lmc

Have you gone over the limit any other year apart from last year?

Hi Réglisse, As a micro you cannot deduct any real expenses at all - not even cotisations.  The abattement is supposed to cover all of your expenses including cotisations. So to answer your question, your net revenue = Recettes - abattement Try this link for more info http://thenakedaccountant.wordpress.com/what-is-revenue/ Lisa

Sorry to question your understanding, but are you SURE this section applies to you? 31 649 euros is already pretty much the maximum turnover that you could have for a microentreprise as a profession libérale which is what you must be if you have this percentage abattement.  That wouldn't leave you a lot of room for manoeuvre! Is there something else that you maybe haven't noticed? Lisa

Hi, I heard of some people yesterday who were refused a bank loan because their work was declared as "saisonnier". It might not be an issue for you but it may be worth bearing in mind. Best of luck. Lisa

dennis, why don't you suggest that the notaire draws up the compromis?  he is an impartial professional and more and more agencies are using this option now as it is more reassuring for purchasers. failing that, agencies generally use a standard pre-printed compromis form.  is yours not one of these? lisa

Hi, You have to do some more paperwork.  Surprised? Assuming that you are an entreprise inividuelle, you need to go back to your CFE and say that you wish to give your activity a commercial name.  They will give you the necessary forms to fill in. Best of luck. Lisa

Connells, It is perfectly possible for you to register in your own right as either a micro (immediately) or autoentrepreneur (as of Jan) and then subcontract to your friend.  Your invoice becomes a deductible expense for him and he has no employer's contributions to make on your behalf. However, you shouldn't be seen to be working SOLELY for him as then you will be considered to just be dodging the employee status so you will need to do some other bits of work elsewhere for other clients too. Best of luck. Lisa

Hi Pumpkin, I strongly recommend that you have a separate bank account to your personal account as it makes things very much simpler from an accounting point of view. You will find that banks charge more money for a professional account than for a personal one so just set up a separate personal account instead.  Also, unless you absolutely HAVE to have a bank card then you'll find it much cheaper if you just have a cheque book.  For my "business" account at Credit Agricole Charente Perigord with cheque book and internet access, I pay just over 3 euros a month. Best of luck with your new business. Lisa

Your understanding is spot-on. The new system is not cheaper.  It is just simplified and the turnover level is now higher. I am still not quite clear on what is happening to all those people who would not actually be liable for income tax but will now be paying it by default once the new flat rate charges come in. Lisa

No JR, that's not how it's calculated (although you are right that it sometimes works out that way or even worse). Lisa

JR, I am speaking specifically from a French perspective and not particularly with regard to VAT. Even micros (and it will certainly apply to AEs as well) still have to keep a record of all their invoices, receipts etc.  Should a fiscal control ever come about then you still have to prove that your purchases are for the business and the longer the gap between the purchase and the official creation of the business, the more difficult this is to prove and the less likely they are to believe you. I do agree that the new AE scheme is definitely going to work best for retirees, students, people with existing salaries etc but even though as you rightly say it still has to be ratified, it will categorically still be a viable option for everybody else too. Lisa

Hi Rose, You are right - with the autoentrepreneur scheme, as with the micro scheme, you can't claim back any real costs. However, should you ever be subject to a fiscal control (which can happen at any point and might be unlikely but you never know) then you still need to be able to supply all relevant and correct invoices, receipts etc. It's OK to buy materials intended for your new business before your new business is actually declared but not too long before.  Make it a MAXIMUM of 3 months and you should be OK. Best of luck. Lisa

P-D, I couldn't agree with you more about the scheme being good for retirees, also for students and people who are already salaried and just want to round off the end of the month a bit. However, for anybody else who wants to set up a small business and work more or less full time, it is noticably different from the existing micro system only in that the turnover levels are slightly higher.  It has the same disadvantages as the existing micro system in that you can't declare a loss and can't deduct real costs. Effectively, anyone who is working in a commercial or artisanal activity is still going to end up giving about 45% of their profit straight to the state and anyone in a profession libérale about 30% and unfortunately it will always be so.  Best just to tell it as it is, I think. Lisa

In terms of contributions, the autoentrepreneur scheme will only be very very slightly cheaper than the existing. It is true that if you don't earn then you don't pay but then if you're not earning anything then you have more immediate problems than how much your contributions are... The fact is that contributions are expensive over here and they always will be regardless of how they are dressed up and presented.  Sorry to be negative but it's because of our contributions that the public services are so good and we just can't have it both ways. Lisa

