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Closing down & re-starting a business


poppet
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After 3 years of unbelievably high social charges through the MSA we are considering shutting down with them and re-starting under a different heading on the AE scheme. Has anyone done this? Can anyone advise whether its a difficult process or not? Who would we tell? We currently pay charges upfront for this year (which still wouldnt be enough to cover earnings if the same amount as previous years is earnt and therefore another bill for more money in Oct!), would we have to pay them for the full year even if we shut it down?

Any and all info/advice welcomed. Thanks very much.
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Thanks Chris. What are you supposed to do for money during those 10 months though?!!

Was wondering if I would be able to join the AE first as husband is only name on the previous, then have him as a conjoint on there with me. Could that work?
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Hello

You dont say what scheme you are under now, if Micro the difference in charges is minimal particularly after year 3.  You will have been paying for an estimated level of income which if you meet mean you've paid more than you need to and this will be accounted for from this point onward.  The point is the only difference between the two schemes is AE lets you pay as you go, no assumed leves of income no minimum charges, Micro has an assumed level of income and minimum charges BUT after year three these will revert to actuals and any over payments will be taken into account. So, providing you are declaring correctly the difference between the two schemes is a couple of percent, not worth the hassle of what you are suggesting.  You can pay all your charges monthly if that's a beneift to you too.

Give us some more details about your situation.

P

 

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Hi Panda,

He is currently Chef d'exploitation Réel regime - does that help?

Our problem has been that after the 1st year with huge charges we agreed to pay upfront but even by doing that we hadnt paid enough in and ended up with another bill at the end of the year. We then had the amount upped for this year and whilst he has been working all the time, the charges although high (including the other bill from last year that we are hvaing to pay back too) were manageable. Now the work has slowed down and we wont be getting much money in but we still have to pay those huge charges. My thinking is that at least with the AE system, if he hasnt earnt much that month, we wont have to pay.

The confusing thing is, the MSA lady showed me the estimated figures that theyve used to work the monthly charges out for this year and its a 4k less than he earnt previous years so if he had managed to maintain his previous years earnings, we would have had another bill in later this year even though we kind of assumed that with paying upfront we would be OK.

The only thing shes offered is that charges can go on the previous years actuals earnings instead of the 2 years + estimated divided by 3 and then he would be on that for 5 years. But that again wont help us this year as last years would have been higher than they will be this year.

Im very worried by it all :o(
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Nick, I don,t know how this works and I,m still trying to find out. But it is possible for more than one member of a household to do the same activity without having to register as AE twice. I have friends that are AE,s. They have a property management business, they are both registered as doing the same activity, together thus being allowed to earn 64,000 and not just 32,000. This was all setup for them by a French accountant. They do not declare 2 seperate earnings, just one joint. I,m trying to do the same thing myself without having to use an accountant to start with. My French is good but so far it,s not clear on the AE registration site how to go about this. I don,t want to make a mistake that I can,t undo. Don,t know if anyone else knows more. But it does state clearly on their own site that more than one person in a household may do the same thing.

Janey.
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