The auto-entrepreneur status is well known for its simplicity and its charges proportional to sales.
It's true... and false. Social security contributions aren't the only charges to consider when opening a micro-business. Income tax, CFE, insurance... these are all charges you need to anticipate!
Social security contributions are payable every month or every three months, depending on the choice made at the time of declaration. To do this, you need to declare your sales, since the amount is a percentage of the latter.
In 2017, contribution rates differ according to activity:
- 13.1% for sale of goods (BIC)
- 22.7% for craft or commercial services (BIC)
- 22.7% for other services (BNC)
- 22.5% for self-employed workers covered by the CIPAV scheme
Please note that these rates may vary if you are eligible for ACRE.
Income tax for auto-entrepreneurs is calculated on the basis of a flat-rate deduction for expenses. Depending on your activity, the tax authorities deduct a percentage from your sales to determine your income, and tax you accordingly. It works in the same way as for private individuals: you are taxed at N-1.
You can also opt to pay income tax at source. This option(available under certain conditions) allows you to pay your taxes at the same time as your social security contributions. A fixed percentage is added to your social security contributions, and each month (or quarter), you pay your taxes as you go along. The percentage varies from 1 to 2.2%.
In any case, the income tax return due in May remains compulsory!
The Cotisation Foncière des Entreprises(CFE) is the same as the taxe d'habitation for individuals. Every company (including micro-businesses) must pay this tax for all the premises it uses.
It is calculated on the basis of the rental value of the head office, its location and sales. The auto-entrepreneur is exempt for the first calendar year of activity (for a start-up in November 2017, the exemption is for 2017), then 50% for the second year.
The payment notice is available from autumn on your professional space on the impôts.gouv.fr website, and must be paid by December 15.
Many costs are directly linked to your profession. Professional liability insurance, for example, is not compulsory for all professions, but is highly recommended. Depending on your situation, you may also need to take out mutual insurance, health insurance or professional software subscriptions.
Written by our expert Editorial staff
December 12, 2017
