Your priorities are limited by legislation I’m afraid. On what basis would she be applying for a carte vitale? You can’t just walk in and get one, you have to prove your entitlement and it’s the same rules as for a carte de séjour. It all hinges on your status on France because depending on your status, there are certain conditions attached to your right to freedom of movement. If your daughter applies for a carte vitale as an EU inactive, she will need to start by proving 3 months residence in France, because inactifs can’t apply until they’ve been here for at least 3 months. Then she’ll be asked to prove sufficient income. Then she’ll have to wait several months while her application is reviewed. If she can’t prove those 2 things then they won’t accept her application because she is not exercising her freedom of movement correctly.
On the other hand, if she sets up a business her status will be “worker”, the conditions that apply to inactifs don’t apply to workers, and she will receive her attestation of health cover within a few weeks.
Once she has her attestation, she needs to register with a médecin traitant, have him assess her condition, and provided he diagnoses it as an ALD he will do the necessary to register it so that she gets 100% reimbursement for treatment directly relating to that condition.
Droit du sol applies for the acquisition of nationality only if you are living /have lived continuously for a number of years in France and you are under 18. Otherwise you have to have at least one French parent to be French.
Ok great will get her set up first , was dissaponted that we have to pay 500 Euros to set micro per person a little high I thought that being for Beauticians …
Is it the same for commercial agents does anyone know ? Under the Micro regime
the prices vary depending on the work. as beauticians she may have t go on a course before she or you can begin trading. on ME status there is no tax exemptions you will both pay tax on every cent earned.
id suggest getting in touch with some of the english beauticians out here as there are quite a few all over the place.
depending on where you are moving to there are several facebook groups dotted around too.
“no tax exemption” - yes and no: it’s built into the auto entrepreneur rate of cotisation which is far less than the main stream schemes and the huge advantage is that if you don’t have any turnover you have nothing to pay - not the case in all the other business set-ups
Stella - it’s the ONLY way to go, I only went self employed once the auto-entrepreneur scheme was launched, it was way too risky before that. Under the normal scheme the RSI forfait is around 5000€ a year regardless of income and increases as you earn more. This is why the auto entrepreneur scheme is disliked/gets bad press and is seen as unfair competition, especially by artisans!
The trouble with calling it tax, is that to most Brits, tax means income tax. What you pay quarterly or monthly on ME is essentially social contributions. You can opt to pay income tax at a flat rate at the same time, but of the 20% or whatever of turnover that you pay in charges, only around 1% or less is income tax.
If you opt not to pay the flat rate income tax monthly/quarterly then if your total taxable household revenue (RFR) is below the tax threshold, then you would indeed pay no income tax on your earning.
But it’s social security contributions that are the great burden for most small businesses, not income tax. I think sometimes it confuses Brit newbies if we refer to it all as tax, although I know they call them social taxes in the US. I’ve come across Brits who have been running their ME for a year or more and still think they’ve been paying income tax every quarter, when in fact they have paid no income tax at all. Honestly it horrifies me to think that people have paid out thousands of euros and they don’t even know what they’ve paid it for.
The rates were calculated so that a typical business with average expenses and overheads would pay the same on ME as it would on a mainstream régime, ie for a business in the services category with average expenses, 20% of turnover should work out the same as 40% or whatever of profits. If your expenses are lower than average you’ll be better off on ME, if your expenses are higher than average you’ll be worse off. It was never intended to be a cheaper option, the advantages are its simplicity and as you say, the fact that in theory you can’t end up paying out more than you’ve earned. Saying that, if you have very high expenses you still could, for instance if you haven’t understood the scheme and you subcontract your work or rent expensive premises or something stupid like that and end up with less than 20% of your turnover as profit. So potentially it has advantages but it’s not entirely a no brainer.
Very clear and correct, as ever Anna. My advice is aimed at those who are using the auto entrepreneur/ME scheme to get into the system, try and earn a bob or two and don’t want the risks/hassle of a classic set-up. It was also set-up to help people into self-employment with the aim that they’d move across to the mainstream system once up and running, for the reasons you’ve given
there is no AE anymore AE scheme was scrapped in 2106
There is the possibility of reduced tax rates if you fit the criteria but most folks arriving here to get the tax breaks have to have been unemployed for x amount of time or have medical reasons to why they were not working and now want to. The course fees are not something anyone can avoid but you can try to register with ple emploi who may pay it for you bu that will mean waiting for a period of a few months while its all sorted and most of the time they dont end up paying fr it.
Yes sorry @Anna tax is old habit i cannot get out of. wage contributions is right and this you can if your lucky get on a scheme that allows you to pay 5% then 11% then 15% for the first 3 years. but so far ive only known 2 brits qualifiy for it myself included and they do not as a rule even offer it. They will offer 3 years no contributions but be ready at the end for a big bill and if you go over your limit the fees are crazy based on the years work.
The tax at the end of the year is great because from that i can deduct loads of things like fuel in the car and many other things. saved a fortune last year.
Did I read that one of Macron’s incentives was that new micros won’t pay any cotisations during their first calendar year of business? I think this is going to be brought in for 2019. I’ll see if I can find a link, I could have dreamt it, but I do seem to recall thinking “I wish they’d thought of that back in 2009”.
Though to be fair, I earned so little in my first year that it wouldn’t have made much difference!
5% is nothing though if you can get it and there is already a scheme in place that you can py nothing for 3 years
It is just a case of knowing its possible and applying for it.
Just ask for reduced tax rate (Contributions)
I always found it funny I arrived for my appointment to sign up as a business and my wife was late. I started to do all the paperwork the lady put in front of me and 30 minutes later my wife arrived.
My wife being french spoke to the lady who then said to her your French? my wife replied of course. The lady took all my paperwork off me and gave my wife a new set and started telling her about grants available and contribution breaks and all these other things… Not that being french gives them an advantage They also gave a cd for doing my contributions and my taxes which made it so much easier.
it’s pretty much the same scheme just changed the name : talk to anyone in the street (or in my tabac) and we still call them “auto entrepreneurs” but you’re right, the name has changed. I’m not talking about tax/impôts, I’m talking about cotisations
??
Such as?
The official micro entrepreneur website still has https://www.lautoentrepreneur.fr/ as its web address and still says “le portail des auto-entrepreneurs” in big letters at the top… so I think we safely can that say micro is an evolution of auto.
I started as an AE in 2009 and morphed seamlessly into an ME when they changed the name and never noticed a difference. Obviously there have been changes, but there always did used to be changes every year ever since the scheme started.
They also gave a cd for doing my contributions and my taxes which made it so much easier.