Earning a Living

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Re: AE & taxes

Hi Will,
The booklet points to a part of the site www.impots.gouv.fr and follows the following tabs Professionnels>Vos preoccupations>Creation d'Activity.
I have had a brief look and can find no reference to TVA and "herbergement avec prestations" so I guess the system has changed since the publication of the booklet in 2009.
Something else for the recycle bin.
PS The title of the brochure is "loueurs en meuble non professionnels" and I picked it up from the local tax office a while back.
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Re: AE & taxes

Thanks for that HB. It shows how quickly tax matters can change, then apparently change back again.

It would still be interesting to get some input from somebody, like Q, who currently runs a B&B serving meals. He would also be able to answer the question regarding taxe d'habitation. My recollection is that it's not affected - though a 'tourist tax' operates in some communes, and you do of course need to make sure your house insurance covers B&B risks.

 

 


Will

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Re: AE & taxes

Hi
We have a gite complex and are registered under AE - for the last year and a half we have been declaring under the 12% (vente de merchandise (sp?)) - we clearly identified that we were a gite business ... no come-back.
Not sure why there should be a difference between chambre d'hote and gite, but I don't know enough to say that there is not.
...
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Re: AE & taxes

Am I right in thinking that as a family with two children, as long as my husbands salary and my earnings do not go over 75k I can register and opt for PAYE at 23% under the AE scheme.

Lollie
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Re: AE & taxes

Lollie,
PAYE does not exist in France. PAYE is how most salaried people pay income tax in the UK. In France income tax is not Paid As You Earn but is paid after the year is complete and you declare your earnings and the tax office send you a demand.
It is also declared as a family unit rather than individually. So all your income is put together (including your income as an AE) and declared as a family income.

Income tax is completely separate from cotisations or social charges which I think you are referring to These are paid by the self employed. In a 'micro entreprise' and under the AE, it normally works out at about roughly 23 % of your turnover.

Danny

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Re: AE & taxes

PAYE in the lose term, ie pay my tax and cotisations monthly or quarterly as is permitted under the AE scheme.

Having paid taxes in France as a family unit for over 7 years I am well aware of how it works. Still it is a good explanation for people who are perhaps looking to move to France or who are in their first year here.
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Re: AE & taxes

 Lollie wrote:
Am I right in thinking that as a family with two children, as long as my husbands salary and my earnings do not go over 75k I can register and opt for PAYE at 23% under the AE scheme. Lollie

That is more or less the case. By 'PAYE' I am assuming that you want to pay your cotisations and taxes together in a single quarterly or monthly payment, in which case the rate is 23% if you are providing a service under a BIC regime - different rates apply to other types of business. If your total household figure is above a certain figure then you can only pay the cotisations, the tax part has to be declared with your other income on your normal tax declaration.

Conversely, if your income is likely to be too low to actually pay tax, it is pointless opting to pay that extra 1%-2.2%.

The figure you quote is actually slightly below the real amount: from the guide at www.lautoentrepreneur.fr

Il peut opter pour le versement libératoire de l’impôt sur le revenu, à condition que le revenu de son foyer fiscal ne dépasse pas 25 926 par part de quotient familial en 2008, soit :

- 25 926 pour une personne seule ;

- 51 852 pour un couple ;

- 77 778 pour un couple avec deux enfants.


Will

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Re: AE & taxes

By my income being too low to actually pay tax, you mean the 'household' income? Mine certainly would be, but with hubbies salary no chance.

I dont like big bills at the end of the year!

Thanks Will.
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