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Costs of partner helping out in Auto-entrepreneur business

Posted by lautreville - Created: 4 years ago
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10 replies (Showing replies: 1 to 10)

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Posted by Foxie-986308 - 4 years ago

http://www.apce.com/pid831/conjoint-collaborateur.htmlC=173&espace=1

"Ce statut ne peut pas bénéficier aux personnes vivant en concubinage avec le chef d'entreprise."

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Posted by lautreville - 4 years ago

Thanks Foxie - I think we missed the point - am I right in my interpretation of what you say that if we are not married or pacsed then we are not conjoint and therefore can't be registered on AE form - if that's the case then problem solved.

WE have private medical so not and issue

THanks again

 

Nigel

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Posted by Foxie-986308 - 4 years ago

To summarise what I contributed to your same thread on the Normandy forum:

if you are not married nor pacs'd your partner can't be a conjointe collaborateur because she is not a conjointe;

if you don't register a business you will need to find another route to healthcare;

if your partner is covered as an ayant droit zhe must not have any involvement with the business, and if she is found to have been helping you it would be classed as fraud;

AE is not the only business regime. It was designed for low-turnover, low-overhead,  one-person businesses, and if you insist on trying use it for business models that it was not designed for, you lose all the advantages and run into all kinds of complications. 

Also, owning property jointly without being in an official partnership is very risky, as should anything happen to either of you, the survivor would be liable for 60 per cent inheritance tax on anything they inherit.

 

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Posted by lautreville - 4 years ago

No probs SLK - threads are for everyone - we wish you well and fingers crossed for you

Regards

\nigel and Cathy

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Posted by Henry - 4 years ago

Kathyd2  Quote' I've probably missed the point entirely here, but if you register as an AE, your partner is automatically covered for health care under you.  I'm an AE, and my OH is also covered. He doesn't 'need' to be actively involved in running the business in order to qualify.'

My partner is registered AE and I was about to move to France to be with her  full time when I was suddenly diagnosed with the big C. I have delayed the full move because of free treatment in the Channel Islands where I am from. If I did move here full time and got married or official live in partner would I be covered for my treatment in France under my partners cover. As the Channel islands are not in the EU i know this can cause problems when trying to get on the system. 

Sorry to butt in on your thread Lautreville

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Posted by lautreville - 4 years ago

Hi All,

 

Thanks for your feed backs - my original issue was with AE having to pay an additional E3000 pa if my un-married partner was declared as a 'conjoint collorateur irrespective of what we earned - as a gite business we both muck in together although I do most of work.

As she runs our french student hosting side in OUR house separate to our gite then registering her as a separate AE may be the way

Or maybe we just do what Melou does (the first response to my thread) and fill out an annual tax return direct with impot 

I think a visit to an english speaking accountant is in order

Nigel

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Posted by ingetje - 4 years ago

to answer on your original question. of course your partner can register her own AE and pay social charges on the revenue. but no need as she will be covered trough your AE anyways :)

oh and there is absolutly no need to register with GDF to get the bigger abbatement!

I am not registered with them and get 71%. but I am AE.

 

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Posted by Muffin1 - 4 years ago

Thank you Kathy that has helped me immensely. 

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Posted by kathyd2 - 4 years ago

One other point - my professional insurance (now obligatory for all AEs) only names me as the one covered, so again if a partner causes a problem they won't be covered if not officially part of the business.  In terms of health cover and being a concubine (yes really, check the dictionary! ;) ), I seem to remember you could do this as a live-in partner, although that ,ay have been my ,misunderstanding due to dodgy french, so marriage may not actually be essential.

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Posted by Foxie-986308 - 4 years ago

A few random points:

Somebody said their S1 runs out next year, so just to point out that if you set up an AE then that your S1 cover automatically becomes invalid the moment you set up the business. You can't run a business in France and be covered for healthcare by the UK (maybe you know this, it wasn't clear from the post).

If what you actually want to do is run a joint business as a partnership, AE is obviously the wrong regime to choose because as has been said, it's essentially a sole trader regime. No matter how nice and easy and attractive it looks, if it doesn't suit your business model it's no good to you and you'll need to use a different business structure. If you try to use the AE system for anything other than a simple low-overhead low-turnover one-person business then it loses all its advantages and becomes complicated.

As Melou says you may not have to register your gite as a business, but if you're looking for healthcare then you won't get it if you don't, or at least not via your gite. However if the gite income represents a large proportion of your household income then you are obliged to register it as a business.

Obviously if one of a couple registers as an auto entrepreneur and you both work in the business, this can't be picked up from the paperwork and there's a fair chance that nobody will ever be any the wiser. However if you happen to be inspected, or if you ever upset a customer or a competitor and they get vindictive and report you, then it would be classed as fraud and the consequences wouldn't be pleasant.

Final point that might or might not be relevant, the OP mentioned 'partner' and I seem to recall that you can only be a conjoint collaborateur if you're married or pacs'd. But if you jointly own property in France and you're neither married nor pacs'd, you probably need to do something about that in any case, on account of potential inheritance issues.