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Discussion Starter · #1 ·
I have recently moved to France with my husband and young child. We both work for UK companies and had applied for an S1 form. Have just received letter from HMRC saying that we don't qualify as most of the work is done in France using IT....so now what do I do?

To register at CPAM I need an S1 form...HMRC advised me to just take the letter and CPAM will sort it - but I'm not all that confident it is as easy as that.

Would I be better to resign from the UK company and set myself up as an AE and invoice them as a client. That way I would enter the french system, get a social security number and a carte vitale. I would pay social charges through that and my husband and child could be my ayant droits so we are all covered.

I then can get top up insurance as we will have a social security number.

I can also do all of this online which seems easier than having to wait for hours at CPAM.

Can anyone see a fundamental flaw in my plan or do you think this is the right thing to do??

Many thanks
 

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You are probably both going to have to talk to your employer(s) to see if they are willing to continue the same relationship on a contract basis. Basically, if you're paying French cotisations, then your employer in the UK should not be withholding UK taxes or social insurances from whatever they are currently paying you.

If both you and your husband are working, then both of you need to be registered with CPAM (and the other cotisation agencies). AE is one option, certainly, but you need to be aware of the limits of the AE system.

Talk to your UK employer and see what they are willing to do. And then try taking the letter into CPAM. Sometimes they surprise you and actually can sort this kind of thing out. (In France you occasionally have to suck it up and spend a few hours at the office dealing with real live bureaucrats.) If CPAM can't help you, then look into the AE route - or some other form of business entity.
Cheers,
Bev
 

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Discussion Starter · #3 ·
Thanks Bev

I'm going to go to CPAM tomorrow and see what they say. I've found out that there is an office in my little town so I'm hoping they won't be very busy!

In theory my UK employer would be open to the idea of me contracting but they are only a small company so don't really know what it would entail. I guess that may be plan b!
 

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As Bev says, there are potential problems with the AE scheme. Firsly, there is a maximum gross income you can earn - around 20k €. It is a simple scheme with simple accounting, viz no deductions for expenses. Creative accounting is a possibility but the limited earnings may not be sufficient for your needs.

Secondly you have to declare what you are going to "do" as an AE - eg "services à la personne" - you can't just "be" an AE. Some jobs are not permitted. More research needed for this option.
 

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I am in the process of setting up as AE for me and hubby.
The maximum gross income for services is 32keuros. But they are other options as well. There is I beleive the EIRL and other status like micro entreprise.

It all depends on what you make and what you do. AE has some limitations with some professions but it overall covers a lot of professions.

With AE: you pay a % of your GROSS income as taxes/charges/cotisations. and you are covered kind of like an employee. No income, no taxes.
But you also have no deductions for bus expenses etc..

with other systems, you have monthly/quaterly charges no matter what but it might end up being better for you, depending on your set up and field of activity.

there is the APCE website for good advice if you speak decent french:
Structures unipersonnelles - APCE, agence pour la création d'entreprises, création d'entreprise, créer sa société,l'auto-entrepreneur, autoentrepreneur, auto-entrepreneur, auto entrepreneur, lautoentrepreneur, reprendre une entreprise, aides à  la cr
 

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I have recently moved to France with my husband and young child. We both work for UK companies and had applied for an S1 form. Have just received letter from HMRC saying that we don't qualify as most of the work is done in France using IT....so now what do I do?
I think you might be talking to the wrong UK office HMRC is the tax man. I got all my S1 stuff and EHIC from the Overseas Healthcare Unit at Dept of Work & Pensions. You can find them via direct.gov.uk

Cheers
 

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Discussion Starter · #7 ·
Thanks for all of the advice.

Went to CPAM and they were very helpful and friendly but it turns out we need to go to RSI and they will set us up...

rynd2it - I did try overseas team first and they told me to contact HMRC as I needed a workers S1 (which HMRC subsequently don't think I qualify as work is done via internet and not physically in UK).

We obviously don't fit neatly into a little box so keep getting passed around. Oh well I'm sure we will get there in the end! ....we will get there in the end won't we?!!!:)
 
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