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Can I start an AE whilst working?


rmelrose

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Hi

I am planning to start my new business here in France. I would like to provide services and advice to French and Expats. The trouble is I'm not confident I can being in enough revenue to survive for the first couple of years.

Can I continue to work in my normal job and set up and run a business at the same time?

It will take a long time for me to build up a client base.

If yes How do I declare my Taxes? as normal or through the AE system.

Does my annual income count towards my max turnover of 32500eu?
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[quote user="idun"]Sorry but this post has made me smile, you are asking us for advice when you are going to be setting up an advice service for expats and charging them.

Actually 'I'm out'.[/quote]

I can't see why it made you smile? The OP did not say what sort of advice he was providing, it could be raising chickens or making model aircraft or where to buy G9 bulbs.

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I am stuck on this question though and I would appreciate a little help.

Maybe from someone who knows the procedure a little better.

Idun: Fair Point!

We all have to start from somewhere though and It would be very arrogant to assume I knew everything.

And you can always find out if you ask nicely.
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The AE scheme was set up just so that enterprising people in full-time employment could legally start a small business on the side, with the hope that it would grow into a full-scale business. Total income is irrelevant, it's the AE income that is limited.

The only thing that isn't clear is whether the OP's main job is in France or not. I think a French AE business alongside English employment, for example, would be a non-starter, for various reasons.

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[quote user="Will"]The only thing that isn't clear is whether the OP's main job is in France or not. I think a French AE business alongside English employment, for example, would be a non-starter, for various reasons.
[/quote]

Could you expand on that, Will? Assuming that everything is duly declared, that the AE work is actually done in France and that the OP has a French address I can't see any show-stoppers in the rules.

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rmelrose, all the evidence points to many more Brits selling up and leaving France, than arriving, so one needs to be cautious about relying on the Brit expat market. With little sign of the £ regaining it's strength against the euro, falling UK house prices and the weak state of the British economy, it is unlikely we will see a recovery in Brits buying French property, for some time.
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[quote user="Albert the InfoGipsy"]

[quote user="Will"]The only thing that isn't clear is whether the OP's main job is in France or not. I think a French AE business alongside English employment, for example, would be a non-starter, for various reasons.

[/quote]

Could you expand on that, Will? Assuming that everything is duly declared, that the AE work is actually done in France and that the OP has a French address I can't see any show-stoppers in the rules.

[/quote]

My understanding is that the AE scheme applies only to French residents. Of course, there are various ways of defining 'residence' - I was thinking more in terms of social security than tax. It's the sort of question you need to ask a properly qualified person rather than relying on forum advice (or, even, HMRC or the French tax office).

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I don't see that operating an AE (or a traditional Micro or other entreprise individuel) would be a problem alongside UK employment, per se. You declare the approriate amounts in the two countries and pay social security (NI / cotisations) on each. As I understand it you'd be defined as a French residence by having a French address and making a tax return. Of course, as you know only too well, that doesn't stop you being a UK resident (with its variations) too.

I don't claim to be 'properly qualified', but if you excl;ude HMRC and the French tax office as well then it starts getting difficult to identify anyone who could advise.

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Thanks for the advice guys.

I have been living and working in France for the past 4 years. I would like to have my own business in France.

I'm not yet sure what business I want to go with yet. I agree the EXPAT market is a small market and not worth pursuing.

I have good experience and come from a background of mechanical engineering.

I travel a lot with my job so that is my motivation for becoming an entrepreneur.

I am also in my 30's and a long way off retiring so I'm looking for a medium size business.

Thanks again for your imput.

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[quote user="Will"]The only thing that isn't clear is whether the OP's main job is in France or not. I think a French AE business alongside English employment, for example, would be a non-starter, for various reasons.[/quote]

http://www.federation-auto-entrepreneur.fr/auto-entrepreneur/apce/faq-un-ressortissant-tranger-peut-il-tre-auto-entrepreneur.html
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Thank you for the link, which I have made clickable here.

It is clear from the above that a foreign national can start an AE business in France, which I don't think was ever disputed. I'm still a bit uneasy, despite what Albert says, about non-resident status, which thankfully doesn't apply to the OP.

It is true that as soon as you start a business of any sort in France then you become fiscally resident (though you can still be fiscally resident elsewhere, and where you actually pay tax is governed by whatever double taxation agreement is in place). It's more the social security aspect that concerned me because I can see that opening the proverbial can of worms, and it could prove very costly to pay charges in more than one country for no benefit. One would most likely get away with it but I can see a possibility of confusion when it comes to things like E forms or retirement benefits. Which is why I suggested taking proper advice, and certainly not relying on either forum speculation or the tax/SS officials in either country, because they only know about their own systems (and don't always give correct advice on those) and do not have the bigger picture.

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