We normally work as individuals and do not always have these costs, so actually fit appropriately in the 'liberal professions' as AEs. However, the principle is always the same with outlay that is supposedly 'compensated' but does not really appear proportionate to any particular way of earning an income.
Totally understand where you are coming from Brian, but remember for a B&B and gite you are also not compensated for the initial outlay only the ongoing cost of having to run the business through your home. When the sheets wear our etc... We have to pay out of our pocket as well. His materials are paid at the lower rate so, therefore compensated the same as a B&B etc... and perhaps the cost of material should be bolstered up on the invoice a little to compensate. That is his choice but might help a little. As for your circumstances with substantial travel costs to work coming out of the invoice, surely you are in the wrong regime not being able to offset or perhaps your expenses should be paid to you separately if needed for the job with proof of receipt to who ever is contracting you, instead of being invoiced in with the cost of the actual service.
I pay 26% to RSI, it is decided by the type of activity. Whilst it all seems very unequal the idea is that we all pay for turnover rather than earnings. Where equipment or materials are required that come out of pocket but then are repaid in the bill, that is not allowed for. At present we have an example here of two of us having a 6k contract but one of us needing to go on a trip to the country the work is for. That means an outlay for a flight which is already 1.5k, expenses such as hotel, living costs and the other bits and pieces such as going to and from the airport, parking for eight days, etc. So call that 2k. The payment to pay the fees plus payback costs will be 8k. We are supposed to pay 26% on the full 8k, irrespective of about 25% of it being out of pocket expenditure. We are not happy about that, so will deal with it. Anyway, the point is that the rationale is hard to get behind, the inequality stunning and whilst you are 'compensated' quite rightly, why isn't a carpenter given that tools, materials and so on are a pretty hefty outlay? If you can work that out then you may find yourself raised to the status of a national hero!
Something that you need to remember as a B&B or a gite under AE, is that you cannot take off the cost of electricty, washing sheets, ironing, water etc..... therefore the reduced rate is there to compensate for the fact that you cannot reduce your tax bill by deducting these as expenses. One would assume that as a carpenter your son works at the clients home therefore he does not have these expenses. If he does a lot of work at home then perhaps he is in the wrong regime and should consider another one that allows these expenses before tax.
Geoff, France must be at the top of the inequality league tables in so many respects. Just take the differences of salarié in a big company with a CE and all the advantages and someone else in a pme or self employed. As for the differences between all the different regimes cpam, rsi, msa, cipav etc...!!! and for the record, I pay 48% to the rsi, then IR and IS so like so many I can easily kiss goodbye to getting on for 60% :-O
fair enough about the 70% - but it does seem that the system discriminates favourably towards b&b owners.
Don't know about b & b but what your son is paying is correct for a carpenter. He should get he 70% allowance for tax though same as you - unless he is paying the income tax as he goes? in which case he wont pay any tax at all on the income at the end of the year.