AE Home Office "working from home"

autoentrepreneur

(Elaine Rogers) #1

Hi all,


1. I am setting up as an AE and will be working online (teaching/training). I have a suspicious feeling that if I say I have a "home" office or working from home, I will pay extra something (CFE perhaps?) Can I get around this by saying I work from a friends office (no cost)? Or is there another way to avoid extra charges?


2. Is there a type of work where I can be a general teacher online? And not specify the subject? The list is mind boggling :-(


3. there has been a lot of talk about second bank accounts for AE - does a paypal acc qualify (I feeling is no as it's not an actual bank) WIKI says - "international digital wallet based e-commerce business allowing payments and money transfers to be made through the Internet." It's described as an "internet payment company" so I reckon not.


Any advice on the first Q greatly appreciated, thanks



(Sarah Bayley) #2

Hi, I've sent you a friend request as I too am a teacher/trainer via Skype and it would be good to share ideas/experiences.


(Catharine Higginson) #3

Yes indeed! Sadly a good point Elaine....!


(Elaine Rogers) #4

You're talking logic there Catherine, so I doubt it


(Catharine Higginson) #5

Re Paypal....I think you are supposed to declare a paypal account on your French tax return as it is considered a bank account so presumably that one cuts both ways?


(Elaine Rogers) #6

Please do Jemima - sorry to worry you.

It's probably grand :-)


(Rachael Fillatre) #7

I don't know why, but I always feel so overwhelmed with tiredeness and despondency when reading these posts. ;-) Bon courage everyone!


(Sarah Bayley) #8

Now you've got me really worried - as there's no way I can or would want to bring all my earnings to France as I have very few outgoings here and lots in the UK. I will check with my accountant and see what he says..


(Brian Milne) #9

I also have basic state pension to jam the works.

I probably understand less than the 10% you did, just do it. It is fortunate that I am married to somebody who went to commercial school and learned bookkeeping before she went to university. Given that her Swiss system makes the French one look simple, she strolls through it and has coached me on how to mend my ways of several decades of take a 'guess and run with it' approach that I got away with, but also by reminding me that such luck usually runs out.


(Elaine Rogers) #10

lol, I understood 10% of that :-)

Our accountant told us hubby needs to transfer his tax from Irish tiny pension to here. So we got a rebate from Revenue (arrived today for 2014) and then we declare it with our returns this May.

I have a feeling he will pay more here though :-(

It's all so confusing Brian, honestly, how do you cope with it all? Your accounts must be pretty complex at the end of the year, with income from everywhere, and being taxed elsewhere.

I'm tired now, and it's on 11:33


(Brian Milne) #11

We earn most of our regular incomes in US$ but from all over the globe. My OH also has her small trickle from the house sales here. Anyway, in my case I have some income beside the research consultancy from royalties and copyright and licensing fees. Both are taxed at source in Germany/Netherlands and the UK respectively. Pre-taxed income will not go into the dedicated account, nor should it. It is a bit of a problem in that it means that none of it is declared for the 23% social stoppages but the dedicated account will also be used by the fiscal authorities for tax we were advised. The pre-taxed income is exempted here unless a) we get it rebated there or b) can somehow arrange for taxation here. I cannot get the latter and having tried to get rebates was so frustrated I gave it up as a lot of effort for very little gain. So, it is strictly what comes to France untaxed where all main earnings are paid in that will go to the separate account. My one previous and forthcoming payments are going into my existing current account because that was set up in the contract before I knew about dedicated accounts, from now on though and if necessary I shall have my string of reasons (excuses even) ready when the RSI or whoever demands to see a statement. Next thing to remember is to change the account details for paying them each quarter!


(Elaine Rogers) #12

Hi Jemima,

Thanks for your input, my understanding is that whatever I earn (from whatever country) I need to bring into France as I am tax resident here. I didn't think what you are doing was possible, but doesn't affect me anyway as I will be billing in Euros and have no ties with UK as I'm Irish. I will be using Paypal for most payments, and then transferring to the enforced "dedicated french bank account" and then to our personal acc.

It's all mad really, and so confusing yes. I don't think I'll ever understand completely either :-(


(Sarah Bayley) #13

I too work online from home but most of my money is earned in the UK and never makes it over to France at all (let alone into a dedicated account). I have to declare and pay tax on it in France because this is where I am physically located, but that is paid for by the small amount of money I earn in France. These new rules have got me completely confused - I never seem to fit any of the boxes!


(Elaine Rogers) #14

I understand the commission is about20% from memory. Yes, they ‘employ’ you and pay your dues. But it’s a high price - dues plus commission of 20%.
As I said earlier, it suits some people, and I’m glad it’s available at least.


(Donna Stella Vekteris) #15

Unless it can somehow reduce one's social charges and taxes, I can't see the advantage in the portage system either.


(Brian Milne) #16

Well yes Donna, it appears so. Neither of us saw the point when we can do it all ourselves perfectly well without subscribing. As for actually giving advantages, we had the feeling that it might also impose constraints because sometimes we have contracts that take three months of so to complete, thus we are sometimes up to six months between fees, despite having an advance, then pay tax that we have to chase for repayment when it is too much anyway. As an AE we find coping with tax easier. We did not look into it in real depth but simply concluded that we could not see advantages or disadvantages either way, so why bother.


(Donna Stella Vekteris) #17

Brian, is that all that a portage company does? I thought they became the freelancer's "employer" and handled all the social charges and paperwork, which would reduce the freelancer's taxes by changing their status to that of an employee? I've never quite understood it, but I'm not allowed that status anyway so never investigated further. Of course there is a fee or percentage, so it may not always be advantageous.


(Brian Milne) #18

Both of us looked at these a couple of years ago because as consultant researchers we actually have no chambre de métiers that is of use to us and knew some kind of demand to join one was coming. All they appear to do is offer membership, then advice that is available on gouv.fr and even here on SFN Useful Links. The difference is that they have a subscription, so neither of us looked any further.


(Elaine Rogers) #19

Hi Hilary,
I know of these yes, and thank you for your consideration and comment. I would not consider them however.
I am sure they provide a vital service, otherwise they wouldn’t exist. Just not for me :slight_smile:


(Hilary Jane Dunk) #20

Hello,

I've just come across this and it's 'sort of' relevant........

http://www.freelanceinfrance.com/

I'm sure there must be other 'Umbrella Companies' , like this, around.......Have any of you had experience of working this way ?