I understand that there's a new status of indivual society but what are the cost implications of this apart from accountant and TVA.
Also,how do I change systems in mid year without being penalised? Id heard of someone being penalised for not having advised 6 months in advance that they would go over.
I will not be earning huge amounts more than the actual limit for Profession Liberale so is it worth it? I may have the option of going salaried and finishing the rest of my 45 hr week in contract work keeping my AE status but will I not be slammed by taxes this way?
Pleased that I have got to this point and was relieved to hear that the changes to the AE sytem were not to be as awful as first feared but now lost as to where to turn next. I don't want to end up earning more but paying out more in charges and taxes so end up earning less than now.
Thanks for any help, advice or to be pointed in the right direction...there's loads of help for AE questions but don't know where to go for the next step.
Hi Christina
Hi there
Unfortunately there is no 'easy' or inexpensive way to have a business in France outside of the AE status. That's what made the status so popular. Once you're over the 33, 000 limit you can look forward to TVA tax returns to fill in a minimum of 4 times a year, paying an accountant to deal with all the complex stuff and spending a lot of time doing paperwork, as well as paying ludicrous taxes that you'd never imagined existed and paying social charges that you can't even deduct as an 'outgoing' (so will be taxed on too). My advice to you would be, don't do it unless you have to.
(the following is copied from my comment to Catherine, made earlier this week)
The most worrying comment on their webpage ( http://www.gouvernement.fr)concerning those who'll have to leave AE status is ' Une année de transition sans hausse brutale de cotisation sera mise en place'! In other words before robbing you 'brutally' they'll give you a year to prepare paying them! Thanks Sylvia - what a star.
Facing the hard facts, an AE who's forced to move 'up' to the next IE BNC status will need a minimum starting capital of around 7000 euros since the government invent new taxes + increase charges at the drop of a hat, and they bear no relation to the net earnings of a sole trader - believe me, I know. When an accountant is unable to tell you what EXACT social charges and taxes you face from one year to the next, then I don't see what chance us lesser mortals have.