Thank you for the well worded answer to that question. I will probably be undertaking a self employed sales consultant position with an immoblier in February/March. I shall need to clarify that I have completed ALL necessary forms for tax etc.So I shall message you here Fabien.
Yes and no… I don’t know your exact situation but if you were with an accountant my guess is that you were an ‘Entreprise individuelle’ and as you declared your profits on your tax income you’ve probably opted-in for the ‘régime d’impôt sur le revenu’ (instead of ‘régime d’impôt sur les sociétés’).
Assuming that (which might be wrong) you’d be making saving ONLY if your professional expenses aren’t very high (which I suppose are not indeed). BUT please do note that for AE / ME & EI you do not need to have a pro bank account… it’s ‘recommended’ (mostly by the accountants and the bankers themselves) but you can go with a classic account (don’t say to the banker that it is for professional usage when opening the account though as they try to force your hand in getting the pro account otherwise… some even state that it is mandatory as IT IS NOT for AE / ME / EI).
To make the switch, long story short => tell your accountant (or any accountant for that matter ;)) that you are considering that and he shall do it for you… Only thing with the accountants is that they don’t like to switch you back to AE / ME because they won’t be able to charge you fees afterwards so you have to find a ‘good’ accountant
I have a question about cotisations for ‘gîte’ activity which is my husband’s only income. Effectively, it is a part of our house that we gave a seperate entrance and let out short term via Airbnb and Booking.com.
Sam is an AE and we have been paying the higher rate of cotisations since summer 2014 under the impression that the activity came under ‘provision of services’ rather than ‘Sales’.
I see here that it is not the case - are there any exceptions (i.e. the exact activity declared upon creation of the AE - I have to look it up but we may have put it as ‘chambres meublés’?)
Dare I ask if it would be worth trying to claim back the overpaid cotisations? Will the authorities just accept it if we start paying the lower rate next quarter, after 2.5 years paying the higher rate?
If you think you are registered in the wrong category I think you will have to start by applying to change your registration. I don’t think you can just suddenly decide to start paying cotisations at the wrong rate for the category you’re registered in.
I am somewhat back and wanted to share something with you all.
“How much will I pay in social charges as AE?”
“How much will I pay in tax as ME”
These strike me as (very) frequently asked questions. After drawing on much goodwill here in the forum (and learning lots, thanks!) … and then failing to find any online tool to give me at least rough answers to the above questions, I have drafted what I hope will be an estimator tool we can all share and use.
Rather than type out a thesis, I’ve two links for those of you who would like to check out provide some guidance on this unofficial “Guerilla AE / ME Social Charges & Tax Estimator”
You did invite comment, so to be picky:
You might want to expand the title or add a line to make it clear which category of AE the calculation is for ? ie I presume ‘profession libéral’ (with RSI?).
Also I think the figures shown are the 2016 rates ? They tend to be adjusted every year, in fact they were reduced slightly (yes you did read that right !!) for 2017, new figures here Auto Entrepreneur 2017 : Quels changements depuis le 1er janvier ?
And now to be really anal, sorry ! but how about labelling them Chiffre d’affaires (turnover) brut / Chiffre d’affaires net instead of Revenu brut and Revenu net ? Reason being, that on your avis d’imposition after the annual tax exercise the tax office will calculate your ‘revenu net imposable’, ie taxable income, which as far as they are concerned is 66% of your chiffre d’affaires so is a totally different figure from the ‘revenu net’ here. If for any reason you are filling in forms relating to your income (eg applying for a tenancy, a loan, a home improvement grant etc) you are asked your ‘revenu net imposable’ so this is a significant figure. Being a bear of very little brain I think it might confuse me to have two different figures in my head, both labelled Revenu net but calculated entirely differently. If that makes sense.
(Although thinking about it I’m not sure chiffre d’affaires net is very a meaningful term, you can probably think of something better.)
Very useful and will make things a lot clearer for people.
This really interests me Fabien!
Could you tell me the law that permits this please? There is always a reference to any decision made. I need it in what I’m dealing with at the moment. Thanks so much.
I have not been on SFN for some time so sorry for not getting back to you earlier… I’m now in Brittany (school holidays nearly over and I will have more time on my hands)
(A while back I went to the tax office for information on how to declare small amounts of earnings periodically/seasonally. We are going back a few years. He found a document and then… Cut off the top and the bottom with. A large pair of scissors and told me that he was not allowed to say where it came from. It was mons Caré in Dinan… He is no longer there…did he get the sack ).
This is what you wrote : “If you don’t intend to get the VAT back nor edit any invoice then you can just sell the stuff you want without any business to incorporate as long as you declare that on your national taxes and if your turnover don’t exceed a certain amount (I think it’s around 4,000€ per annum). Above 4,000€ you have to be incorporated.”
I would like to know what is possible today 2017.
Mille thanks for any info… My pension is really tiny.
Did we ever clarify what these mysterious flat rate figures are that you (mistakenly) imagine you would have to pay as a micro entreprise? [quote=“Jan_Remy, post:27, topic:14711”]
46€ X 4 = 184€ + 120€ or 140€ each year = 304€ 324€ without counting the “taxe professionale”
not being able to take off any expenses.
Auto entrepreneur, now micro entrepreneur, was introduced specifically to enable people to declare small amounts of earnings periodically/seasonally. There are certain obligations, but the principle is that what you pay in charges is always directly proportional to turnover. If you have zero turnover during any given quarter, you make a nil declaration and there are no charges to pay for that quarter.
However it does depend on the nature of your activity because a few specific activities are excluded from the micro entreprise scheme.
Hi Fabien, Thank you for your reply. A medical family issue is tKing up a lot of time at the moment. So creating an enterprise is on hold. With Macron now In place, it will be interesting to see what he does with the RSI.
Hello everyone! Great discussion and warm support from several people.
I was wondering if you could help me find my way on the French taxation system.
I have moved to Paris on August 30th this year and just got an offer to work from home by a company located in Sweden, starting on Jan 2018.
I am married with 2 children and my wife has no income.
The work is basically to provide technical sales services as a consultant.
The offer in the table is EUR 77000 per year and so far my plan is to register myself as auto entrepreneur (I know is the old name).
Would that be the best cost-effective way to do it?
Can I also rely on the 50% allowance when calculating my taxes?
I also heard something about a tax reduction for new business in the first 5 or 8 years. Is that right?
if your working for another company you might not get tax breaks. check it all out with local offices. I take it your being paid untaxed money already as if your contracted by them im not sure you can become a ME.
Might well be worng but best ask someone like @fabien
Hi, unfortunately Micro Entreprise won’t cut it because even with the new limits the maximum turnover is 66.400e. For that amount you’ll have to go for an Entreprise individuelle and you’ll have to charge the VAT (but they’ll be able to claim it back). If they have a VAT number you can send them invoices VAT free directly but they should declare it on their side.
You’ll still have to pay social taxes on your revenues + national taxes. Social taxes are about 40% and national taxes in your case will probably be 14% or perhaps even nothing.