Hi, You will have to put together a detailed business plan in the same way as you would for a UK bank - forecasts for ingoings and outgoings including cotisations and VAT for the first 3 years, specifics of how much money you can put into the project yourself, proof of some market research and demand for your product, proof of research with regards to "supply" of your product (if you are thinking alternative therapists type of stuff), info with regards to what kind of business you plan to set up (SARL, entreprise individuelle etc) info on insurances, proof of ability to pay a loan back and basically any other info you can put together to make it clear that you have thought your project through thoroughly. Best of luck. Lisa

Brain definitely missing this morning. I won't even try to explain what made me write that but anyway, I completely withdraw it. BNCs perfectly eligible. Apologies.

no I didn't!  that was for martyng. sorry - seem to have temporarily mislaid my brain! lisa

oops!  sorry!  posted that on the wrong thread!

I think there is an issue here in that the OP is talking about a BNC activity for himself (proofreading) whereas the new law, as yet, only applies to BIC activities (commercial and services).  

No problems with them as far as personal banking was concerned but found them definitely not set up for business banking.

Graham, I'm glad you're pleased with the service you're getting and also glad that not ALL the feedback on this thread is going to be negative!! I'm not sure what you mean by "terms of reference".  This is very much a project in development.  They have realised that the need exists and they are prepared to put the funds into satisfying that need.  As to specifying exactly what the need is, it's up to CA customers (also CA ex-customers and people who considered CA but then went elsewhere) to say.  Your PS, for example, is very helpful. They are well aware that they have not always got back to people quickly enough and that the customer has often felt neglected.  They are already working on clearer explanations of products and contracts in English, both on and offline.  I know that not everybody needs the English but lots of people do. They are also open to developing products specifically aimed at the English speaking market - cashback on debit cards for example, buy-to-let mortgages for example (shaky property market notwithstanding). For many people, the difficulty in using CA branches out of their own area has often been a problem.  They are developing a 'remote banking' system that should remedy this to a large degree. I should reiterate that I am talking here about CA Charente-Perigord. Finally, I know that a lot of branches have recently cut down their opening hours and that this has caused inconvenience.  These branches are the ones that had the fewest people actually going in and using the branch so I'm sure you can all understand why it would not be economical to keep them open full time.  The idea is that you can still carry out all transactions such as banking cheques, withdrawing money etc even if the branch is closed. Many thanks to everybody who has taken the time to reply and all constructive criticism is welcome. Lisa

I keep reading lots of stuff about Credit Agricole, some positive and some negative. For anybody who is in the Charente Perigord area, CA are going to be making a big push for their English speaking clients. They have understood that we represent a big percentage of the market and that they have maybe not been as good as they could have been in the past. There will soon be more English advisors (not just English speaking advisors) in the region and a huge effort to provide the kind of banking service that Brits expect. I am consulting on this project so if anyone has any strong feelings or bright ideas then please feel free to post them and I can pass them on. Many thanks. Lisa

Victor, Have a look at the Ciel packages.  They have a variety depending on what kind of business you run.  There is also a package called EBP that people find quite easy to use. You do know, don't you, that although you absolutely have the right to keep your own accounts, they MUST be kept in the French way.  This is quite different to the UK system although if you have UK experience of bookeeping then you shouldn't find it too difficult to get the hang of. Best of luck. Lisa

Certainly banks are always keen for people to use virements as much as possible.  They are much quicker and cheaper for them to process than cheques.

Will is right about this - it does depend on what you do. But it sounds like you're an artisan and that means that whatever business structure you choose then you can expect to pay 40% of your revenue in cotisations.  Usually it's around about 45%. The legislation has recently changed as far as micros are concerned, supposedly to lighten the cotisation burden but in practice it works best for those with very small incomes (less than about 12K) and this is unlikely to be you. Micros are generally not too good to people in the building trade because you often have quite high costs (eg tool purchase) and the abattement allowed doesn't actually cover all of your real expenses.  At least with a regime reel you have the opportunity to deduct real expenses and if you make a loss then you can declare a loss whereas a micro can never declare a loss. Also, if you are at the 18 month stage now then it is the next 18 months that are going to be the most expensive for you (I hope you've put some money aside) and the third year will always be the most expensive for you whether you transfer to micro now or not. I'd grit your teeth and stick with the regime reel in your shoes. Best of luck. Lisa