Lay My Hat

I would be grateful for any information on the subject of registration of a chambres d’hôte with the RCS. I have just 2 chambre d’hôtes and take around 6,000€ per year gross. We have just entered the figure on our tax declaration every year and paid tax and contributions after the on the 29% that is left after the 71% ‘abattement.’ We consider this a supplementary income to pensions, of which my husband’s constitutes our main income. I understand now that, if chambres d’hôtes are let on a regular basis (albeit not that regular) then they have to be registered with the RCS. So how do you do this and what does it mean? It has been suggested that, as I run the ‘business’ I should register as an autoentrepreneur. Well, I don’t mind doing this, but I don’t want my husband’s pension to be affected by extra charges, etc. What would be the best course of action to take?

Thanks for any advice

Hello I'm not sure I can help you much as we're still negotiating minefield associated with running a business in France... and don't have UK pensions to consider, but if you haven't already got one, I would recommend you find a good French accountant to help you. While they're not the same as UK ones in finding every loophole possible to avoid paying taxes, they should be able to assess your situation and suggest the best regime for you, as well as sort out the confusing social security payments. Ours also registered with the RCS on our behalf.

While we run our gite as our main business, the previous owner had it as a sideline and what I gather from him, it provided a tidy second income without impacting on his main employment, so I reckon you should be able to find a suitable autoentrepreneur regime that doesn't completely sting you financially.

One other option which may suit you is to register as a UK business. I have to say I know nothing about how that works, but several of my friends here in the Alps have chosen this route and it seems to work for them. We haven't because we have children so it's simpler to be totally part of the French system, but if you have no dependants, this might be a more cost-effective option for you. Probably better to get advice from a UK accountant rather than a French one for that one, mind!

First off, registration as a UK business is a non starter. It's simply not legal: residents of France are taxable in France, period; plus any business run in France is taxable in France wherever the owner lives.

Everything hinges on the definition of 'habituel' (regular). We operate as a cdh, but on a small scale and as supplementary incomes for both of us. We don't let all the time, out of choice. We're registered with the mairie, but not with the RCS as because of the sporadic nature of how we operate I consider us to be non-professional (in the fiscal sense, that is!) - and all the advice I've gleaned from Accueillir magazine, who are very clued up about this sort of thing, has supported that.

As our cdh income is well below the threshold for RSI contributions, we simply declare it on our declaration des revenus each year; we pay social charges on it as 'revenus de patrimoine', plus tax. It's likely that 2015 will be our last year registered as a cdh as (after nearly 20 years of guest breakfasts in my case!) we're seriously considering a fiscal switchover to self-catering for 2016, but at the moment at least I don't intend to do anything differently for this year.

I am not sure if I am correct, so please be kind, but aren't cdh liable for TVA as you provide food ? This would affect the regime you should register with I would have thought.

Most cdh don't earn anything like enough to hit the TVA threshold, bornintheuk!

I have also replied on the other thread you have started, and welcome

you do not need to pay vat on food, not at the level you are taking, as you have pensions you do not need to worry about claiming healthcare and there is no legal obligation to register with anyone other than the marie and the douanes. you will need a star rating with someone for the 71% but as you get that then you must be, we use the local tourist office and pay 20 euros per year for that.

pete

French Cricket wrote:Everything hinges on the definition of 'habituel' (regular). We operate as a cdh, but on a small scale and as supplementary incomes for both of us. We don't let all the time, out of choice. We're registered with the mairie, but not with the RCS as because of the sporadic nature of how we operate I consider us to be non-professional (in the fiscal sense, that is!) - and all the advice I've gleaned from Accueillir magazine, who are very clued up about this sort of thing, has supported that.

Same here. And our accountant who is very informed and upstanding is entirely in accord with your reasoning.

pete wrote: you will need a star rating with someone for the 71% but as you get that then you must be, we use the local tourist office and pay 20 euros per year for that.

pete

Pete, you don't need to be rated as a cdh to get the 71% abattement - you get it automatically (unlike gites, who do have to be rated to get it). I believe that it's now a majority of cdh's that (like us) choose not to be rated.

FC, I am sure your right, sorry,

pete

Many thanks for all responses so far. Well, given that most restaurants around me shut during weekday evenings in the winter, I want to be able to offer a meal to guests if necessary. I have just done a 1 day 'formation' for a 'permis d'exploitaiton' so that I could serve wine with this meal. On this day I was asked if I had 'autoentrepreneur' status. When I said 'no' there was a lot of 'tut tutting' from the class who all seemed to have this status. I was told that even if I operated just in the summer or only had a couple of guests a month, this was considered as 'habituel' and therefore I required to be registered with RCS or adopt the 'autoentrepreneur' status. Well, I was told I should be 'proactive' and ask my tax office. Since the tax office has never queried my microBic status - I wanted to make this post to see if others were in a similar situation