B&B Sole Income

[Jp1]

Hi All,
Just wondering how many of you out are operating a chambres/table d'hotes as your SOLE source of income ?

We have been for the last two/half years.

Before we first opened we registered with the chambre de commerce as a commercant under the microbic regime, however having registered as a business there are the pension fund and URSSAF contributions to pay which are extortionate ( seems also that we cannot claim anything back from URSSAF being self employed - although could be wrong on this one)
and the pension fund, which for us is probably of no use.

So my question to you is this

Have you gone down this same route and registered with the cdc or do you just simply fill in your tax return under the microbic system at the end of the year, obviously then taking out your own healthcare and retirement plan ?

Any pros and cons with either method that you can think of ?

I would be very grateful for your responses as we are thinking of de-registering with the cdc.
Thanks in advance
regards.
JP

PS Thought I'd post this in a seperate thread here to keep it all in the same place as this subject is being covered in the finance section (CGS) and also this section (rules for table d'hotes)

[Suzyq]

>Before we first opened we registered
>with the chambre de commerce
>as a commercant under the
>microbic regime, however having registered
>as a business there are
>the pension fund and URSSAF
>contributions to pay which are
>extortionate ( seems also that
>we cannot claim anything back
>from URSSAF being self employed
>- although could be wrong
>on this one)

The URSSAF and medical contributions are high, but if your income is low they do at least follow suit - have fallen into the trap that some years your expenses have gone over the not very generous allowance and you are actually paying on a net income you haven't actually earned?? You might check whether you are entitled to some unemployment benefit if you cease work, but this is also age dependant.

>and the pension fund, which for
>us is probably of no
>use.
>
Why? If you have paid in you will get something out; but this is often a killer to contribute to for the small business as at low levels of income it has a lower 'plafond' and doesn't reduce any further if your income is really low. The contributions are increasing every year as the pot is running out and there are new rules being introduced from Jan2004, which I haven't got my head round yet! I think it's something to do with a complementary pension top up which is to become obligatory so the amount will go up. Your pension organisation should be prepared to come and visit you to discuss your position.


>So my question to you is
>this
>
>Have you gone down this same
>route and registered with the
>cdc or do you just
>simply fill in your tax
>return under the microbic system
>at the end of the
>year, obviously then taking out
>your own healthcare and retirement
>plan ?

I can't answer the first; but even if you deregister you won't be able to have just private health care. Everyone living in France now has to contribute to the state scheme first - for non-earners it is based on any other income and means tested; then you have your complementaire top up as before.
I might be wrong but I don't think that a 'non-earner' can actually contribute to a retirement plan as such but there are plenty of savings build up plans about which might provide a pot you can later invest in.
>
>Any pros and cons with either
>method that you can think
>of ?
>
It might be worth your while putting all your questions together and get together a copy of your last 3 years accounts and going to see a good accountant for a one off visit and then perhaps to go to CPAM just to check what your your medical position would be.

Good luck


Suze