CMU costs

[StuartG]

I am trying to establish what the cost of CMU is likely to be for myself and my wife if we move to France.
Having read as much as I can find on this excellent site, plus some books, DSS literature etc, I am only a little further forward.
I am aware of the E106 facilities and have investigated the cost of Top Up insurance.
I have (I think) determined that CMU cost is 8% of net income in excess of c6400 but what constitutes net income - is it the amount on which income tax is payable?

Using a sample 40,000 occupational pension between a married couple, am I right in thinking that the calculation would be something like:

Gross Income 40,000
Tax Free Allowances 11,332 (2 personal allowances of 5666)
Taxable Income 28,668
CMU Allowance 6,400
Amount on which CMU due 22,268
CMU cost 1,781 per annum (8% of 22,268)

Can anyone help with any knowledge, or details of publications or websites that can help determine the cost

[LaBucherie]

In France, pensions receive favourable tax treatment. Your taxable income will therefore be lower than you expect. I'm not sure of the proportion, but there is a tax calculator on the French tax website ( http://www.impots.gouv.fr/ ) which should help.

Regards
David

[Jean L Ecossais]

Apiece of advice I was given is to complete a french tax return even if you pay no tax in France That way it makes life easier.If you try to register without the back up of a french tax return then you have to start proving to CPAM what your income is converting to euros showing you pay income tax in UK etc

[Owen]

There seem to be some confusion over the subject of CMU costs. The situation is not helped by the plethora of theresholds that are included in this legislation.

If your income after tax allowances is below a certain level you are entitled to apply for a free top up insurance. The income after tax allowances is the "revenu fiscal de referece" which appears on your "avis d'impot" which is received after you have filed in a French tax return. The thresholds are:

Single Person 6744 Euros

Couple 10136 Euros

3 persons 12144 Euros

4 persons 14160 Euros

These are NOT the thresholds on which any financial contribution is calculated. In this case there is a threshold of 6505 Euros but this is per HOUSEHOLD (le foyer fiscal) not per person. So a contribution would be based on 8% of the difference between 6505 and the "revenu fiscal de reference".

Clearly one could still pay a substantial amount but this can be mitigated. What you do not want to do is to have to pay any contribution based on final years salary and golden handshake. So if you can affiliate via E Form 106 then once this has expired any contribution may be based on pension only. You can also, at least for a time, take out private insurance. This may seem contradictory to another mail that I have posted reference the law on this matter but not necessarily. On arrival in France you are by definition not yet a permanent, stable resident so private insurance is OK. Once you are however then the law kicks in. But there is a loophole. Whilst there is a requirement for residents who have private insurance to convert to affiliation to CPAM, THERE IS NO TIME LIMIT LAID DOWN BY WhICH THIS SHOULD BE ACCOMPLISHED. CPAM sources suggest the delay should not be "unreasonable". I am not suggesting that this should mean avoiding the process for ever but there is scope to arrange your affairs accordingly.

Phew!

I have produced my own paper on "Affiliation to CPAM (sous critere de residence)" and will send a copy on request.

Peter Owen
pjowen@rivieramail.com