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Micro-Entreprise or Auto-Entrepreneur ? Cotisations

Posted by madame-angeline-391106 - Created: 3 years ago
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10 replies (Showing replies: 1 to 10)

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Posted by goldman-817387 - 3 years ago

yes ive no argument there and agree with you 

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Posted by Reveuse-918439 - 3 years ago

In that case goldman maybe I would, but it would still depend on what the other 2 guys quoted. I appreciate what you're saying but as a punter I'm not interested in how other people run their businesses and how much profit they are or aren't making. I'm only interested in what it will cost me and what I'm getting for it, plus a bit of gut feeling as to whether I think the guy will do a good job. And although I'm an AE myself so I kind of feel should support other AEs, of three jobs I've had done within the last year or so which have been replacement windows, a toilet flush mechanism and a new gutter,I didn't choose an AE for any of them because the bigger boys gave better quotes and inspired more confidence.

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Posted by sophie hunton - 3 years ago

Thats how most AEs do .

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Posted by goldman-817387 - 3 years ago

Hi Reveuse , Just got in from work and I saw your post re the punter , any good businessman is going to do things in the best way possible whilst working within the law, now lets say you ask me to fit a shower and I tell you that the shower is 100 EUROS at the brico and lets say the labour is 250 euros making a total of 350 , now we can do it 2 ways you buy the material and I do the labour, first question

if you buy the material who pays if it goes wrong answer you do , the second way of doing it is for me to buy the material and resell it to you, if I sell it for 100 euros then I lose because after tax I am selling it at a loss, so how about I sell it for 200 euros and to get the job I agree to do it for 150 euros ,

advantage to you is that you now get a warranty from me for the material and if it goes wrong its me that has to repair it for nothing and you pay the same price as if you had brought it yourself. 

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Posted by Reveuse-918439 - 3 years ago

AE works great for me. I work online as professions libérale and virtually my only overheads expenses are a computer, power and adsl and somewhere to sit. All of which I would have in any case regardless of running a business. I did exactly the same work self employed in the UK and I never managed to claim more than around 5 per cent expenses, even buying stuff I didn't really need and charging myself for workspace and heating. It is exactly the kind of business that works well on AE and there is no reason for me to change unless something changes. What you want is no capital outlay (how long will it take you to recoup the cost of a pizza van that meets all the hygiene regs) and the lowest possible ratio of operating expenses and overheads to turnover. 

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Posted by sophie hunton - 3 years ago

It looks to me that the only way an AE works well is to buy a pizza van and sell pizzas with around a 500% mark up and as long as you sell plenty and don't spend a fortune on the van you should do very well.

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Posted by Lumbersexual-992851 - 3 years ago

Once you 'leave' the micro regimes and become for example an SARL, you are able to negociate decent trade discounts previously unavailable.

An SARL is is far more 'profitable' than the micro-regime system for this reason.

As Reveuse clearly points out, paying cotisations on goods with tva is just not tax efficient.

In my case, what I spend against what I take means my tva burden hovers around the 10% mark only.

Being a SARL means being able to offset my expenses, employ, negociate better trade prices and easily obtain credit in order to invest in equipment.

I think that if you have a credible business plan then yes, start out as a micro regime BUT before you make any serious investments in equipment change to a SARL.

IF you invest heavily as a micro then that value is lost should you change regimes in the future.

I will make one other point about micro regimes.

Having been self employed in the U.K before coming to France in '02 and used to keeping accounts, I find the idea of working to a set forfait for expenses quite abhorrent. 

Without keeping real accounts how are you to know your profit margin?

Remember , turnover is not profit and profit is the reason for being in business!

Jack

 

 

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Posted by Reveuse-918439 - 3 years ago

I thought we were talking about artisans supplying materials, perhaps I've misunderstood. If you're talking about people whose main activity is reselling, obviously it's different because their business depends on being able to buy stuff cheaper than Joe Public in the first place.

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Posted by Reveuse-918439 - 3 years ago

I'm looking at it from the punter's point of view.

If he is charged 200€ for an item that cost 100€, that is a 100% markup to him and a 100% markup is high by anybody's standards. Most clients would prefer to either buy the item themself for 100€, or use a VAT reg artisan who can make a profit on a far smaller markup. OK if you do it this way you make a small profit but the customer pays more and gets no added value, and the real winner is the taxman because since most AEs aren't VAT registered, you are in effect paying cotisations and tax on the VAT that you paid. How does that make sense.

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Posted by goldman-817387 - 3 years ago

Reveuse, If you double the price of what you buy you do not end up with 100% , you end up with 35%

think about it, if you buy an item for 5 euros and sell it for 10 euros you make 5 euros gross profit take of your tax of which I pay 15%  which on 10euro is 1.50 euro , this gives you 3.50 net profit , now 3.50 euros on a sale of 10 euros = 35% net  profit, and that is why lots of AEs hardly make a profit ,

the calculation by the way works on any amount. and as far as you customer goes if you explain it I have always found them ok, its simply you have to make a profit.