NI contributions E106 etc. etc.

[JON&CO]

Bonjour

I am so confused[8-)]  and hope some of you good people can help.  I am moving soon to Limousin region and have been looking at the health system.  In England I have not been paying NI for last 2 1/2 years as have been stay at home mum.  The husband has been self-employed for all his life except for 9 months 2 years ago.  He has paid hardly any NI in his life.  I think we will struggle to get E106 can we join French health system without one?  When moved we are setting up letting cottages for me to run and husband will be returning to England for short spells - so we won't be immediately making any social contributions to the French system.  Any assistance would be appreciated.

Andrea

JON&CO

[JON&CO]

Hi me again relpying to my own, have just read posts on item all about E106 from Emma, will follow advice on there and thanks.[:)]

Andrea

JON&CO

[Sunday Driver]

I'm confused too!

You say your husband has been self employed for all his life except for nine months two years ago and that he has hardly paid any National Insurance in his life.

According to HM Customs and Revenue, all self employed persons are liable for NI contributions for every week of self employment. If his earnings (after business expenses) were over £4,000, he would have been liable to pay at least Class 2 NI contributions and failure to do so could result in legal action being taken to recover the unpaid monies from him.

In terms of healthcare, if this is indeed the case, then neither of you will qualify for assistance through a form E106, and you'll have to pay your full contributions to the French healthcare system from day one, typically 8% of your taxable income (after allowances) over a 7,000 euro threshold. 

In terms of tax and social contributions, if both you and your husband have your principal home in France (and he seems like he will be present for more than 183 days in a tax year), then you will classified as tax resident in France and will be taxed on your worldwide income, ie, earnings from your letting business and his employment.  You will also be liable to pay the full range of social contributions (cotisations).  Other forum members in similar self employed situations in France have reported cotisations amounting to around 3,000 euros per annum.

I suggest you have a look at the Earning a Living in France forum as well...... 

[Truffleman]

Advice please.
I am 63, retired, resident in UK and in receipt of a UK company pension, but thinking of re-locating to France. I spoke to Inland Revenue, Centre for Non-Residents who told me that although my NI contributions were fully paid up I was not entitled to a E106 as I had not made any contributions in the past two years. If I wanted to move to France I would have to take out private medical insurance.

 I thought that private insurance was illegal in France.Is this correct? If so I guess that I'll have to wait a couple of years and pick up my E121.

Truffleman

[BJSLIV]

 I would have to take out private medical insurance

I would qssume that they mean that you would have to join the French system as a contributor, based on your current income.

I think you would also miss out on the credited NI contributions given to a non-working man aged 60 to 65. That might mean another £350 a year to find if you haven't got a 100% contribution record, and you are bothered about your old age pension.

[Truffleman]

Thanks for the reply, but that is my point, all my NI contributions were paid up to the maximum and I had the payment holiday from age 60 to 65 so that I will/should get the maximum State pension at 65. Thus as I have no contributions in the last three years it appears I am unable to get a E106.

As a contributor to the French system for a couple of years I would have to pay 8% of my income after the allowance of about 600 euros.

Alternatively as my wife is in receipt of her State pension, as she is over 60, I believe I could get her to get her E121 and I become her dependant with nothing to pay. Are my assumptions correct?

I would of course have to pay my French Taxes on my income, savings, etc

Very confusing.

[BJSLIV]

You don't have a problem then.

You will qualify via your wife with no need to pay any 8%. You will still miss out on your NI credits though If you have a full house already it won't really matter.

 Enjoy your move to France!

 

[Quillan]

In reply to the first poster you can enter the system without a E106, we did. You will require all the normal paperwork plus the standard letter from the Dept of Works and Pensions telling you that you can't have a E106 and gives you the reasons why you can't get one. Amongst those reasons is the one that applies to you. What I mean is there are several reasons and one or more may apply to you and you will be able to identify which one(s) apply when you read them. Hope that makes sense. My reason was that I had not made any contribution in the previous two years and neither had my wife. My wife and I had paid a class 3 stamp which only goes towards your pension which we didn't know at the time (I thought it covered everything). So along with the standard letter I recieved I had to write a letter in French explaining why I had been turned down which is the reason I have already stated. I got my Atistation in 4 weeks and by Carte Vital in 9.

As you husband has not paid any NI I would suggest you ask Works and Pensions for a pension forcast for yourself as you could end up with a greatly reduced pension later.

To the other question asked about Private Insurance. They do exist in France and are available only to those that cannot gain entry to the state system. To get private insurance you will require a letter from CPAM refusing you entry.