Gite business inactif?

[Celestine]

Hi all,

I did post this in another section about health cover - Cooperlola was very helpful but didnt know the answers and suggested I posted here, so here goes:

My friends have been here for 3 1/2 years so their E106 ran out some time ago. When they tried to apply for their carte vitale they were told to wait until they registered their gite and got a siret number. This they have done and gone back to get their carte vitale but with the new rules they have been refused. The gite is classed as inactif even tho they pay tax on it. They have been quoted 4500 for private 70% health cover for 2 adults, 2 children - which they cant afford. If they dont get the private cover, is this classed as illegal? Would they still get treated if they had to go into hospital? Why is a gite with a siret number classed as inactif? They have been steered in the direction of Gamex (sp?) now - fingers crossed they get some answers!

Can anyone shed anymore light on this or has anyone had similar problems please?

[Panda]

Hi (copied form the other thread)

This has been discussed in detail before, your friends have probably not set up the gite business as their main income, just a side line .  You still get a siret but it's classed as non-professional (I know this because I did the same thing out of choice).  They would know if they were paying into the health system as they would have received bills from RAM and URSSAF or the like and would be paying a minimum of 3.5k in cotisations.  The good news is that someone on the forum reported that the new scheme of only paying a percentage of income has started now so charges may be lower for them.   

They should consider though how much the gite business brings in, if not much then they might be better off to take private health cover until they been resident for 5 years when they would be eligible for CMU entry, which from what you say shouldn't be too long.   If they register the gite business now they will always be paying charges on it, with the private cover at least there is a short term end point.

Ask them how much they pay in charges, we will then know if they are fully registered or not.

They need to seek some professional advice, I think they should see an accountant, it would be money well spent.

Panda

[Jo Taylor]

What were they doing for health cover after their E106 ran out and up to Nov. 2007?

If they were in the system and paying CMU (which is the case with most of those with gites who hadn't registered as a fully-fledged business) up 'til November last year they should still be entitled to a carte vitale. It's a bit difficult without knowing exactly what their situation is / was.

[Rupert]

Copied from

You quote these people as saying they can't afford the private cover, this would perhaps indicate they they are of limited means and that the Gite income though relatively small my be their main income?????.

Isn't it the case now that if the Gite income represents more than half of their total income then they must register and pay full cotisations anyway. Even is this is not being strictly applied in their area at the moment, I believe it is in some. Therefore it seems to me they should bite the bullet and get registered  with the Chamber of commerce now. They will pay 11%???? of their turnover, but in return get full social benefits. If they don't and there is a retrespective crackdown then they could well end up paying twice.

[Panda]

Hi

It is true that if it's your  main income you should register as a full business, cotisations will be at least  (could be more)  25% of  gross income though  not 11%.  In the Vienne I had to really go to some lengths to have my gite business recognised as non professional so it is obvioulsy different across regions as some people seem to have the reverse case where all are registered as non professional unless stated otherwise.  In my case I had a full other income and it too was registered but they still wanted me to fully register the gite, they did back down in the end but it was by know means simple.

Panda

[Celestine]

Thanks to everyone thats helped with this, I have passed the link over to my friends for them to read thru. Youve all been very helpful and theyvenow got some good info to go on.

[Joanna]

If your income from the business is very low you'll have to continue paying URSAF but a few months later you'll get a nice little rebate (or quite large one).  Quite why you have to pay then be refunded is beyond me but at least they do give it back.

[Rupert]

[quote user="Panda"]

Hi

It is true that if it's your  main income you should register as a full business, cotisations will be at least  (could be more)  25% of  gross income though  not 11%.  In the Vienne I had to really go to some lengths to have my gite business recognised as non professional so it is obvioulsy different across regions as some people seem to have the reverse case where all are registered as non professional unless stated otherwise.  In my case I had a full other income and it too was registered but they still wanted me to fully register the gite, they did back down in the end but it was by know means simple.

Panda

[/quote]

What do you mean by Gross Income? Turnover or net profit?  If you opt for the Micro Bic regime then one is automatically a function of the other. i.e net profit is 29% (correct still?) of turnover. If you were to be charged cotisations of 25% of your turnover then this would equate to nearly 90% of your net profit, which is a bit steep even for France. So, I was led to believe that you would pay 11% (ish) of your turnover, this equates to 40% (ish) of your net profit. Hopefully somebody will know the exact current figures.