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Daughters First Tax declaration

Posted by c2oafc-383379 - Created: 4 years ago
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3 replies (Showing replies: 1 to 3)

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Posted by Foxie-986308 - 4 years ago

AE is a very very simplified business régime, the only figure that you need is her turnover/chiffre d'affaires. You transfer this into the appropriate box on the tax form and they work everything out from that.

Her AE income has to be kept totally separate from all her other income, don't start adding things together and mixing them up. For AE they're not interested in how many hours she worked nor how far she travelled nor what her expenses were. AE works entirely on flat rate allowances for everything and these are built into the scheme, they have already been allowed for in the scale of charges for cotisations and income tax that she has paid. All they want on the income tax form is her turnover, ie the total of the declarations made to URSSAF during the year. It's always reassuring to get the attestation and check that their records exactly match yours, but if you don"t receive it it doesn't make any difference to anything. Alternatively, you should be able to see the attestation in her espace client online.

What will happen is her AE earnings will be excluded from the tax calculation if she's income tax on the way along, but a percentage of her AE turnover will be added to her RFR, which as you no doubt know is the official figure for her total earnings that year. For prof libérales that percentage is approx 70 per cent, because there's a built-in notional allowance of around 30 per cent for business expenses. So if her other earnings came to 15 000 and she earned 10 000 on AE prof lib, her RFR would be approx 22 000€. For resellers and artisans the percentage notional allowance is different.

Hope this helps.

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Posted by c2oafc-383379 - 4 years ago

Dear Foxie , thanks .. I have been doing my own and my wifes declaration for several years , the thing is i have no experience of AE ... for example does she need to add the hours she works for her AE to her other contracted hours worked and also the milage she travels to and from does she include that in the bareme kilometrique.. also she wishes  to go to the tax office on monday, as of yet she hasnt reveived the paper from URSSAF (that I am aware of) she opted to cotis and tax as she went along so no great suprises for her in regards to tax bills I hope . Is this paper imperative as we have all her income and subsequent payments she made in 2014 in respect of her AE listed and recorded in order?

I have confidence in the tax office and completely agree that face to face at first is best .. I just would rather her turn up organised with all the information she needs as opposed to missing papers and looking daft !!! (she good at that) , thanks for any advice


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Posted by Foxie-986308 - 4 years ago

She should have received, or should soon receive, a form from URSSAF which will tell her the exact figure of AE earnings that she declared in 2014, and it will also explain exactly which box to enter the figure in. If she opted to pay her income tax as a fixed percentage each month then no more tax will be deducted, if she didn't then it will be included in the total income for the purposes of calculating tax payable. They do try to make it easy for you ;) 

I have no idea what your neighbour means by 'wait 3 years'. You have to declare it because it's all recorded and easy enough for the tax office to cross check if they want.

But, since it's your first declaration I suggest you go along to your local tax office with all the paperwork and ask them to help you to fill the form in. This is a service they provide free of charge and a lot of people do this (be prepared to queue up!). The people in the tax office are very friendly, and they're in no way out to cheat you. Then next year you'll be able to look back and you'll be sure that you're putting figures in the correct boxes.