Changes made to auto-entrepreneur

A NUMBER of changes to the auto-entrepreneur scheme have come into force.

Firstly, turnover ceilings have risen slightly. The scheme is now open to sole traders earning less than €32,100 in the service industry or a profession libérale and €80,300 if your job involves selling.

From April 1, new artisan (trade or craft) auto-entrepreneurs have to join an official trades register at the chambre des métiers. This is called immatriculation au repertoire des métiers.

They will not pay any associated fees to the chamber in the year of creation of the business and in the two following years.

They will also continue to be exonerated from having to take a paid-for training course with the chamber when setting up.

These changes do not affect people with a mixed business where the artisan element is only secondary.

Exoneration

The taxe professionnelle is being replaced with a new tax called a cotisation économique territoriale this year - but auto-entrepreneurs will still be exonerated from this in their first year. (See page 36 for details.)

The exoneration can also apply to the next two years but only if you opt for the simplified method of paying income tax in instalments (le versement fiscal libératoire de l’impôt sur le revenu).

Businesses must declare their wish to benefit from the temporary exoneration at the local centre des impôts (tax office) before the end of their first year, on a form available from the office.

A new complication has also been introduced regarding this tax exoneration - in theory you now cannot have it if you, your spouse, pacs or civil partner or immediate family (parents or children) did a similar job in the three years preceding the creation of your auto-entrepreneur business.

The Connexion publishes a helpguide on the autoentrepreneur scheme priced €5. Click here