Are you an auto-entrepreneur? Micro-entrepreneur? Do you have to declare your income and don't know how? This article is for you!
Please note! First and foremost, it's important to remember that auto-entreprise is not a specific business status, but rather a system.
In fact, auto-entrepreneurship is in fact the same as sole proprietorship status, and can vary according to two particular regimes:
- The simplified microsocial scheme
or
- The micro-business tax system, better known as the prélèvement libératoire de l'impôt sur le revenu (withholding tax on income) and sometimes referred to as the "microfiscal" system.
This new entrepreneurial reality saw the light of day in 2009, and since then has made it possible to generate income while limiting the number of constraints associated with traditional entrepreneurship, based in particular on a genuine simplification of business creation and management.
The auto-entrepreneur scheme can be used as a main activity or as a complementary activity for employees, pensioners or students.
Despite the simplification of administrative tasks, certain steps still need to be taken to complete your tax return.
Focus today on the auto-entrepreneur/micro-entrepreneur income declaration!
First, it's important to look at what the auto-entrepreneur/micro-entrepreneur has to declare for tax purposes.
As such, they are required to file a personal income tax return, indicating the total income earned during the year.
Please note: the only revenues to be declared are those received.
It is essential that the amount declared in this annual declaration corresponds to the total revenue previously declared on a monthly or quarterly basis on the Net-entreprises platform .
As such, the auto-entrepreneur/micro-entrepreneur must receive a summary of the amounts paid each quarter or month from URSSAF.
As mentioned above, the auto-entrepreneur/micro-entrepreneur must declare the amount of revenue for the calendar year.
There are two possible scenarios:
Firstly, for auto-entrepreneurs who have opted to pay withholding tax, income tax has already been paid. However, they still have to file a tax return. To do this, you need to send in a supplementary declaration: form n°2042 C PRO.
This form must contain a certain amount of information, including :
- Information concerning the identity of the auto-entrepreneur
- Declaration of income for the year.
To do this, you must enter your income on the corresponding lines according to its nature:
- With regard to BIC activities :
- For sales of goods : 5TA, 5UA or 5VA
- For service activities and furnished rentals: 5TB, 5UB or 5VB
- For BNC activities: 5TE, 5UE or 5VE
Secondly, auto-entrepreneurs/micro-entrepreneurs who have not opted for the prélèvement libératoire (flat-rate withholding tax) must declare the amount of these revenues in order to calculate the Impôt sur le Revenu (income tax) to be paid.
Once again, please contact :
- A supplementary declaration n°2042 C PRO.
- Information concerning the identity of the auto-entrepreneur/micro-entrepreneur
- Declaration of income for the year
To do this, you must enter your income on the corresponding lines according to its nature:
- With regard to BIC activities :
- For sales of goods: 5KO, 5LO or 5MO
- For service activities and furnished rentals: 5KP, 5LP or 5MP
- For BNC activities: 5HQ, 5JQ or 5JQ
Finally, let's look at a number of specific rules for declaring income under the auto-entrepreneur/micro-entrepreneur scheme.
First of all, even zero sales must be declared. Indeed, even if the auto-entrepreneur/micro-entrepreneur makes no sales at all, the latter must be mentioned in the annual tax return. In particular, this enables the auto-entrepreneur/micro-entrepreneur to justify exemption from social security contributions.
Failure to declare will result in a €47 fine.
Secondly, if you are out of business for more than 24 months, you will lose the benefits of the micro-social scheme.
Finally, if you have no CA, you can continue to receive welfare benefits. If you have no income, you can continue to receive this supplement.
In conclusion, declaring your income is based on simple procedures that you need to be aware of in order to limit errors. Above all, it's a compulsory step that must not be taken lightly if you wish to avoid penalties.
Written by our expert Quentin Moyon
July 2, 2018
