If you have an existing business registered as an entreprise individuelle or micro entreprise, you cannot switch to the auto entrepreneur system. However you can decide to switch to the regime micro social, which will enable you to pay your social charges according to your actual turnover, as per the auto-entrepreneur. In order to switch over in 2010, you will have to send a formal letter to RSI or URSSAF by 31st December 2009. Here is how it all works.
Advantages of the Regime Micro Social
- Your social charges are paid according to your real turnover using quarterly declarations.
- Your social charges rate is similar to the auto entrepreneur scheme: 12% of your turnover for trade, food and accommodation, 21.3% for crafts or manual services and 18.3% for intellectual services.
- There is no lump sum to pay off in N+1 as per the regime normal. If you registered in January 2009 with the standard regime, you will have paid your cotisations along the year according to a general turnover estimate (about 3,000€). You will also have a “regularisation de cotisation” for 2009 payable in October or November 2010. This goes for your first two years in business and can be damaging if you haven’t saved enough for the regularisations.
- If your business has slowed down dramatically compared to 2008, your social charges contribution are still based on a good year, hence being tough on your cash flow. Opting for the regime micro social means that you will be paying as and when you are earning.
You cannot apply for Regime Micro Social if:
- You have a SARL, EURL or entreprise individuelle with regime reel simplifie
- You are VAT registered
- You are a profession liberale and related to URSSAF and CIPAV, i.e. consultants, developers, private tuitions, etc. This should however change in 2010.
How does the regime micro social work
Your social charges are paid on a quarterly basis; monthly declarations are expected to be working in 2010. You will declare your actual turnover and settle the social charges as follows : 12% of your turnover for trade, gites, B&B, 21.3% for crafts and manual services, 18.3% for professions liberales relating to RSI for their pension (i.e. driving school, sophrology, taishi, etc).
How to apply for the regime micro social
For activities relating to trade (shop, markets, online shops, B&B) and crafts, you can apply online on the auto entrepreneur website under the ’‘Optez pour le reglement simplifie des charges sociales et fiscales section’‘. Alternatively you can write to the the Regime Social des Independants with a recorded letter (avec accuse de reception from La Poste).
If you are a profession liberale (intellectual services) and relating to RSI, you can switch over in the same way. However if you are related to URSSAF and CIPAV for your pension, you cannot switch over yet. A new law has been voted, but we are still waiting for the implementation decree. It should take place in the first quarter of 2010 and I shall up-date you with the specific deadline on this blog.
Deadline to apply for the regime micro social?
The official deadline to apply is the 31st December 2009.