Urssaf steps up business checks

URSSAF is toughening its stance on non-declaration or under-declaration of business activity, says the Dordogne branch of the body which is responsible for the collection of social security contributions from firms.

Urssaf official Sophie Nicolas said fraud inspections were increasing compared to previous years and there is more information sharing with other bodies.

This is in a context of a national push against social security fraud and new legal powers, allowing Urssaf to access information held by banks and utilities.

Ms Nicolas said: "We now meet several times a year with other bodies like the gendarmerie and police and tax officials at the prefecture. It’s something we are putting major resources into.

"It used to only be us involved in combating social security fraud but now it’s other bodies, for example, the Cpams and the caisses d’allocations familiales.

"As soon as one organisation discovers fraud we tell the others, because when someone defrauds one body they are usually defrauding others as well."

She said there may be cases where ignorance was involved rather than deliberate fraud however "ignorance of the law is no excuse." Ms Nicolas said under-declaration (as opposed to no declaration) was an increasing concern. "It’s things like hours of work or amounts of pay - such as bonuses - not fully declared on pay slips, and self-employed people in trade or sales who only declare part of their income."

Almost any kind of business activity potentially needs declaring to Urssaf, especially if it is done regularly, she said.

You register directly with your Urssaf if your business type is a profession libérale of if you have employees (part of their salary is paid to Urssaf for social security). For other small businesses the contact point is a chamber of commerce or trade.

When it comes to regular payments for business people’s social security cover, professions libérales pay Urssaf directly (among other bodies) and others pay RSI (ultimately Urssaf under a different guise).

All firms make professional revenue declarations, used to determine the level of social security contributions.

Ms Nicolas said: "If you want to make sure you are following the rules, contact your local Urssaf for advice. If you didn’t declare your activity when you should have there may be backpayments, but it is better than being subject to an inspection for illegal work, which can mean fines and prison. You should register straight away and declare revenue since you started."

She added that Urssaf would be taking part in Success in the Dordogne, an exhibition in English about business organised by the Franco British Chamber of Commerce and Périgord Développement, on November 5-6 in Périgueux.

"We want to explain the correct formalities - it’s important to prevent problems arising and give maximum information," she said.

Firms usually have advance warning if they are to be visited for inspection

Inspections can be done because of suspicions (eg. due to a tip-off) or at random. They check the business is properly registered, proper declarations are being made and social security rules followed. Firms are sometimes picked because they match criteria selected for attention in a given year, in terms of size or sector.

Inspections can involve a visit to premises (audit sur place) or un contrôle sur pièces based on documents supplied.

Firms are usually given advance warning, though for inspections intended to discover illegal undeclared work (usually following tip-offs), they may be unannounced. They can take from half a day to several weeks, depending on business size.

Urssaf inspectors can ask to see any relevant documents relating to the business. There may be back-payments to make up and there can be late payment penalties.

However in some cases an inspection leads to the discovery that refunds are due. In practice, inspections are usually of businesses with employees. Where people trading alone are checked it is usually because of suspicion of illegal undeclared work.

It is also possible to volunteer for an Urssaf check. If you do this in the first six months of trading, for a business of less than 10 employees, and mistakes are found, no extra payments will be due.