Tax and healthcare for over 60s

[Llantony]

We hope to move over in the next year when my husband retires and gets a very modest teacher's pension.  That will be taxed in the UK before he gets it.  Will it still be necessary to complete a French tax return for my £40 a week state pension?

Also I assume we'll need to pay for a mutuelle? for health care but I did read somewhere that over 60s don't have to pay, so I'm confused!

[marina]

If you are French resident you have to make a tax return even if you have no tax to pay. In fact it is to your advantage to do so.

Once you are eligible for E121 form you will receive, at no extra charge, the same health care that any other French resident past state retirement age would get. That means you would have to take out top up insurance to be fully covered. However if your income is very low you may be entitled to a free top up. Most over 60s have to contribute, at least until they qualify for E121.

[Patf]

Very low income - on a recent thread the figure of 10768 euros p.a . was quoted, ie about £7000. Below that evidently you don't have to contribute and topup is paid for. You still need your E121. Tax - all income must be declared, as Marina says.

[Llantony]

Thanks for the replies.  Am I correct in thinking that the French tax treats us as 1 household?  That way if we divide our income in half, it may well be less than £7000 each.  I will receive my (small) UK state pension any day now as I have reached 60 but my husband won't get his state pension until 2013.

An English friend was in France for several years and never joined the French health system or re-registered her ancient car.  As her income was very low, she'd probably have gained by opting in and then wouldn't have had to pay for treatment when she broke her ankle.  Sadly she has returned to the UK, missing family etc. but partly because her very low income made life difficult, even in a tiny 1 bedroom house.

 

[Sunday Driver]

You are correct in what you say about being taxed as a household.  If your gross joint income is less than about 20,000€, you won't pay any income tax.  Regarding the free mutuelle, it's your joint income after allowances (revenu fiscale de reference) which determines whether you qualify or not.

Your UK pension will entitle you to a form E121 which means you will also be exempt from the 0,5% CRDS social charge on your pensions, but not (unfortunately) on any savings income.

If you are over 60 and your RFR is below 11,379€ then you may qualify for exemption from tax d'habitation/TV licence.  Once you reach age 70, you also qualify for a discount on your tax fonciere.

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