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Auto-Entrepreneur Changes for 2015

Wednesday 07 January 2015

The level of the social security contributions payable by auto-entrepreneurs has been reduced for 2015, although the exemption from business rates comes to an end.

Last month, a surprise decrease in the level of the cotisations (social security contribution) payable by auto-entrepreneurs was announced by the French government.

The decrease is a result of the general reduction in the minimal level social security contributions for health and pensions that has been introduced for all travailleurs indépendants.

Although auto-entrepreneurs do not pay specific contributions for each service, but a single percentage rate, they also benefit from the change.

This means the social security rate for each of the four auto-entrepreneur business sector groups for this year is as follows:

Activity
2014
2015
BIC Commercial
14.1%
13.3%
BIC Services
24.6%
22.9%
Professional RSI
24.6%
22.9%
Professional CIPAV
23.3%
22.9%

Since 2011, in addition to the basic social security contribution, auto-entrepreneurs also pay a small fixed percentage professional training levy, called la contribution de formation professionnelle. The levy is around 0.2% to 0.3% of turnover, which is collected with the general contribution.

Sales based businesses (commerçants) are also required to affiliate to their local Chambre de Commerce et d'Industrie (CCI) and trade based professions (artisans) to the Chambre des Métiers et de l'Artisanat (CMA). A percentage affiliation fee is payable, of between 0.007% to 0.48%, depending on type of activity.

Turnover Thresholds

The use of auto-entrepreneur tax status is subject to maximum turnover thresholds, which varies by type of business activity. These thresholds remain unchanged for 2015.

The government have decided that where the maximum threshold is exceeded in the year, the change of tax regime (from micro-social to régime réel) that was previously obligatory now only applies from the following year.

Business Rates

With effect from 2015 auto-entrepreneurs will no longer be exempt from business rates - the Cotisation Foncière des Entreprises - CFE).

Business rates are payable on the basis of rates bands, depending on the level of turnover.

Although the amount payable is determined by each local authority the government have set a cap on the amount that can be charged within each rate band.

For those with a turnover less than €10,000 it is capped at €500 pa, although there is a minimum contribution of €210 pa.

This minimum contribution does not apply if you had no sales in the year.

Those who work from an office in their home are liable for the minimum contribution.

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