by Sheila Wilson on Thu Nov 15, 2007 10:47 pm
Thanks for the interesting info in today's newsletter. It was indeed sunny when I was in Aix at the beginning of the month!
The article on small businesses particularly interested me, as I'm a freelance English trainer, and I quite agree that it pays to study all the possibilities before starting up. However, I think the terminology used may be a little confusing and misleading. 'Microentreprise' is the tax structure available to any small business with revenues of less than 28,000 euros (approx). It can by a BIC (commercial) or a BNC (non-commercial).
Within this structure, you can choose between the 'régime simplifié' (the one referred to as the 'microentreprise' in the article, with a fixed percentage of income representing expenses) or the 'régime réel' where you calculate the actual expenses incurred over the year. If you opt for this 2nd régime, you are still a microentreprise!
Certainly, it can be worth opting for the 'régime réel' if your actual expenses are higher than the fixed percentage allowed for, and if you opt for using professional accounting services then this expense results in a lower tax bill, as this expense is covered by a special tax incentive. However, if you choose the wrong one all is not lost, as you can switch later (various restrictions apply). Just make sure you keep complete records of all expenses if you think you might want to change retrospectively from 'simplifié' to 'réel'.