Complex tax problem, probably a simple answer?

[cooperlola]

My profuse appologies - I got the stamps mix up!  But obviously Long Benton will know better than I.

The critical thing about the E106 (or its new equivalent) is that it isn't British, it's European.  The retirement version (as opposed to the one ANO has for workers employed in the UK but living abroad) always ends on 6th Jan (I have absolutely no idea why).  It never lasts for more than 18 month for the self employed or 30 for employees.  Thus the 6th July date is merely the count-back which gives you the optimum cover - which can be critical in building up your 5 years' stable residence in France.

As I say, this is just what I know from all the people I've spoken to on this subject and believe me that's a lot of people over the last two or three years!  It's not based on any formula I've been privvy to but it invariably works out to be pretty much correct.

[Daft Doctor]

Thanks Coops, I have the number so will ring them tomorrow and put some scenarios to them and see what they say.

[PaulT]

[quote user="Russethouse"] 
 I think I'm right in saying that women now or in the very near future will not get their pension at 60 but a little older....
[/quote]

Perhaps I will get my wife to answer this - no better not, the language would not be pleasant.....

She is of an age where she now will not get her pension until she is 65 - having worked full time since she was 16 and paying full stamp.

Welcome to equality girls

Paul 

[AnOther]

You can calculate your retirement date here:

http://pensions.direct.gov.uk/en/state-pension-age-calculator/home.asp

When male and female ages have reached parity reckon on a rapid increase to 67 (or more) for both [:(]

[Pickles]

Currently, the state retirement age for anyone - male or female - who was born on or after 6th April 1960 will be your 66th birthday.

As AnOther points out, it is possible that this qualifying birth date may be moved to 1959 or earlier, and the progression to a retirement age of 67 or 68 soon seems rather inevitable. I suspect that the result will be that increasing numbers will not live to see their pension ...

Regards

Pickles

[parsnips]

[quote user="Pickles"]Currently, the state retirement age for anyone - male or female - who was born on or after 6th April 1960 will be your 66th birthday.

As AnOther points out, it is possible that this qualifying birth date may be moved to 1959 or earlier, and the progression to a retirement age of 67 or 68 soon seems rather inevitable. I suspect that the result will be that increasing numbers will not live to see their pension ...

Regards

Pickles

[/quote]

Hi,

    Given that a number of people will inevitably die between the ages of 65 and 66, and 66 and 67 and so on, your suspicion is an absolute certainty.

[Daft Doctor]

Hi, in order to tie up loose ends of this thread (ha!) and perhaps help others interested in the S1(E106) for self-employment retirees issues, I thought I would feed back after my phone call to the Overseas Healthcare Team at DWP in Newcastle (0191 2181999).

Firstly, for entitlement to healthcare overseas, only Class 1 & 2 NIC matter, so my query about Class 4 NIC is easily answered. Secondly, in the case of self-employed people retiring and moving to France, as I suspected, the maximum entitlement to an S1(E106) is 21 months. This assumes a move to France on 6th April, having just made a full years Class 2 NIC in the tax year just ending. The S1 would be valid until 6th January in the tax year following that of the move. As example, full Class 2's paid in tax year 2011-12, move to France 6th April 2012, S1 valid until 6th January 2014.

The system certainly discriminates against the self employed, as Class 2 contributions can only be paid weekly (or quarterly) in arrears, and a full years contributions (only amounting to £122.40) must be paid for that tax year to be a qualifying one for ongoing S1 cover. The employed however can easily pay enough Class 1 NIC in the first 3 months of a tax year for it to become qualifying, hence they can get an extra 9 months coverage from their S1(E106). Doesn't seem fair.

[AnOther]

[quote user="Daft Doctor"]The system certainly discriminates against the self employed....... Doesn't seem fair.[/quote]

What about the discrimination and fairness of employees paying 11% of

salary but the self employed a mere £2.40/wk. On a comparative basis it seems like a pretty reasonable shake of the stick to me [;-)]

http://www.hmrc.gov.uk/rates/nic.htm

[Daft Doctor]

With respect ANO you are forgetting about the Class 4 NIC we self-employed also pay, the current rates being 8% of profit between £5,715 and £43,875 plus 1% on anything above that with no upper earnings limits.  Class 2's are on top.  That's why it doesn't seem that fair that the employed can pay enough Class 1's in 3/12 to get all that extra healthcare entitlement!  

[PaulT]

[quote user="parsnips"][quote user="Pickles"]Currently, the state retirement age for anyone - male or female - who was born on or after 6th April 1960 will be your 66th birthday.
As AnOther points out, it is possible that this qualifying birth date may be moved to 1959 or earlier, and the progression to a retirement age of 67 or 68 soon seems rather inevitable. I suspect that the result will be that increasing numbers will not live to see their pension ...

Regards
Pickles
[/quote]

Hi,
    Given that a number of people will inevitably die between the ages of 65 and 66, and 66 and 67 and so on, your suspicion is an absolute certainty.
[/quote]

Some do not make it to 65 now.

But if you look at average life expectancy it is increasing all the time.

Paul

[AnOther]

Life expectancy is improving but with so many facing having to work till they drop that may slow or even be reversed [:(]

Goverments ideal of course is that we all drop dead on the day we reach state pension age, Soylent Green doesn't seem so far fetched after all [:'(]