UK citizen in france for 1 year: social security advice needed!

[ulrich83]

I would appreciate some sound advice.

I am a U.K resident living in France and working part-time. During my days off I am studying French. I plan to remain in France for one year, and then return to the U.K. I have recently started my job and do not yet have a payslip to refer to.

I am aware that all French residents are obliged to pay social security contributions, which can can total up to 29% of your earnings (I understand it is broken into various categories, e.g. pensions, health-care etc). My first question is whether this percentage is lower for part-time workers?

My second query concerns social security reimbursement. My employer has advised me that - because I am staying in France for one year only - I will be entitled to some compensation on social security contributions. In particular, I was told to expect a refund of my contributions towards a state pension. This point has been echoed by other people I have met in recent weeks, yet nobody seems certain of the facts.

I would be very grateful of any clarification on these points. I would like to know exactly what, if anything, I am entitled to when I leave France - and whether I have to do any paperwork in advance.

Your thoughts and advice appreciated
Ulrich

[Bevdeforges]

Hi, and welcome to the forum.

In answer to your first question, no the social security contributions are not lower for part-time workers - certainly not in percentage terms.

OK, the reimbursement issue is a bit trickier. It used to be that your retirement contributions would be refunded when you leave a country if you had not stayed long enough to qualify into the pension system, but the EU kind of changed that situation. Within the EU, your years worked anywhere within the EU will count toward your eventual pension if you ultimately retire in an EU country. So it's actually not a bad idea to leave your pension contributions in place so you don't "lose" the year you were away - in terms of having worked enough years to qualify for a national pension.

I'm not sure if the reimbursement option is available these days, but in any case, it's probably far cheaper to leave your retirement contribution in place than to have to "buy back" a year or two when you are approaching retirement age, should you fall short.
Cheers,
Bev

[giantpanda]

Originally Posted by ulrich83

I would appreciate some sound advice.

I am a U.K resident living in France and working part-time. During my days off I am studying French. I plan to remain in France for one year, and then return to the U.K. I have recently started my job and do not yet have a payslip to refer to.

I am aware that all French residents are obliged to pay social security contributions, which can can total up to 29% of your earnings (I understand it is broken into various categories, e.g. pensions, health-care etc). My first question is whether this percentage is lower for part-time workers?

My second query concerns social security reimbursement. My employer has advised me that - because I am staying in France for one year only - I will be entitled to some compensation on social security contributions. In particular, I was told to expect a refund of my contributions towards a state pension. This point has been echoed by other people I have met in recent weeks, yet nobody seems certain of the facts.

I would be very grateful of any clarification on these points. I would like to know exactly what, if anything, I am entitled to when I leave France - and whether I have to do any paperwork in advance.

Your thoughts and advice appreciated
Ulrich

Hi!

Did you work in GB?

Then you can get an E106, and with that gets you into the Assurance Maladie.

Yours,

giantpanda

PS. If you work part-time same contributions as full time ( except for those who work full time a,d are above certain limits )
You can make a test here - NB. This is appromitif, because different branch.

Simulation paie - calcul paie, gestion de paie - fiche paie - externalisation paie : bulletin de paye expliqué

[ulrich83]

Thanks for your reply. Yes I worked full-time in the UK for 2 years.

What is Assurance Maladie - is it health insurance? What are the benefits of this arrangement? Where can I get the E106 - is it downloadable?

And, in your opinion, is 29% an accurate figure for social security deductions? Is there any reason why it would be a lot more than this? For example, in the UK we have different tax bands and sometimes people are 'emergency taxed' at a far higher rate if they are new to the country - does this happen in France?

Thank you for the link, but I am unsure how to use the website.

Sorry to bombard you with questions!
Many thanks for your time spent on answers

Ulrich

[ulrich83]

Hello and thankyou for your prompt reply!

So, to sum up, there is no special arrangements for people who are living and working in France for a temporary period (i.e. 6 - 12 months). Regardless of the duration of time spent in France, I can expect to pay the same social security contributions as all other residents and can expect no reimbursements at the end of my stay?

Further - with regards to Income Tax - if I leave france before the end of of the 2009 tax year (as is very likely to be the case), what will I be expected to do? My current employment contract is part-time and temporary. My gross earnings are relatively small at 600Euros per month, after social security. Would my income tax rate be based on my 'brut' salary, or would it be measured on my NET salary, after social security?

Again, I have been told by other people that no income tax is taken if you stay in France for less than 12months. Is this true?

Thanks again for all your advice, it is so useful! Ulrich

[giantpanda]

Originally Posted by ulrich83

What is Assurance Maladie - is it health insurance? What are the benefits of this arrangement? Where can I get the E106 - is it downloadable?



Ulrich

Hi!

Assurance Maladie = Health Insurance = in this case CMU ( couverture Maladie Universelle

E106 ( not a form you can download ) = ask Newcastle.

Yours,

giantpanda

NB. If you are subject to another compulsory Health Insurance scheme in France, then the E106 is not valid.

[Bevdeforges]

Originally Posted by ulrich83

So, to sum up, there is no special arrangements for people who are living and working in France for a temporary period (i.e. 6 - 12 months). Regardless of the duration of time spent in France, I can expect to pay the same social security contributions as all other residents and can expect no reimbursements at the end of my stay?

Further - with regards to Income Tax - if I leave france before the end of of the 2009 tax year (as is very likely to be the case), what will I be expected to do? My current employment contract is part-time and temporary. My gross earnings are relatively small at 600Euros per month, after social security. Would my income tax rate be based on my 'brut' salary, or would it be measured on my NET salary, after social security?

Again, I have been told by other people that no income tax is taken if you stay in France for less than 12months. Is this true?

OK, pretty much so - though the 29% rate is a tad on the high side IMO. Depends if your employer is deducting for a "mutuelle" (top-up health insurance) and the cost of that. For our company, the employee deductions run about 26% including the mutuelle, about 24% if you exclude that.

Do keep track of the dates of your employment here, and hang onto your social security card (and number). You will need it to claim your time and contributions when you reach retirement age.

Now, in France there is NO deduction from your paycheck made for income taxes. The figure you've been cited is exclusively cotisations (social insurances). Income taxes are on a calendar year basis, so you file a return after the end of the year for any year in which you were resident in France (usually means that you lived here for 183 days or more). However, if you move back to the UK part way through the year, I believe there is a way you can file for just the period in which you were resident in France. You might have to check with the local tax inspector on this.

OTOH, the "taxable income" cited on your pay slip is your gross salary less most of your cotisations, so you aren't taxed on what you are paying in for social benefits (and you will be entitled to health care benefits while you are living and working in France). Also, the way income taxes work in France, chances are you won't owe much (or any) tax on a low, part-time income unless you've got significant income on the side.
Cheers,
Bev

[giantpanda]

[quote=
OTOH, the "taxable income" cited on your pay slip is your gross salary less most of your cotisations, so you aren't taxed on what you are paying in for social benefits (and you will be entitled to health care benefits while you are living and working in France). Also, the way income taxes work in France, chances are you won't owe much (or any) tax on a low, part-time income unless you've got significant income on the side.
Cheers,
Bev[/QUOTE]

Hi!

On the taxable income ( for wages and salaries ) there is a 10% allowance.

Yours,

giantpanda