I have been an AE since it's inception in 2009 but in 2012 exceeded the limits so have had to change and (apart from a major hassle between RSI and URSSAF but that's another story) i have paid much less in social charges in 2013.
In 2012 i had a CA of around 40,000 of which I paid about 9600 to URSSAF (PL) this year i have had a CA of 35000 HT and paid the set forfait of 3500€.
http://www.rsi.fr/baremes/cotisations.html
OK, this will have to be made up but from my provisional accounts the RSI have decided that I owe them 6000€ in total for the year - on more or less the same turnover (as I charged TVA and had a CA TTC of 3900) so I have paid less charges now I am no longer an AE as I have been able to claim my expenses and running costs.
For reference I am a tour guide and chauffeur so don't have huge amounts of outgoings and you are not allowed to set your car loan payments against your profits.
expert comptable deals with it all as I simply haven't got the time. She said the changes were brought in mainly for BTP and applied elsewhere too but she's just getting to grips with it after going on a stage where all the changes were explained. Here are a few details. I think the idea is to stop the eternal game of ping pong with tva being charged, claimed, charged, claimed so many times before getting to the final customer. Nothing particualr for tabac - we have other strange things to deal specific to the industry...! How can you claim back more than you've paid...?
Is this something special for Tabacs? I ask as I charge TVA at mainly 10% now and somethings at 20% but claim most things back at 20. So far i have claimed back more than I paid.
Sorry, just had a quick look at the latest invoices from my suppliers - everything's changed since january and everything's quoted HT, no tva anywhere. My expert comptable said it would cost more but I can't see why, except that she's paid tva for me on some items that are 0 rated so that's why!!! Need to keep an eye on what's 5.5% and what's 20% or I'll be losing out too! In short I can't claim it back as I no longer pay it under the new system which should simplify things, but we are in France so I'll wait and see over the next few months...!
Why can't you claim it back?
Don't you just love to hate the the RSI and their charges sociales!!! Ours were budgeted at 30k€ a year by year three but I've set things up differently to avoid that and to avoid massive IR - SNC with split IR and IS now (the last owner spent 15ke a year leasing a mercedes to lower his IR!). And the latest government change to TVA means we can't claim it back, have to charge it and then pay everything which means a cool 20% tva increase for us :-O
Andrew, my husband has his own EI - last year as AE he paid 9000€ in cotisations so we know where you are coming from! Our total RSI last year was 15000! And for 2014 RSI have decided they want 14500 just from me alone - they think my CA of 35,000 is going to give me a profit next year of 29,000 - I would lol if it were not so frightening!
Heather, its true you can put 100% leasehire payments through but if you use a loan you can only claim the interest and the amortisation (depreciation?). Ridiculous and complicated and no one to tell you these things.
the situation's stupid - you can put 100% of a leasing contract against expenses but not a loan to buy the same car :-O No sense at all but hey that's France as we all know!
Tracy, I'm jealous - my OH and I pay forfaits of 6k€ each :-(
As discussed in the other thread, I'm still an AE, so can't add to anything here really.
This page:
http://www.experts-comptables.fr/csoec/Simulateur-EIRL/Simulateur-EIRL
is quite useful in providing comparisons. I seem to be just about at the break even point between AE and EIRL for the moment.
It all depends too on one's family situation, overall household revenue etc. So my position, as a single mum, tax-wise, with four dependents, will be quite different to that of say a couple, both working, with no children. Social charges will depend on one's profession, which regime one is under etc but, as far as I'm aware, will be basically the same for anyone with the same income/expenditure. Tax on top of that, for those who pay it, could make all the difference to the choice of regime.
As with so many things in France, it's complicated :)
Heather
ps Tracy I'm surprised you can't claim for your car loan, that's disappointing. What about if you leased a car instead? (mind you, that might be too expensive and not worth considering, probably just better to buy the car)