Hi
I'm a little bit confused. I have been registered as an auto entrepreneur, have siret number and been paying the micro-social charge to USSAF as profession liberales.
I am charged 23.5% of my income. I'm assuming this contributes via RSI also.
What I would like to know is what the income tax rate is.
Regards
Tracy I pay my IR monthly with my AE and the amount is credited on my Avis d'imposition against what our household tax bill will be. That is the good thing about AE you can work it into the normal family tax situation and like andrew we normally get a refund.
Yes, that's probably right Gary. I'm considered as an artisan so I suppose that is why I pay to RSI. Takes a long time to piece together the puzzle, especially as I am very lazy when it comes to reading paperwork 'n stuff ;-)
I've just checked on one of my avis d'impôts and it states quite clearly
Montant de votre impôt : 0€
Somme remboursée : xxx€
I can only speak from experience but who knows what happens to others...!
I was over the limit, that is why I had to change - joke is, still don't earn enough to pay income tax!
In my last year as an AE I paid 6.000€ (you were at the limit then, Tracy). This year I'm paying 12.000€ to the RSI but earn the same in-hand. But I got a tax rebate - didn't pay any tax. All a bit complicated because I run a company and will have IR and IS this year - seeing the accountant next week and now you have to pay charges sociales on dividends which you didn't a couple of years ago when I set the company up - the main reason for doing so to avoid the 46% going straight out in charges sociales on anything you earn :-O
Tracy - watch out for the third year when the rsi will claw back what you haven't yet paid based on 46% charges sociales on anything you earn. A friend of mine just got a bill for 35.000€ :-)
I am doing the same job as when I was AE and I pay less to the RSI than when I was AE. However, I have to pay 500€ every month whether I have any turnover or not. In my last year as AE prof lib I paid 8000€ in charges but only when I earned money.
So on the contrary to what 'proper' businesses say, it is more expensive to be AE but it is much easier and less risky.
The income tax rate for everyone, which applies to your worldwide income is here on Service Public the font of all knowledge. If you are an AE that has chosen to declare and pay monthly, the rest of your familys income is still taken into consideration for the annual declaration.
Thanks for all your replies folks. I know now that I am not paying the income tax so I have that to look forward to but at least I know now how much % I will pay.
Andrew, you have always said this but every official source says DO NOT pay impots with AE if you are on a low income as it will not be reimbursed. Is it possible that you were reimbursed the PPE for low income as that is done on the impots.
You have to make a choice to pay the impots or not, it is not automatic,I never paid mine quarterly.
Yes, but you claim expenses, etc so do you pay more or less actually?
That's right. It is far more precise as too the allowances make more sense without thresholds and so on to make calculations tricky. For all the years I worked self-employed I never once managed to get properly near calculating my tax in the UK either. Even keeping books with every items entered, receipts and all the rest of it for permissible outlay and expenses, their calculation, thus the bill, and mine based on their information usually differed by a few hundred, once only a couple of k, at that usually in their favour.
It's not really that complicated Robert. The Social charges are the equivalent of the UK NICs and the tax is income tax. Only in the UK we pay a higher tax and lower percentage NIC. In fact, I think its more complicated in the UK because here you pay a set percentage on EVERY cent you earn from zero whereas in the UK you have those 'bands' where you can earn up to a certain amount before you pay any tax (e.g. I think the last tax year was about £9,200 or something).
It's only 'cos it's new to you. The UK tax and benefits system is getting into a right state at the moment and won't be any easier to understand when you go back I think!!
I would advise joining FEDAE or one of the other organisations that informs and advises AEs. Those of you who are FEDAE members will have received 'FEDAE Mag 131' at some time during the last 24 hours. read it and use the links to keep up to date. I went to a two day seminar they put on in Bordeaux where one of the speakers we could discuss with was from the Impôts. She was very precise in what she said and answered questions equally clearly, also left her contact details if anybody had issues including with local offices. I went to another more locally but of no consequence here. My point is more about the fact that the area representative told me that I was the first 'foreigner' who had turned up at such a session during the three or four years he had been rep. OK, so it is all in French and even native speakers wondered what half of it was about on both occasions, but at least I tried to work out what was being said. It may well help people to read the bulletins, go to such events and begin to find out about the nuts and bolts of the system and also be informed about changes and such matters as government debates on issues related to be an AE.
Having said that, I should read my bulletin forthwith...
Thanks, Sarah.
Well my CFE (another business tax) arrived in this morning's post so I'm now off to set up an online payment for that!!
but if you don't earn anything you won't pay IR (impôts sur le revenu). If you pay monthly and don't earn anything - no charges sociales and no IR (as it's a % of turnover). If you earn then you'll pay both but at the end of the year when you fill out your impôts you may well (my case) get a reimbursement ;-)
it's the best régime when there isn't turnover too - you pay nothing whilst everone else still pays charges sociales regardless of turnover/income - the reason why the AE régime is frowned upon by people in the mainstream régimes!
My point exactly, in my statement 'I thought EVERY AE had to pay taxes' I was differentiating between social charges and the income tax equivalent. The tax varies according to situations and the social charges only vary according to how much you earn and it being a percentage thereof (and a percentage of nothing is nothing).
no reimbursement - wrong, I used to pay monthly (collected quarterly with charges sociales) and most years I got a reimbursement ;-)
Everything's explained really well on the official site, never needed to pay anyone, and when the scheme started I had to lead the very nice lady at the urssaf by the hand through the régime as nobody had been trained up or knew what it was! ;-)