Declaring small business income in France
I started a hypnotherapy practice last year, so this will be my first tax return. I am a set up as a micro-entrepreneur. Can you tell me how to declare this kind of income on the French tax form please? E.R.
Micro-entrepreneur income is declared differently depending on how you are set up to pay income tax, ie. whether you do so on the set prélèvement libératoire on a regular monthly or three-monthly basis or not (note that the right to do this is subject to specific income ceilings).
If you have been paying ‘as you go’ under the libératoire system then your income still needs to be declared so the tax office is aware of your overall income, and this is done on page one of the 2042C PRO.
If you are set up as a ‘service’ worker, it would go in 5TB, or if you are considered a ‘liberal professional’ (micro-BNC income as opposed to micro-BIC) it goes in 5TE.
If instead you opted for taxation under the usual bands after the micro allowance, income from services is inserted in 5KP and from liberal professions in 5HQ.
Reader's query answered byHugh MacDonald
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