COTISATIONS - MICRO ENTERPRISE

[Catrina Money]

I am in my second year of trading as a micro enterprise and paying cotisations based on the assumed income set by the government.  However,  the "assumed income" is way above what I am actually earning, and consequently the cotisations are dispropotionately high.  I realise that next year my payments will be based on my first years figures, but I wonder if any allowance will be made for the "over payments" I have made in my first two years of trading, ie, will I get any money back!?

Perhaps someone has experience of this situation?

[Nick Trollope]

No. This is one (of the many) disadvantages of the micro.

 

[Danny]

[quote user="Catrina Money"]I am in my second year of trading as a micro enterprise and paying cotisations based on the assumed income set by the government.  However,  the "assumed income" is way above what I am actually earning, and consequently the cotisations are dispropotionately high.  I realise that next year my payments will be based on my first years figures, but I wonder if any allowance will be made for the "over payments" I have made in my first two years of trading, ie, will I get any money back!?

Perhaps someone has experience of this situation?
[/quote]

If you have paid too much, you will either get a refund (as I did this year! nice 600 euro surprise - I hope they don't want it back as it is now spent!) or it will be taken in to account for the next year and your rates will be adjusted accordingly. For the first two years you do not have anything to base your real payment figures on so they have set rates to pay.

have a look at Lisa's video on http://www.thenakedaccountant.fr/ She posts on here sometimes. It may be helpful for you. Yes, you have to register to watch but it is free! and useful information.

Danny

 

[clarksinfrance]

You may be able to register under the auto-entreprenneur scheme, which then means you pay your cotisations (23%) on your actual turnover, rather than an assumed turnover.

I also have a micro, and have swapped, it has made a huge difference (downwards) in my cotisations.

[LisaJ]

We are in exactly the same position as you, Catrina. When we got the bill for this year's (second year) cotisations, it was for more than we had earned last year or were likely to earn this year. We went to RSI with last year's spreadsheet of income and they re-calculated our cotisations for this year based on last year's income. Despite what people have said, they can re-calculate based on real income under micro-entreprise, but you have to go and see them.

Good luck,

Lisa

[Catrina Money]

Thank you all for your advice - hopefully I can now resolve this situation, it's not a nice feeling to be working and then seeing all your income going out in cotisations!

[Frank]

Hi Catrina,

 If it helps, I too have had both my first and second yr cotisations re calculated based on estimated turnover.  The chap told me that if I paid too much then I would get a refund but also, if my turnover exceeded the 're calculated figure' then I would receive a bill for the difference.  It's one of those situations if you 'don't ask' you don't get, but if memory serves, it is also mentioned  in the leaflet that comes with the cotisation bill for the year, that you can have the figure re calculated.  Good luck with getting it sorted

Jetlag

[steve]

I am afraid with MSA they say its impossible - we changed from a Micro after 2 yrs to a 'real' but they will still take the first 2 years 'declared turnover' + the 3rd years profit (much much smaller) and calculate year 3 contributions as an average over 3yrs - hence our payments are almost the same as our revenue for 2008!

sods

Steve

[chessfou]

[quote]It's one of those situations if you 'don't ask' you don't get[/quote]

You should only need to ask if you have problems with cash flow. Assuming you can cope, it all comes out in the wash - as you send in your forms, so they do the re-calculations (on an annual basis). I haven't asked; nonetheless, I have "got" (the cotisations have been adjusted although I suppose it does require some accurate form-filling).

[poppet]

Digging up this old thread.............

We are on 3rd year of trading under MSA and are paying cotisations upfront each month for this year. However, work has run out and we are still having to find the money to pay these charges. Has anyone been in this situation and been able to stop paying them? I think that hvaing paid 6 months of them we have probably paid more than we have earnt anyway!

Cheers

[poppet]

In answer to my question, lady at MSA says you cant stop paying them even if you earn no money with which to pay them. Am interested to learn where she thinks the money will come from then lol.