You are about to register your micro entrepreneur and just noticed that you have the choice between a monthly or a quarterly declaration. You are left puzzled as to what the impact could be and which one to choose. Here are my tips to choose between a monthly or quarterly declaration.
You are a non-European citizen : Go for monthly declaration
As a non-European citizen, you had to apply for a carte de sejour entrepreneur/profession liberale (UK) or business visa such as visa commercant or visa profession liberale. This means that after a year, you will have to renew your card/visa with your local Prefecture and you will have to prove that 1/ your business and health cover are all set up and 2/ that you are up-to-date with taxes (social charges + income tax).
You will also want to show that you have started to earn and income. As a micro entrepreneur, providing a copy of your turnover declaration will do just that. Now, if you chose a quarterly declaration, your visa renewal might be up in the middle of a quarter and you won’t have this extra proof. For this reason, it is best to go for a monthly declaration. This way you can prove your business income up to the previous month.
Don’t worry, if you have opted for a quarterly turnover declaration and wish to switch to a monthly declaration, you can do it. Ask URSSAF via your autoentrepreneur.urssaf.fr messagerie to switch to a monthly declaration from the 1st January the following year. This change can only happen with the start of a new year. Apply in October, November or December for the change to be efficient on 1st January.
You are a European citizen or have a carte de sejour art 50: Go for quarterly
Good news for you, you don’t need any business visa or to renew your carte de sejour. The choice is therefore up to you. Are you very organised with your paperwork and prefer to pay your taxes as you go? Sitting down at the end of each month to go through your bookkeeping. Or do you prefer to leave it for later and sit down just once a quarter to handle your paperwork?
I’m part of the monthly team. I’ve always preferred to sit down at the end of each month to double check my numbers: what’s in and out, outstanding payments to chase, potential investments to come, impact on cash flow and tax “savings pots”.
You are on French benefits : Go for monthly declaration
If you are going freelancing after being made redunctant from a French work contract or whether you negotiated a mutal end to your work contract (rupture conventionnelle), you will be entitled to some benefits. The right order of events will be to end your contract, enroll with the unemployment agency Pôle Emploi, wait for your unemployment benefits to be confirmed, then register your micro entrepreneur.
As you will have to keep declaring to Pole Emploi your business earnings every month, you want to go for the monthly turnover declaration. This way you will have an official document to proove your business income each month.
If you want to find out more about the Micro Entrepeneur, look at my online courses:
- Micro Entrepreneur overview. You will understand the ins & out of the micro entrepreneur and taxes before you register your activity.
- Manage your Micro Entrepreneur: in depth course after you have registered your aftivity, to learn how to create your online accounts, declare your taxes, handle your forms and create an invoice.