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Social charges


Gone Native

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This is my first message so I hope you will all bear with me.

Husband 65+, self employed, ( receives some private UK pensions but no state pension) pays cotisations.

Wife 65+, pensioner (UK state and private pensions), currently gets healthcare as "ayant droit" of husband.

So couple pay social charges on all income.

Can the wife switch to S1 for healthcare and thus save social charges on pension income?

If the husband ceases self employment and does not draw his French pension, can he also switch to S1 &  save social charges on pension income?

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I don't see how it could affect the cotisations paid by the husband if the wife asks for and gets an S1 from the UK. The cotisations are surely based on earnings/profits or however it works for self employed people and you didn't say that the wife was self employed too, so has no earnings to pay cotisations on.

No idea what would happen if he just stopped work and asked to piggy back onto his wife's S1 as both of your are over retirement age. Maybe there would be a query about this, I don't know, you can always ask the proper authorities.

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Wife should definitely switch to her S1 (should have really done it when claiming state pension) as in France each individual should only claim benefits as an "ayant droit" if they have no other healthcare insurance in their own right.

Secondly, if the husband ceases self employment and claims state pension directly from the UK, and requests his own S1 then neither of you should be liable to social charges on any pensions.

There is a special claim form for UK pensions when claiming from abroad

https://www.gov.uk/government/publications/guidance-on-claiming-a-state-pension-if-you-retire-abroad

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[quote user="tinabee"]Wife should definitely switch to her S1 (should have really done it when claiming state pension) as in France each individual should only claim benefits as an "ayant droit" if they have no other healthcare insurance in their own right.

Secondly, if the husband ceases self employment and claims state pension directly from the UK, and requests his own S1 then neither of you should be liable to social charges on any pensions.

There is a special claim form for UK pensions when claiming from abroad

https://www.gov.uk/government/publications/guidance-on-claiming-a-state-pension-if-you-retire-abroad[/quote]

TB, I don't wish to split hairs with you because you are always au courant with this kind of information.

However, I think that you do play contributions sociales for annuities (which in our case is exactly like a pension because we were self-employed)

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mint - I honestly don't know about annuities that do not have an employer contribution element, since I haven't had any experience of these (yet!), but I suspect you are right.

I am sure I have seen information indicating that pensions/annuities that are as a result of solely personal contributions are treated differently under French tax law than pensions/annuities that have had employer contributions.

As is normally the case, when a generalisation made there is always an exception for a specific case. Thanks for clarifying.

I suspect that declaring UK pensions after the relaxation of annuity rules in the UK from next year is going to get a whole lot more complicated [:'(]

 

 

 

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Tinabee, thanks for your input. Was not aware of the "ayant droit" requirement; at time of moving to France UK only covered healthcare for 12? months, so being "ayant droit" of working husband was appropriate.

French taxation/healthcare/pension arrangements are so complicated, they make the UK's look like a model of clarity!

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I don't think you have a choice here. You said that you didn't want to claim your

french pension, so that would imply that you had a right to a french

pension. As far as I am aware, if you claim a french pension then

that would be classed as the one that counts, even if it is minimal,

as you live in France and  you would pay the usual cotisations

on your french pension like everyone else.

This is

complicated and at over 65 questions may be asked if it isn't claimed. Why would the UK pay for your health care when France is suppose

to?

http://europa.eu/youreurope/citizens/health/when-living-abroad/health-insurance-cover/index_en.htm

Healthcare coverage in the country where you live

If you receive a pension from the country where you live,

you and your family are covered by that country's healthcare

insurance system — whether or not you are also receiving pensions

from other countries.

I have no idea what that margin thingy is at the top is about.

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