When you registered your auto-entrepreneur business, you were fully aware of your maximum yearly turnover: 32,100€ for services and 80,300€ for trade. But did you know that this threshold is calculated on a pro rata basis?
So for instance if you started your French business on 1st March 2010 as a marketing consultant, your maximum yearly turnover for this year is (32,100€ /12)*10= 26,750€ . URSSAF is pushing this calculation further by taking the exact number of days!
Many auto-entrepreneurs have received a letter from URSSAF informing them that they could no longer benefit from the auto-entrepreneur regime because of this rule! They will now have to move to a standard regime of entreprise individuelle. So my tip when registering your business is to write down the maxium turnover you will be able to make this year, if you want to remain under the auto-entrepreneur regime.
As a reminder, you will be able to remain an auto-entrepreneur for 2 years, provided your turnover remains within 34,100€ and 88,300€. Past that threshold you will switch to regime reel simplifie the following year (VAT registered, forfait de charges sociales, different accountancy rules). The regime micro fiscal, i.e. income tax paid at source, will be cancelled from 1st January.
TIP No2: If you start your auto-entrepreneur business along the year, check this useful turnover threshold calculator from Agence Pour la Creation des Entreprises (APCE). Indicate your activity and your starting date, you will know the maximum turnover you will be able to invoice in year one. http://www.apce.com/pid10550/les-seuils-precisions.html?espace=1
Visit Valerie’s website to join the business forum and get access to videos and phone help. www.startbusinessinfrance.com
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