Auto entrepreneur - new charges


(Catherine Wales) #1

Have other auto entrepreneurs received their notification asking for the square metreage of your working space? Have you received the cotisations being charged for this yet? What’s the view of this new charge?


(Angela Weston) #2

Sorry Only saw the header. Have now read all your very thorough messages and underestand - but still not heard or received this tax… as yet… Does it have a specific title or just Taxe Professionalle?


(Angela Weston) #3

Hi Catherine
This is a new one!? Not heard about this - do you know how it works? At this rate I think we may well have to close down - we have more going out than coming in at present - like many others I suspect…


(Catherine Wales) #4

I know, the system does not encourage people to work, it encourages them to claim benefits instead. No wonder the french youth feel inclined either to leave or just sit at home. I’'m on a training course at the moment and legislation is a part of my studies. Each week makes me angrier!! There are so many actual traps placed to ensure the state can get the maximum amount of money from each employer without ensuring that the employer can actually function financially. I’ve also been warned that if I stop my busiuness (as I am considering doing due to not being able to meet the costs) I will not be able to open up the same business at a later stage if I wished to do so. I can open up any other type of business, simply not the one I stopped - why??? And since Jan 1st this year, I am now obliged to change my mutual to a Govt. one because Chambres d’hotes come under 'hotels and hospitality. Also if I employ anyone even for 4 weeks a year then I am obliged to pay their mutual too! Oh, and if they leaave me and their next employer doesn’t have a mutal I have to continue paying their mutal!! I can’t afford to do this. Hence me bringing in people on ‘workaway’ systems who work only for food and lodgings. (it’s a legal way round the system).


(Patsie Fear) #5

With regard to this point about being an AE and not paying this percentage tax for 2 years beware. I decided to be totally legal here and declared myself as Activitee des Artistique to sell my handspun, handwoven textile products. I made no money so decided to fall back on my secretarial skills. Therefore I registered, and it took 2 months to do so, as Secretaire au Domicil as I type digital transcriptions. Now I have been told that as I was registered before on what is considered self employed I have no 2 year allowance and must pay straight away. So with 21.3% for cotisations as I am providing a service I know have to allow for this extra tax (fonciere) and try to find out what the ceiling is on tax so that I do not exceed it. I will go then be able to judge how much work I should take on weekly so that I do not exceed the limit because of course you are paying your cotisations brut (gross) and your tax brut. Do you know I am begining to wonder if it’s worth it. I will probably just work for a year and then just take my pension but it seems a shame that it’s so complicated to run even a small business here. No wonder so many people opt out or just stay in the same job for years and years, it seems very short sighted of the powers that be as eventually there will not be enough people putting into the pot for everyone to have something out of it for social needs such as health and pensions. Rant over. I will contact my local Tax Fonciere department and ask them the business rate and then decide just how big my desk is.


(Deborah Marsden) #6

That doesn’t sound good, perhaps check with the tax office & see what their opinion is. Have a look at this website, which is brilliant:

http://www.startbusinessinfrance.com/index.php/


(Catherine Wales) #7

That was my concern and my suspicion. I’ve already talked to the Mairie and their belief is that I should include all areas used for the business.


(Deborah Marsden) #8

I must admit, I can’t find any details of how to fill in the form regarding chambres d’hotes & hotels. If you were to include the whole house, that would be vey costly, so it may be worth asking the people who sent the forms to you, or your mairie perhaps. I think it will just be your office, but I’m not an expert on this type of tax, I’m afraid, so best to seek advice from the tax office.


(Catherine Wales) #9

Ah! So you don’t pay for the square metreage being used for the business? Because that would need to include almost my whole house!


(Catherine Wales) #10

They are ahead of themselves then as I only registered last year! And it’s difficult to know what I should include or not include. My house and areas used cover over 600 sq. metres. Do you know what the metreage charge is?


(Deborah Marsden) #11

Hi, yes this tax replaces the old “taxe professionelle” which was levied on all types of business. When you fill the form in, make sure you only put the square metres of where you work, so if you have an office that should be a bedroom, just put those measurements in, or if you don’t have a dedicated office at all then don’t fill that section in and see what they say. If you work outside of the home, eg, in clients’ houses, then cross it out. If they are in any doubt, I am sure they will come back to you, but as Lucinda said, you should be exempt for 2 years anyway. Originally you were only exempt if you paid your tax at source under the AE, but they have opened it up to everyone, I believe. Lots of people have received bills this year for this tax after their first year of being an AE, but this was erroneous, so you should not be paying it until year 3.


(Catherine Wales) #12

I totally agree. Unfortunately my square metreage is enormous if it covers the main house with the letting rooms, the gites, the gym, the yoga space, the clients lounge, their dining room etc., etc., As it is my charges with so many one nighters for the B&B are in the region of 70% of my income. That’s including the 25% I pay for the right to operate. And that is working it the french way. If I employed local staff instead of bringing in young people from helpx and workaway I would be paying the state and earning nothing. You have to think and work like the french in order to survive in France.