Separate Bank Account for AutoEntrepreneurs


(Arthur Groves) #1

We have seen the announcement of the the new obligation for AE to have a separate bank account. Before I burden my bank, I just wondered if anyone had heard either of the possibility of this ridiculous idea being thrown out, or of a legitimate way round it?


Why am I saying ridiculous? Consider the facts of my situation :


1. Total turnover 2014 just over 11 000€ - only a small extra activity in semi-retirement, which I was happy to declare and keep legal with cotisations etc. Likely to reduce, not increase, as age creeps on.


2. Of that, only 4 500€ came in by cheques, and therefore went to the bank. Surely even they are not daft enough to want me to walk to the bank with bundles of small notes, and then go back the next day to withdraw it for spending? So in no sense can it be an extra confirmation of the amount declared honestly on the quarterly return.


3. Despite the small scale, both cheque book and bank card would be needed because of the different ways of buying the stationery, books, minor equipment which are my expenses. But no more than c. 20 transactions per year - what a waste of effort. The bank will love it.


4. Still on the outgoings - since NONE of the outgoings are allowable anyway, why could it possibly matter to the authorities how much I have paid and to whom and for what?


Thinking more widely than my own situation, I think the saddest thing is that having invented an easy way to encourage people to legitimise activity, they are now adding so many administrative requirements (you know the others) that they are simply pushing people to say "Oh *** it, I'll just stay on the black".


Any helpful comments?







(Christine Borrow) #2

Hi - I think this will answer most of your questions. It is a reliable because it's a website tailored by the French government

http://www.service-public.fr/professionnels-entreprises/actualites/007355.html

Also most banks will ask you to pay for a professional account. It is not necessary if you are just AE (a fortiori if the income from your business is not your main income).

Don't let the banks patronise you as CA tried with me ( more than once... ). Show them a print of this webpage and ask why they do not comply with the law ;) Most of the employees have been trained to say what the banks wants you to hear - it doesn't mean they are responsible.

If nothing works, ask to speak to the manager and take it further if needs be.

At the time, I chose to drop my project of AE because it was at a time when a lot was changing in that status. Maybe one day...


(Louise Doddrell) #3

I have a name for my company so they knew, then they charge €8 a month for nothing really.


(geoff faulkner) #4

but you don't need an AE account. (what is that anyway?)

I am an Ae and I simply opened up a second personal account with CA and I use that account for my business.


(Louise Doddrell) #5

Not for an AE account


(geoff faulkner) #6

CA is free.


(Louise Doddrell) #7

I used CA but wondered if anyone knew of a free account as I am really paying money for nothing.


(Christine Borrow) #8

Ok, thanks. Very useful. Should have read that first...


(Christine Borrow) #9

Hi

I have not looked into the legal details for a while... BUT a while ago (enquiring about become AE, which I chose not too, chicken me - so did nothing at all in the end), a separate account did not mean a business account = so it was FOC.

Also a business account was necessary if your business was your MAIN activity (= income).

Is this still true ?


(Sarah Bayley) #10

I asked my accountant the same question as most of my earnings are in pounds and I have no need for them in France (though I declare and pay tax here). He said not to worry about it as long as I keep a record of everything and that I have a separate account for French earnings.


(Sarah Bayley) #11

Just as well you didn't tell them because it is against CA's rules to use personal accounts for business. I ended up going to AXA instead and they are pretty useless.


(Sheda Savage) #12

I have opened a bank account even though most of my money is cash. So I have assumed I make journey to the bank to deposit the cash. Is this right?


(Patrick Bell) #13

All my earnings come into my uk account and that is what I use to audit my receipts. Being even less than yours at around £5k a separate bank account is a nonsense. Such a bank account would merely show sterling to euro transfers every few months.

I'm hoping the uk accounts are enough!


(Martin Styles) #14

I didn't know this was the case and have another "spin" on this. We haven't taken AE status yet but are accepting deposits on our summer accommodation and intend to take AE just before the final payments come in. Problem is...most of the payments will be made in sterling through a UK bank account although we are resident in France. Of course, we intend to declare this income to French authorities but want the flexibility to move the money to France when it suits us. Will we have to move this money to a separate French account rather than have the option to leave it in the UK?


(Steve Hayes) #15

My OH finally got Banque Pop to open up a business account for free; failing that La Poste is cheapest and can be operated online. And yes it's rather silly, and no cash doesn't have to go thru the bank. There's another thread (or several) on here


(Julia Grange) #16

Many of us AEs agree, Arthur. There have been many debates (elsewhere) on what to do etc. Many AEs have opened a basic account at La Poste bank. I opened one with Credit Agricole, with whom we bank anyway. Wanted to charge something per month ( €4.50?), until I said I didn't want the insurance which is what this was for (in case I lost a cheque book or credit card). So free banking, but about 25€pa for the debit card. I didn't mention I was AE, and adviser didn't ask. So yes, open a separate account but keep it cheap and simple!


(geoff faulkner) #17

well I just asked my bank manager to open a second personall account and that was simple.

I will get a cheque book (free) and put my business cheques in that account and pay for a few things with cheques from it.

I have given up trying to fight against it. We are just here as ex pats (or did i mean immigrants) so I just take it and drink the wine.

cheers

geoff


(Sarah Pain) #18

I agree wholeheartedly. I get paid purely by bank payments directly into my account but I have nothing to buy for my business as I work from home and offer a service not a product etc (but as you say we cannot claim on expenses anyway). I only really earn enough to live off so whenever my payments arrive in the bank, I pay bills, do the weekly grocery shop and withdraw cash I may need. By having a separate bank account all that is happening is, my payment arrives in the bank and I transfer it to my personal account. Stupid really. But i have no use of a business account to pay any business bills. The whole thing is crazy. In the UK, it is so much easier to set yourself up with an income from self employment, do your annual return and pay your tax job done but here, the hoops seem to be of such a large quantity that either you trip up or refuse to jump through them. Lately, i have wondered if it is all worth it and had been thinking of deregistering and looking at ways of being legally domicile in the UK for tax purposes. I simply do not have time to make an income, run a home and deal with piffly annoyances that seem absolutely pointless.

Ok, soap box available.....next! :-)


(Arthur Groves) #19

Do you pay cash into the account, or does it just show what you earned in cheques/CB ?