New Auto-Entrepreneur scheme

[Sunday Driver]

Here's a useful site concerning the new scheme.  It also contains a helpful auto-entrepreneur 'kit' in pdf form which gives lots of specific detail.

http://www.auto-entrepreneur.fr/

 

[mint]

Thanks, SD, for coming up with the goods; as you invariably do.

 

[Chancer]

Is the catch all wording "y comris en etant déjà salarié ou retraité" ?

Editted

Yes it is after having read the PDF, twould be good for me but only in another 16 years time and looking at the boxes to tick for retraité I dont think a foreign pension or private early retirement one will cut the mustard initially although no doubt that will be chellenged in time.

It is for those conmfortably employed or retired wishing to start one or more sidelines without fronting up cotisations or looking over ther shoulder.

Interestingly one can have several different activities under the AE scheme not forgetting of course ones primary employment or retirement.

Clearly active people these retired folk [:)]

[Albert the InfoGipsy]

JR, "y compris" just means "including", not "only".

I read it as being open to anybody who does not already have a registered entreprise individuelle for the same type of business.

I copied this from the site in question:

Qui peut devenir

auto-entrepreneur ?

Ce statut est ouvert aux étudiants, salariés, professions libérales, retraités, demandeurs d’emploi.

Il semble qu'il ne sera pas possible d'arrêter une activité

existante pour la redémarrer sous ce nouveau statut.

I definitely qualify as a profession liberal (IT consultancy) and demandeur d'emploi is a pretty broad catch-all.

I've also read the actual text of the law and the government presentations on the subject. All of them point to the new statut being available to all.

[Chancer]

Having made the mstake with "y compris" perhaps when I read the PDF is was like a self fulfiling prophecy but it certainly only seemed to speak of retired or employed, no mention of job-seekers and I am sure that on the specimen application form you had to cross one of the two boxes, retired or salaried.

I do hope that you are right Albert, have you read the PDF? - what is your take on it?

Forget that I have just reread the last line of your posting.

[LesFlamands]

Thanks SD for posting the link. I see that the new statute doesn't start until 1st Jan 2009 and that you can't change from a micro entreprise to Auto entrepreneur (in the same activity) just to take advantage of the slightly lower Cotisation (23% instead of 24.6%).

I then clicked on the micro entreprise link and it said this:

De plus le plafond du régime de la micro-entreprise a été relevé de 76.300 à 80.000 € pour les activités de reventes et de 27.000 à 32.000 € pour les activités de prestations de services lors du vote le 17 juin 2008 de la Loi de modernisation de l'économie (LME) à l'assemblée nationale (en 1° lecture).

So does this say that the 'plafond' has gone up as from the 17th June?

Edit: I've just found this; La loi de Modernisation de l'économie a été adoptée le 22 juillet 2008, promulguée le 5 août 2008.

I downloaded 'La loi de Modernisation de l'économie' but it's 74 pages and I can't make head nor tail of it!

[Albert the InfoGipsy]

JR,

I've read part of the PDF -- I'm on holiday with an Asus Eee, which has a tiny screen. I have noticed that the turnover limits are out of date (27K instead of 32K for non-commercial) so I wouldn't be certain about other details being definitive. I've got a feeling that there may be two or more different registration forms depending on where the applicant is already registered for social security purposes.

The significant part of the Loi pour la Modernisation de l'Economie for this purpose is actually Section 1, which introduces the autoentrepreneur statut.

I copied the statement below from Sarko's own site. The emphasis is mine.

“L’autoentrepreneur est une personne désirant mener une activité

professionnelle indépendante, à revenus limités (80.000 euros pour une

activité commerciale, 32.000 euros pour une activité de services), à

titre principal ou parallèlement à son statut de salarié ou de

retraité."

http://www.sarkozynicolas.com/lautoentrepreneur/

[Rose (& Greyman)]

I'm hoping some of you with better French than I can help with a point that's puzzling me about the new auto-entrepreneur scheme.

