| The government has introduced new concessions | | | | My turnover in the year was EUR4370, on which |
| in the rules applicable to auto-entrepreneur | | | | I have paid several hundred Euros in social |
| business status in France. | | | | security contributions. However, late last year I |
| An 'auto-entrepreneur' is a form of | | | | contracted a serious illness, since when I have had |
| micro-enterprise, with particular rules concerning | | | | two major operations. Although I am still unable to |
| liability to social security contributions and business | | | | work, I remain fully covered for health care.' |
| registration. Under this business status, social | | | | Easier Access for 'Professions Liberales' |
| security contributions are payable as a percentage | | | | In a further relaxation of the rules, those |
| of your gross sales; if you do not realise any | | | | currently involved in a business activity as a |
| sales in an accounting period, then no social | | | | self-employed professional (profession |
| security contributions are payable. | | | | libérale) affiliated to the retirement |
| So the great innovation here is that unlike other | | | | insurance fund 'CIPAV' can now opt for |
| forms of business status, no minimal social | | | | auto-entrepreneur business status. There are |
| charges are payable: no sales = no social security | | | | around 150 professional business activities |
| contributions. Although you may realise no sales, | | | | affected by this rule, embracing a wide range of |
| you still retain your social security rights, notably | | | | professions, such as architect, security guard, |
| affiliation to the French health system. | | | | financial advisor, designer, osteopath, music |
| More precisely, in the case of no sales, access to | | | | teacher and cinema technician. |
| the health and social security system continues to | | | | The new rule grants access to auto-entrepreneur |
| be available for up to 36 months (which may not | | | | for both new and existing business professionals in |
| be continuous) or 12 consecutive quarters. In the | | | | CIPAV. An existing business has been granted until |
| event that there are no sales over this period | | | | 28th February 2010 to change their business |
| then, not only is the right to social security | | | | status for this year. If you do so, you will be pay |
| benefits removed, but so is entitlement to | | | | 18.3% of your turnover in social security |
| auto-entrepreneur business status. | | | | contributions, which you can elect to pay monthly |
| The lack of sales amongst auto-entrepreneurs is | | | | or quarterly. In all cases, auto-entrepreneurs |
| surprisingly widespread. Last year around 300,000 | | | | cannot exceed the maximum annual turnover |
| auto-entrepreneurs set up shop, but according to | | | | levels applicable for their type of business, and |
| government figures, 60% of them recorded no | | | | they are also required to comply with any |
| sales! The average level of sales per quarter was | | | | minimum qualifications or experience that is |
| EUR4000. | | | | necessary in order to persue the activity. |
| The lack of sales does suggest that many were | | | | Multiple Business Activities |
| finding difficulty in getting the business going, or | | | | In a further clarification of the regulations on |
| that the status was being used as a | | | | auto-entrepreneur business status, the social |
| complementary activity to existing employment, | | | | security authorities have been giving consideration |
| or to support a retirement pension, or higher | | | | to the social security obligations of those |
| education studies. | | | | auto-entrepreneurs who run more than one |
| On the darker side, there is also evidence that | | | | business activity. |
| some employers are inveigling some employees | | | | As the percentage rate of social security |
| to convert to auto-entrepreneur status, often | | | | contributions depends on the type of business |
| under the threat of redundancy. There are huge | | | | activity you pursue, the question arises as to |
| financial benefits for the employer in doing so, for | | | | whether one or more rates apply for those with |
| they then cease to be responsible for employee | | | | multiple business activities that do not have the |
| social security contributions, amounting to 40% or | | | | same contribution rate. |
| more of the basic salary. | | | | In a rare instance of where an administratively |
| For the employee, the benefits are less evident, | | | | simple and clear procedure has been adopted by |
| for although they become 'their own boss', they | | | | the authorities, it has been decided that only one |
| lose their right to unemployment benefit, not | | | | rate should apply, that being the rate that applies |
| automatically available to the self-employed. | | | | to the principal business activity. Accordingly, if for |
| However, on the evidence of your e mails, it | | | | instance, you run an artisanal business and you |
| does seem that the auto-entrepreneur system is | | | | have a separate but secondary commercial |
| working for many of you. Tom Dryden, who lives | | | | business, you will pay social security contributions |
| in the Limousin, wrote to us recently to say, 'I | | | | on both activities at the rate applicable for |
| arrived in France in January 2008, and last year I | | | | artisans. |
| signed up for the auto-entrepreneur system, | | | | Clearly, if you run two or more businesses within |
| offering general DIY services to other expats in | | | | the same business category, then a single rate will |
| the area. | | | | apply on the total turnover of the businesses. |