Gite Rental and Micro Bic

[Mick & Beth]

Hi all,
We are also new to the forum and new to the French tax system. We have taken early retirement and now live permanently in France and have a small public pension from England.
We run a small Gite with a turnover of not more than €8,000 per year. From what we have read on the forums and researched on other sites, it would seem that we should be on the Micro-Bic tax regime. From what we understand, we do not need to have an accountant, though we do need to keep accounts and bank statement as proof of income and we will only pay tax on 28% of the turnover. Is this correct? Any help would be greatly appreciated as there are many confusing and conflicting responses to this subject.

[la vache!]

Hi Mick and Beth,
that is correct, you can earn up to 76,300€ as a micro entreprise, you don't need an accountant, you just add it onto the No. 2042 declaration complementaire revenus. I believe that for the 2006 impots the amount you are taxed on will increase to 32% because they are abloishing the 10% that is paid on renovated let buildings.

[enid]

That's what we do - you can earn up to €70,00 or something on micro-bic - we did use an accountant to set us up as we needed advice on other things but we don't use them now. It's not difficult once you are in the system.

Welcome to the forum by the way.

[enid]

Posting together Susan! - thanks for giving the correct top figure for micro bic. It was all much easier for us this year - our second as we had last year's papers to guide us - the tax office were very helpful too!!!

[la vache!]

Enid has made a good point - if you have any problems, the tax office are usually very willing to help you fill in the form correctly for free. An accountant would set you back at least 200€!

[Mick & Beth]

Hi both,
Thanks for the prompt replies, it's good to know that people are willing to help. I don't know if I'm being particulary thick but I cannot find anywhere on the 'Declaration Preremplie-Revenus 2005' (2042 K DPR) to add income from Gite rental. Is there another form that I have to obtain from the tax office and if so, do you know the number of the form please? I'm afraid it's a bit of a nightmare trying to get our tax office to understand what we are asking for, they are very helpful but our French just isn't good enough when it comes to official business.
Another question that you may know the answer to; is tax payable to the French tax authorities on the interest earned on PEPs in England? These are tax free in England but again we have seen many conflicting replies to this question.

[la vache!]

The Déclaration complementaire revenus is form 2042 CKB - DPR, just ask the tax office to send you one. I'm afraid I don't know the answer to PEPs, although someone might here - if not, I would recommend another forum, www.totalfrance.com as there are some very knowlegable people who post on more specific financial details.

[enid]

but I cannot find anywhere on the 'Declaration Preremplie-Revenus 2005' (2042 K DPR) to add income from Gite rental.

Don't know if this will help as you haven'tyet registered as a micro bic but this si where we put it:

2nd page section B Revenus Industriels et Commerciaux Professionals - Vente de merchandise ou assimiilées - in box KD for my hubby and in box LD for me - I am the one registered with gites

Hope that helps

[Marion]

I have just done this. I went to an accountant as I couldn't find the correct for m on line and we had other questions as well. It turns out that we don't have to pay any tax, after they take into account personal allowances, but we do have to pay a 10% social charge which works out to 500-600 euros. I think the answer to the PEPs question is as a resident in France you should declare you income from anywhere, and it will be taxed in France.

[Mick & Beth]

Many thanks, all the information has been very usefull and we are now in the process of sorting everything out.