CMU costs

[StuartG]

As part of my research into the strong possibility of our moving to France, the calculation of CMU costs even though they may be deferred by E form cover was one area that was not immediately obvious from books or forum content.

This resulted in my starting this string and I thank those of you who have inputted particularly David at La Boucherie and Peter Owen (for his forum message dated 20/11/02 under Conferences Health Issues -Social Security vs. Private Healthcare).

Along with other information that I had found, I think that I have now satisfied my curiosity unless you tell me otherwise. It may be helpful to others if I summarise (without responsibility) my resultant beliefs:



CMU costs are calculated at 8% of income (after tax) and after a further allowance of 6505 per Household (not per individual)

To help you to calculate tax liability, a French Government Website contains a simple model (you can use this model anonymously) based, however, on tax year 2000-2001 so dont expect it to be accurate for the current tax year. You do need to input your details in French Francs although the resultant tax is also quoted in Euros. The web address is: http://www2.finances.gouv.fr/calcul_impot/2001/forme.htm

A simple, hypothetical, example would be that, on a Gross Income of say 40000 and a tax liability of say 13495 there is a net income after tax of 26505. Taking off the CMU allowance of 6505, this leaves 20000 on which CMU would be payable at 8% resulting in a CMU cost of 1600 per annum.

Whatever government cover you enjoy, whether it be from CMU or by way of E106/E121 only a proportion of costs are covered and top-up insurance would appear to be a very wise investment

StuartG

[Owen]

Hello,

I am not a tax expert but you have calculated this incorrectly.

First of all you should note that the tax year in France runs from 1 January - 31 January. Returns should be filed by around mid March and your tax assessment "avis d'impot" is received usually around August.. As I said in my previous mail it is the figure "revenu fiscal de reference" on which any contribution is based.

The "revenu fiscal de reference" is the figure arrived at by the tax authorities on which any tax is calculated. Certain standard allowances are deducted from gross revenue and individuals may enjoy other special allowances depending on their circumstances. But this figure does not necessarily mean you have any tax to pay. This is particularly relevant if you have paid tax already on income, say in the UK, with whom France has a double taxation agreement.

Finally you need to look at the timing of your affiliation. If you applied for example in Feb 2003, the contribution would not be based on the income 1 Jan - 31 Jan 2002 because you have no "avis d'impot" and therefore no "revenu fiscal de reference" in respect of that year. It would be based on financial year 1 Jan - 31 Jan 2001.

Top up innsurance. It is a fundamental principle of healthcare funding in France that a contribution is made by the individual in addition to any obligatory contributions. It is not often that treatment will be covered 100%. There is a whole range of these on the market and wading through them is another minefield!!

Peter Owen
pjowen@rivieramail.com

[LaBucherie]

LAST EDITED ON 23-Nov-02 AT 11:20 AM (GMT)

The form for 2001 tax year (calculated 2002) does use the euro. It's possible that you used the one which would have been completed in 2001 for the tax year 2000.

I entered a pension of 40000 for a married couple. The tax due came to 3303 and the "Revenu fiscal de rfrence" (the taxable income) 29472. The CMU cotisations would be 8% of 22967 (29472 minus 6505) i.e. 1837.

I hope I've got this right, but please don't hold me responsible if it's wrong!

Regards
David

[StuartG]

Thanks again guys - much clearer now

The basic error in my posted calculation was using the term 'gross income' instead of 'Revenue fiscal de reference' which is, indeed, clearly shown in the tax calculation



Stuart