it is infuriating as it's not the case that we can afford not to work - it's just that I have worked bloomin hard this last two years contracting in IT to save up a nest egg so we don't have to worry about working straight away.  I always read that you should move with enough savings to tide you over for up to a year potentially without working - so that's what we are aiming to do.  Have never touched my child benefit - it goes into savings and am trying to keep it so they have a little "college fund" when they grow up, would hope to be able to carry this on. 

Anyway looks like my other half will have to get registered straight away so that we can start contributing!

Fi xx

[Fiona]

...and meant to say thanks BusyBee, we are very much looking forward to it - hope it all works out!

[Busy Bee]

Hi Fi,

What you are doing is not that unusual, it's just that it does not fit into a nice little box from a state administrative view, ie dad works full time, mum works part time or full time, both children in school or organised childcare.  It's just one of France's little quirks, you get used to it - you have to or it will drive you up the wall.  You can't change it, so don't get stressed about it, save your energy for dealing with it and change the things that are worth changing - like trying a better life here in France.

Don't worry abouth the rumours too much either, just be aware of them and ensure you have plan B available just in case - which is what you seem to be doing.

BusyBee