THE body responsible for collecting firms' social charges, Urssaf, is keen to help English-speakers understand their responsibilities.
Following our report last month, when officials told us they have tightened measures against non-declaration or under-declaration of business activity, the Dordogne branch has responded to readers’ questions about the rules.
We print a selection of the questions and answers here.
Registration
CAN someone carry out a French-based business while registered as a British business? Should I denounce them? I.B.
No, they cannot do this and you could denounce them to Urssaf confidentially. Anyone working for themselves in France must pay social contributions in France. If such a business is not registered here there can be legal penalties.
I HAVE been told I can only stay registered as an auto-entrepreneur for three years - is that true? J.O.
No, though if you are an artisan and started after April 1, you will need to pay chamber of trade fees from 2013.
Payments
I AM struggling financially. If I talk to my Urssaf is it possible to have respite from the charges payments that are due? G.L.
Depending on circumstances, it is possible to ask for a delay and to be offered arrangements to spread the payments out over an agreed period.
Controls
IF SOMEONE is checked by Urssaf, how many years back do they go? How long do you have to keep paperwork? Are electronic documents acceptable? M.B.
An inspection looks at the last three calendar years but most documents have to be kept for 10. Some have to be kept for as long as they are current, for example work contracts or an agreement that an employee will benefit from a share of profits, or an employee’s payslips. Electronic documents are acceptable.
Language
I WORK mainly with British clients in France and so most of my bills are in English - is it a problem if I am inspected? S.T.
Yes it is - only documents meeting French norms are acceptable. For example, bills should be written in French, with an additional translation in English if necessary.
Your accounting could be rejected because the documents are not comprehensible or the inspector might ask you to pay costs of him or her using an official translator.
Social security
I PAY social contributions as an auto-entrepreneur but have no social security number yet and no carte vitale. Also, do I have to do anything to contribute towards my pension? D.K.
Your social charges payments go towards your retirement automatically as long as you meet certain minimum turnover levels in a given year.
You should contact your main social security caisse - usually the RSI - about the other problems. Your charges payments entitle you to various social security rights, including healthcare.
Regime change
I AM a professional libéral and I’d like to change to the auto-entrepreneur regime - can I? P.H.
If you are under the traditional micro-entreprise regime you can swap to the auto-entrepreneur’s simplified social charges by applying on a form to Urssaf by the end of the year, for a start in the following one. Technically however you will not have the status of auto-entrepreneur because you are already set up.
Bankrupts return
I LOST money when a company went bankrupt. The owner has set up a similar firm under a new company name. Is this legal? G.H.
To answer fully one would have to look at the liquidation judgment that was passed and, if there was one, the business closure judgment, as well as to know if a judgment making personal sanctions against the owner was made by the commercial court (which is not always the case and requires some financial wrongdoing to be shown).
It would also be necessary to see the articles of the new company, notably to see who the partners are and their roles in the company.
Speaking generally, there are sometimes cases where a business owner whose firm was liquidated and was closed down due to insufficient assets then sets up a new company in which they will act as a de facto manager.
Their name is not officially mentioned anywhere because the company is legally composed of family or friends.
In such as case the person will usually have the status of an employee and this is perfectly legal.
