How much in cotisations?

[chessfou]

If you are thinking of working as an Entreprise Individuelle you can use a calculator on the URSSAF site to work out what your cotisations are likely to be.

http://www.urssaf.fr/profil/independants/services/calculer/acces_direct_01.html

[Chassaing]

This may help someone, good luck!

http://www.special.sudouest.com/article.php3?id_article=3577

[Panda]

Hi

Has anyone tried this calculator, I am already registered but was interested to se what it says I should be paying and in 2010 (a year it doesn't ask for projected earnings) it says I will pay 80% of my gross income in cotisations!  I've clearly done something wrong, perhaps someone else could try it and enlighten me?

Panda

 

[chessfou]

[quote]Has anyone tried this calculator, I am already registered but was

interested to se what it says I should be paying and in 2010 (a year it

doesn't ask for projected earnings) it says I will pay 80% of my gross

income in cotisations!  I've clearly done something wrong, perhaps

someone else could try it and enlighten me?[Panda][/quote]

If the income is small, then you'vr done nothing wrong. See, for example:

"However, even if you do not earn enough to pay tax (20,000€ profit per year), you will still have to pay hefty cotisations.

Take for example, John Hughes, who by the end of his second year of

being in business as a gardener had a profit of €10,000 on a turnover

of 20,000€. That year he paid €5,000 in social charges. The next year,

his third, he had a similar turnover but paid even more cotisations - about €7,000."

http://www.frenchentree.com/france-employment-work-jobs/DisplayArticle.asp?ID=20544

[nephilim]

Might not be all doom and gloom, in the same article but further down is this:-

"Most recently it was announced that the system of cotisations for micro-enterprises will be changed so that charges will be calculated on a pro rata basis based on actual annual turnover (instead of the current system where you pay 3,000€ - €4,000pa regardless of turnover)."

[TC]

I am hoping my calculations are wrong too.

I have posted the same figure forecast for 2009 as for 2008 and the cotisation increases four fold. As for 2010 I despair. Please tell me I can offset against the required amount otherwise I fully understand the French mentality for not doing more than is necessary, but what a bizarre way to run a country. Screw the people who want to get up and make a living. Bizarre.

P.S I am not new top France just new to running a larger business and knew cotisations were high but over 60% of GROSS income is untenable surely.

 

[chessfou]

Note that cotisations are based on forfaitaire figures (ca. €6k+ year one and ca €8-9k year two). If you are being unfairly hit, you can ask (almost insist) that your actual figures are used.

As for unreasonable proportion of gross; well, taxes (at least income and council) are rather low and the money has to come from somewhere to pay for the health service, fantastic infrastructure and other good benefits (note that a chunk of the cotisations goes towards your pension).

[Panda]

I think it's difficult to take the figures from the calculator as as Chessfou says this is making some assumptions and including a 'set' figure.  I'm not going to panic (yet) but go talk to my accountant about it.

[TC]

Me too. I have been reading up and I was wrong it isnt based on gross income it is based on income after running expenses. So wondering how I can get my new range cooker  offset against income???????? Only joking.

[Will]

Quite right. Cotisations are paid on taxable income - so get a good accountant to help keep your income low. It's amazing what they can offset. Especially bearing in mind that every euro saved on taxable income can be worth 1.6€ or more in your pocket. People begrudge accountants' fees, but believe me they are a worthwhile investment. An accountant can also arrange reduced payments if your income is known to be low, though if you underestimate the amount payable there are penalties.

But be warned that those who take your cotisations are rather less than rapid in refunding overpayments (which even the best accountant cannot always avoid, but he can at least identify). Having become due for about 800€ from a caisse de vieillesse as from August 2006, the cheque arrived yesterday - almost exactly 14 months after. And no interest or penalty was included.