Self-entrepreneur status allows you to work independently with few administrative restrictions. This status is subject to several conditions. A contribution reduction is planned for the second half of 2022.
Since January 1, 2009the auto-entrepreneur program makes it possible for everyone Start your independent business. Administrative management and accounting are extremely simplified, which has attracted many people with very different profiles. Self-entrepreneurs are dependent on the micro-enterprise tax regime. A regulation with simplified formalities is subject meet a certain sales limit. This program allows you to pursue a one-time or full-time job independent of the administrative constraints of a company.
The self-employed must Pay contributions to Urssaf monthly or quarterly. The calculation of the contributions depends on the turnover. It is also tied to a phrase that depends on the activity being performed:
- The applicable rate applies to purchase, resale or accommodation 12.8% of sales
- For the provision of manual or commercial services and the exercise of non-regulated liberal professions: 22% of sales
- For a freelance activity covered by Cipav under retirement insurance: 22.2% of sales
- The contribution to vocational training (CFP): rate of 0.1% for the general case, 0.2% for liberal professions covered by Cipav in the old-age insurance and 0.3% for handicraft services
- Income tax relief payment : Valuation 1%, 1.7% Where 2.2% depending on the situation
Since January 1, 2020all self-employed are dependent on the general social security system, which now administers social security for the self-employed.
In addition, Prime Minister Elisabeth Borne announced a reduction in social security contributions for the self-employed in her keynote address to the National Assembly on July 6, 2022. This is part of the Purchasing Power Bill to be debated in Parliament in July 2022. Specifically, it consists of a reduction in sickness and maternity contributions for the self-employed if their annual income does not exceed the minimum wage, ie EUR 15,632 (equivalent to EUR 1,645.58 gross or EUR 1,302.64 net per month). According to the government, the beneficiaries should be able to save 550 euros a year. The justification for the law states that craftsmen, merchants, all liberal professions as well as agricultural managers and micro-entrepreneurs must be affected, “that is, around 2.25 million people”. This decline is expected to be sustained.
Do car companies pay VAT?
The car company benefits from thisa VAT exemption provided that a certain turnover threshold is not exceeded:
- €34,400 for the provision of services with a tolerance threshold of 36,500 euros in the first year of the deductible
- €85,800 for sales activities with a tolerance threshold of 94,300 euros in the first year of the deductible.
Do the self-employed pay taxes?
self-employed must pay income tax either in terms of their sales industrial and commercial benefits (BIC) or non-commercial benefits (BNC) according to their fields of activity. The declaration is made at the same time as the payment of the Urssaf contributions, monthly or quarterly. The following rates apply to the severance pay:
- 1% for the sale or provision of housing
- 1.7% for the provision of services
- 2.2% for non-commercial benefits.
If they exceed the income limits, self-entrepreneurs must be taxed under the current rules. Additionally, below their thresholds, they have the opportunityDecide on the actual tax regime. In these cases, the option must be selected no later than the last day of filing the tax return for the results of the financial year, i.e. in May or June of the following year.
Is it possible to combine self-entrepreneur and employee status?
It is possible to combine the status of self-entrepreneur and an employed activity. This entrepreneurial activity can be pursued alongside gainful employment or during unpaid leave to set up a business. In order to be able to carry out this entrepreneurial activity, certain requirements must be met.
- The activity must not compete with that of the employer
- The employment contract does not prohibit self-employment
- Compliance with non-competition and fairness rules that may be contractually stipulated
Threshold: From which upper middle limit may a self-employed person not be exceeded?
Entrepreneurs don’t have to do that not exceed a certain resource limit if you do not want switch to sole proprietorship. The resource ceiling for 2022 (compared to 2021 income) is:
- €176,200 for commercial and accommodation activities
- €72,600 for the provision of services and the liberal professions
Nevertheless there is a tolerance if exceeded by one year.
Can auto entrepreneurs still benefit from the ACRE program (formerly ACCRE)?
Aid for starting or taking over a business (ACRE and formerly ACCRE) was a French scheme automatically paid to car entrepreneurs Development of the creation of a micro-enterprise. Since the decree of November 22, 2019, the ACRE is no longer paid automatically and its benefit is reduced to only 1 year instead of the previous 3 years. Today it is necessary to meet one of these conditions benefit from ACRE.
- Let Pôle Emploi compensate you
- Be an unpaid jobseeker who has been on the jobseeker list for more than 6 months in the last 18 months
- Receipt of reintegration benefit (ARE) or job security benefit (ASP)
- Receive the Specific Solidarity Allowance (ASS) or RSA
- Be between 18 and 25 years old
- be under the age of 30 without compensation or be recognized as disabled
- Start a business in a sensitive urban area (ZUS)
The main development of this new status lies in Simplification of the creation process. To become self-employed, a simple online registration is enough. To join this scheme, the creator of a new activity must go to:
After registration, INSEE communicates with the new car entrepreneur his Siret number. Craftsmen, merchants and freelancers who fall under the CIPAV (cross-occupational provision and old-age insurance fund) are now covered by the self-employed regulation their turnover remains below a certain upper limit.
Since 2016must the car entrepreneur Register your company in the Trade and Companies Register. He must too pay the business property tax (CFE), making the system less and less beneficial and more complicated at the management level. There are many car entrepreneurs who do not have any activity (they already have a business at the same time), but who bear high costs.
Based on the taxes set out below 2015Auto companies are now required to do this pay the CFE. However, self-employed entrepreneurs engaged in fishing and farming activities are permanently exempt from the CFE. The same applies to painters, sculptors, engravers, draftsmen, photographers, writers, composers, lyrical and dramatic artists.
Since 2018there is an exemption from commercial real estate tax for micro-enterprises that report an annual turnover under 5,000 euros. In addition, new companies are not subject to the CFE in the year of their incorporation, regardless of the opening date of the first financial year. The list of all exempt companies can be found in Articles 1449 to 1466F of the General Tax Code.
The self-contractor must file a CFE declaration before January 1st of the year after the incorporation of the company using the appropriate form. Thereafter, no annual declaration needs to be made, except in the case of a change that is likely to change the amount of the contribution. You must then file a 1447-M statement before the 2nd business day after May 1st.
What is a self-employed person’s Kbis statement?
Self-entrepreneurs who carry out a commercial activity their kbis extract by post after their declaration. Receipt of this document is acknowledged the legal existence of their activity. Self-employed people who carry out a non-commercial activity (in particular all so-called intellectual activities) do not need a Kbis extract to carry out their activity. Self-entrepreneurs who engage in a craft activity receive another document called Extract D1.
Car entrepreneurs have to be paid to process bills for your customers. These invoices contain the customer’s name and address, the self-employed person’s SIRET number, the unit price and the total price requested, and the payment term. Subject to compliance with the maximum limits, the invoice does not include VAT. It is possible to use this invoice template for self-entrepreneurs.