This article explains changes that come into effect in 2020. For an explanation of how to become a micro-entreprise (auto-entrepreneur) and why, see our guide to setting up as a micro/auto-entrepreneur
Most of the changes below will come into effect on 1st January 2020, although some will be a little later.
Turnover limits have gone up:
€176,200 for sales and supply of lodgings (hotels, chambres d’hôtes (B&Bs), rural gîtes classed as furnished holiday lets, furnished holiday lets), with VAT registration obligatory over €85,800
€72,500 for supply of services classed as BIC and for freelance professionals classed as BNC with VAT registration obligatory over €34,400
Be aware that figures are net of VAT and calculated pro-rata for businesses that start during the year.
Right to the ACRE
The right to pay reduced contributions for people starting a micro-entreprise was given to anyone who started their business in 2019. However from 2020 it reverts to the old system where you have to fulfil one of 9 criteria which the government site/Pole Emploi/CMA or CCI can advise you on. Moreover, instead of a reduction for the first 3 years, the reduced rates are now only available for the first year and the level has been reduced from a 75% reduction to a 50%, so charges are higher. The bad news for those that started on the ACRE earlier is that the reduced rate applies to them too.
Social Contribution Rates
These remain the same as for 2019
Change in online declarations
You now have to use autoentrepreneur.urssaf.fr to declare your turnover and pay your charges. net-entreprises.fr no longer deals with micro-entreprises. The site has been a bit glitchy but hopefully that will be ironed out and apparently you will be able to link with some accounting software to do automatic declarations etc.
Entitlement to unemployment benefits
From November 2019 independent workers who meet the conditions can receive a new benefit called “allocation des travailleurs indépendants”. This is €800 per month for a maximum of 6 months and will only be paid if 6 conditions are met:
- You must be registered as a job seeker
- You must actively be looking for work or starting a new company
- Been an auto-entrepreneur for at least 2 years.
- Have turned over at least €10,000
- Have less income than the amount of the RSA at the time of your application (all household income and other benefits will be counted)
- Your old company was put into liquidation or receivership.