Puddlenet

As I see it, the most mysterious aspect of payments the self employed will have to make in France is not the actual tax - it's the Social contributions. We're frightened because we don't know precisely how much we will have to pay and whether our income will actually cover the charges. Also, even with a good knowledge of French, understanding the tax legislation forms may be beyond us and so the cost of a French accountant is also frightening (coupled with the fact that we have read that accountants advise differently .. so will we even be getting the correct advice?) In David Hampshire's book 'Living and Working in France 2005' he states: "Recent legislation has provided some more than welcome respite for the newly self-employed, who, instead of making crippling social security contributions from their start-up, now make contributions (as well as income-tax) as their business generates income. Eg, if you earn less than 27000 euros from a non-salaried source, you can declare it as a MICRO-BIC income on your tax return and you may be entitled to exoneration from part or all of the social security contributions on this income..." He also says: "If you're continuing a business you were conducting in your previous country of residence, where you were making social security contributions until the date of your move, you will be charged contributions in your first year of residence in France at a basic level equivalent to 30 per cent of the minimum contribution (around 1,100 euros). In your second year, you will be charged contributions according to your declared income for Year 1 on a pro rata basis (eg 50% if you moved to France on 1st July). Your Year 3 contributions will be calculated on your full year's salary in Year 2 and so on in subsequent years" David Hampshire has a good reputation so I suspect we should believe the above...? However.. I'm not sure whether the 1,100 euros mentioned as the basic level is actually 30 per cent or whether he means 30% of 1,100 euros... After reading comments from others on this forum (Splash Internet and others) I'm not sure how to ensure that the French system actually treats your business in this way... notice the use of "may be entitled" in the first quote above :-) Any helpful comments on simplifying all of this really will be welcomed - the name of an inexpensive accountant who speaks both French and English.. in the Normandy area.. also welcomed. Jane

No 4x4s where I'm going .. you can actually hear the birds singing (at 5am) and there's very little traffic. Perhaps the locals really are the lucky ones - at least they don't miss broadband - they've never even heard of it! I can't wait :-) Jane

Re ebay .. it seems that you can't really do that in France? set up a business and wait to see if it takes off.... EBay is regularly scanned by the IR in the UK, just as other Internet sites are for businesses that may be evading tax. The upside is that, invariably, they haven't enough manpower to do anything about cases that may well prove not to be cost-effective if taken to court. They do however record the information and if your name comes up at a later stage (for something else - eg. an audit on your books that looks suspicious ) they can link the two together. I haven't a clue what they do with regard to ebay sellers in France though! Surely this whole way of treating small start up businesses in France is contributing to their high unemployment figures and thus reducing their overall revenue? I really need to find out more about MicroBics - have to make a decision in the next few days ... I am getting nowhere and I have read so much that I can feel a headache coming on :-) I can empathise with "Perhaps, and I can't believe I'm stating this, It may be better if France stays like this so we will all stay poor and not have to worry about the new model BMW our neighbours just bought." though ... you may be right! Jane

I'm wondering the same thing. Have spent the last two hours reading postings in this forum about taxation for the self employed. Am moving to France in two months and have a small business that brings in less than £3000 gross per year which I was hoping to take with me. Everything seems shrouded in mystery which only an accountant can unravel... Can anyone advise please whether having the business as a MicroBic means that you just fill in a tax return at the end of the year as you do in the UK - or do you still have to pay the huge amounts (quoted as almost £2000 in one posting) in your first year regardless of your income? Many thanks for any help given. Jane