If, as it appears to say, the 23% rate (for service businesses) includes cotisations AND tax how does this take account of the sliding tax scales. If my earnings are so low that I would be paying no tax surely I'm being penalised ? And if I have other income is the whole of my tax banding available for this or is some of it taken up by auto-entrepreneur earnings ?

I am planning to find an accountant to advise on a business venture next year but it would be helpful to have some knowledge of this scheme under my belt and I just can't get this straight in my head. Any help would be appreciated.

[Will]

The whole point of the scheme is that, for simplicity, it avoids things like sliding tax scales and has just a standard percentage deduction. If you feel you would be better off under the standard taxation regime, you are quite at liberty to opt for that.

It's much the same question as to whether you are better off with a micro regime, which takes no account of TVA, or under réel, which allows you to charge and reclaim TVA. Some people are better off with one, some with the other.

[mint]

Will, you haven't answered Greyman's query about whether the tax band would apply to "other income".

Figures are definitely not my "thing" and I, too, am waiting for someone (SD, would you be so kind?) to give me the Janet-and-John version.

[Will]

I think that's one of several unanswered questions about the new scheme. There may be an answer lurking somewhere in the full legislation, but as that has not yet been introduced few people will know it.

I would think that the income would almost certainly count towards your total taxation bill, which takes into account worldwide income. However, I would imagine that it should be treated in much the same way as income from another country on which tax has already been paid - in other words you won't be taxed on it again, but it may affect your income tax band when added to the rest of your income. However, an accountant may have a different view - we'll just have to wait and see how it works.

[mint]

Thank you for that excellent explanation, Will.  Why, even a dumbo like me can understand that![:$]

[Rose (& Greyman)]

Yes, thanks Will. That makes sense, just wanted to be sure I hadn't missed something somewhere. I'll get my accountant to check it out when the full details are released. I'm hoping my income will not be so low as to be outside the tax bands anyway !

[Tocanepauli and Fan]

Ok guys

Question time for the (i hope) more knowledgeable than me!. This auto-entrepreneur scheme interests us BUT will it work if we are to set up a multi-functional business model? In that I mean Chambre (or table) d'hotes, possible language centre/courses, a food/small commerce sideline (maybe combines) using our centre-ville (not sure exactly what yet, but if anyone has any great ideas let me know and I will add it to our already long, undecided, list!) and a few other things we already have in mind - not to make a fortune but just to earn enough and have some "fun" doing it. We would ideally like to keep it all under the same commercial "hat" and not have half in the "metiers" and the other half in the "commerce sections. OK Would this scheme work for us (even tho it hasnt been finalised) or can someone suggest another scheme for us. We want to keep it as simple, yet flexible, as possible. Cheers Tp

[parsnips]

[quote user="Will"]

I think that's one of several unanswered questions about the new scheme. There may be an answer lurking somewhere in the full legislation, but as that has not yet been introduced few people will know it.

I would think that the income would almost certainly count towards your total taxation bill, which takes into account worldwide income. However, I would imagine that it should be treated in much the same way as income from another country on which tax has already been paid - in other words you won't be taxed on it again, but it may affect your income tax band when added to the rest of your income. However, an accountant may have a different view - we'll just have to wait and see how it works.

[/quote]

   On the site" auto-entrepreneur.fr  charges social et fiscal"- it explains that the "micro-fiscal" part of the auto- entrepreneur is not available for individuals whose foyer's" revenu fiscal de reference" for the previous year(2007) exceeds 25195€ per part of the "quotient familiale"-- it further explains that the deductions under the monthly schemes are approximately the same as those of the third "bareme" of income tax which would be due on this income if taxed normally. So it would appear that if declared as taxed income, unless you are liable at the third bareme rate, you should get the tax paid on the micro-entreprise set off against other income tax due, or possibly a refund. It should become clear when the various guides to completing the tax declaration are published early in the new year.