Am I losing out financially by having opted for versement libératoire de l’impôt?
I moved to France in August 2024, and set up an online tutoring (English and academic writing) business under the microentrepreneur scheme. When I did this, I opted for the versement libératoire de l’impôt, as I felt that this would help me manage my taxes more easily, allowing me to pay them on a monthly basis, rather than in a lump sum at the end of the financial year.
However, I recently became concerned that this was resulting in a situation where I seemed to be paying a lot of tax in comparison to my quite modest income. I had also been under the impression that, while the versement libératoire de l’impôt did not allow me to claim rebates on my taxes for supplies necessary for the running of my microenterprise, I would still be able to claim a tax rebate if my income did not surpass the personal allowance (as is the case in the UK), for which I’ve found varying figures (this is another problem).
My turnover for August-December 2024 did not exceed 6,500 €, and my turnover from January-August 2025 does not exceed 10,000 €.
Looking for some clarity on this subject, I contacted my local tax office via the online messagerie in my professional tax space, and they have informed me that, having opted for the versement libératoire de l’impôt, I cannot claim any reimbursements, and that if I want to cancel this option, I need to contact URSSAF before the 30th of September, in order for the cancellation to take effect from 1st of January 2026.
There are a few issues that I was wondering if you could help me with here:
1. Is the versement libératoire de l’impôt the best choice for me? Would another option allow me to claim a rebate?
2. If I opt out of the versement libératoire de l’impôt, what am I opting into instead?
3. Would the cancellation which takes effect from 1st January 2026 allow me to request a rebate on my 2025 tax return (which I’ll complete next spring)?
4. I seem to be paying a lot of money in social charges and taxes each month, in comparison to my income (see example figures below). Is this just the French system, or am I doing something incorrectly (it seems a much more punitive system than the UK)?
I would really appreciate your help with any of this, as I’m very much lost. I had been feeling like I was on top of things, until this issue regarding tax rebates. I am also very concerned that, if I’m paying more than I need to be, I could be a little more financially comfortable than I currently am. I’m also worried about making sure that I contact URSSAF before the 30th September deadline, if opting out of the versement libératoire de l’impôt is the best option for me.
EXAMPLE FIGURES:
Cotisations et contributions (For declared monthly income of 1691,00 €)
538 - Prestations de services (BIC) 21,2 % 0,00 €
528 - Vente de marchandises (BIC) 12,3 % 0,00 €
791 - Prestations de services (BNC) 24,6 % 416,00 €
520 - Versement liberatoire de l’impot sur le revenu (Prestations BIC) 1,7 % 0,00 €
510 - Versement liberatoire de l’impot sur le revenu (vente BIC) 1 % 0,00 €
573 - Versement liberatoire de l’impot sur le revenu (Prestations BNC) 2,2 % 37,00 €
578 - FORMATION PROF. OBLIGATOIRE 0,2 % 3,00 €
TOTAL 456,00 €