I've just joined this community and am in awe of the tremendous resources available here.
I have a question on taxes which I posted in the tax thread - it was kindly suggested I might post it here so here goes:
I'm not quite sure what I need to do in order to legally work as a blogger and/or freelance writer (permit is no problem as I'm actually a French citizen, though I've lived abroad most of my life).
I see the AE ceiling may be brought down to about 19,000 Euros, while the EURL seems amazingly complex for freelancing...
Am I missing something? Or should I start packing my bags?
Thank you for any light you can shed on this - I'd be most grateful.
Thank you! But I'm afraid that status would only cover about 15% of my work. From what I can see, my best bet would be to start as an AE and join the URSSAF under their communications/PR section. If then I make too much money (who would complain about that??) I could then shift to the EI. At least I could deduct business expenses... but at least the AE seems to make sense to start.
Thanks Louise. All seems to be a bit of a mine field! I am frightened that if AE is discontinued, another horrific system will replace it, with no way for one to withdraw!
Still, I am not going to work “on the black” it is simply not right in my opinion.
Bénéfices Non Commerciaux, which basically means that you sell services and not goods. All translators, formateurs, trainers, interpreters, come under this category.
I have a friend staying at the moment who lives in France and is on the cusp of entering the French tax system. I will be doing so as well next year probably. When discussing AE with him, he said it was being phased out in 2 years time.
I've been freelance since 2006 and was under the regime EI BNC for 7 years, but finally threw in the towel when URSAFF and RSI decided to add an extra 3000 euros of charges for no evident reason just before christmas last year. This was on top of the 250€ per month I was paying them during the year. Added to that I was charged around 800 euros tax CFE for a small room in my house where I occasionally worked. Under this business status I also needed an accountant which added around another 800 euros a year. I refused to join an association agrée for the simple reason that I was never imposable for tax due to excessive charges and low earnings. In order to join an association agrée it's best to wait until at least your 3rd year to see what your earnings are, to see if it's worthwhile to you. To be honest, the 25 % extra tax is often minimal compared to the 'hassle' of being affilated to this association. Although your accountant will always tell you the opposite.
I joined the AE status this year and have found it wonderully simple compared to my last 7 years!
I'll never return to the EI BNC status due to unpredictable annual charges or the RSI, URSAFF and CFE, as well as the excessive paperwork.
The AE ceiling is not being brought down as things stand - but potential changes to the regime are under discussion in parliament as we speak. The latest report was that the item on the agenda to lower the earnings ceiling has been removed.
You will probably find answers to most questions on the Start Business in France web site: it helps people wanting to set up their own business/become a freelancer in France.
But you are right: it is not easy being a freelancer here if you are outside the AE regime. However, I have managed - so far - under the system with the help of an accountant, and others I know have too. The key is to save for the infamous third year, when the gov claws back its money from year one, when they did not know what you earned.
Another piece of advice if you become an Entreprise Individuelle under the BNC regime (ie the one above AE) is to make sure you join an Association Agréée, otherwise your taxable income is increased by 25%. Oh yes. It's like a form of legalised robbery as there is no apparent reason (to me) why they do this.