Lay My Hat

You may have heard that if you earn more than 23000€ from your gites you have been liable to pay Cotisations Sociales on the amount over 23000€ since January 2017. If your gites are "classés" the amount isn't too much...for me with 3 gites declaring my earnings as LMNP under the Micro-Bic system it will be about 600€. A lot more if your gites aren't classified. Originally it was just Airbnb rentals but now it is all rentals.

https://www.urssaf.fr/portail/home/espa ... enera.html

Of course the French system being as it is, you will never be asked directly for this payment although the tax office may send your information to the Cotisation Sociales people. It is up to you to know that it must be paid. In a similar way you may get the 71% reduction on your tax even though your gites are not "classés" but if the tax office finds out your gites are not classified you will be liable to pay the difference going back 5 years.

I have done my declaration and I asked them how were people meant to know that this even existed. They said there will be advertsing and also your tourist office should know about it!

Sorry to be the bearer of bad news!

Debby - Les Gites de Kerdalidec

Hi Debby, we have been running gites since 2013. This year we were subjected to a 'controle' by our local tax office when they went through our previous tax returns. They claimed that we hadn't been paying prélèvements sociaux and had to pay them and were also fined for late payment, despite telling them that we had thought we had filled in our tax returns correctly and were not aware that we weren't paying our contributions. In the end we ended up paying an extra 1416 € and 2468€ on earnings of 21351€ and 19958€ respectively. This year we are going to go through the tax form with the tax office before we submit it to make sure we get it right.

More than ever, if you're unclear about tax and social charges you should use an accountant. You'll sleep easier and it's cheaper in the long run (his fees are, of course, tax-deductable).

Mols

Moliere wrote:More than ever, if you're unclear about tax and social charges you should use an accountant. You'll sleep easier and it's cheaper in the long run (his fees are, of course, tax-deductable).

Mols

+1

Hi Moliere and Ecosse, I agree, I used an accountant for the first year and followed what he had done since then, maybe its time to go back and review the situation with him again.
Unfortunately, as autoentrepreneur nothing is tax deductable so I can't claim that back as far as I understand, unless anyone can tell me differently.

I think it depends on what regime you're on, Dusty: we're autoentrepreneurs but are on 'regime reel' so we can claim expenses against our tax bill. Not sure if you can change regimes once your registered as a particular one, mind, though, if you do go down the line of an accountant, they may be able to advise you on that as well.

I don't think we can rely on our local tourist offices telling us anything useful. Mine send me news, occasionally, of events they are organising (to justify their existence) and send me the bill for the taxe de sejour but otherwise they've never shared any information I may need to run/plan/improve my business.

yes it is about 15% taxes and will go up in 2018 to 17,5%...
This is for people who are not registered as a business (AE or other).