English translation of the French auto-entrepreneur system
There is a website with an English translation of the French auto entrepreneur scheme, which will be very helpful for those of you wanting to know about this system. You can down load the PDF document on the site.
l’auto-entrepreneur system (.pdf) by translator Alison Morton
The scheme was designed to make it easier for self-employed people in France and your tax and social charges will be based on your turnover. You are not allowed to claim any expenses, and the rate or charges will depend on the type of business that you will be running.
There is also a cap on the amount of turnover allowed, which is basically 80.000 Euros for those supplying goods and 32.000 Euros for those supplying services. These amounts are subject to change in the future.
The good point about the scheme is that you will know exactly where you stand tax wise, based only on your turnover, so it is very simple. There is also no need for an accountant as you will have nothing to claim against.
The amount you will pay will also depend on the type of business that you run, but will be either 20.5% or 23.5%. These percentages will go up from time to time, so it wise to check on the latest rates. Here is a link to the 2013 rates
From 1st January 2012, auto-entrepreneurs and micro enterprises having opted for the micro-social regime will be liable to a new penalty fee, if they forget to complete their turnover declaration.
As with any new business it might be wise to talk to an accountant before you start and we do have some listed on French Accountants and legal advice