How to make a profit?
I have registered as Auto-entrepreneur in France and have worked out an example of one of the strings of my business which is selling healthy food. If I sold a cake which cost €20 (I know, it would cost a lot less if made of eggs, fat and flour!) for €32 (still need to be compatible in the market) I have 12 gross profit.
I take 25% cots off the 32 = 24
Take the 20 costs off the 24= 4
Out of this €4 (or multiply the whole thing up to the 32,000 we are allowed to earn so I am left with €4,000 for the year) I have to pay for any replement equipment, the electricity etc and what is left are my earnings!
If I have this right if I did another type of business i could take the 20 off as costs plus all the other costs mentioned plus paying myself then I pay 80% of what I paid myself in cotisations and then pay 45% of net profit in tax.
On my earnings I also pay tax and NI but at least i would have a tax free allowance.
I can’t see how a self catering business can make enough to live on. Am I missing something?