13 minute read
Business
HELEN BOOTH
INDEPENDENT FINANCIAL ADVISER deVere France
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Financial Health
Well, another year has flown by and you are all probably gearing up for the Christmas festivities. It has been a very interesting, different, and worrying year with a lot happening again. Covid 19 is still having a major impact on travelling, holidays, day-to-day journeys, and the economy and the stock market, but things are getting more stabilised as people get used to mask wearing and sanitaire passes. I hope that everyone who is reading this has managed to stay safe and well - look after yourselves and your loved ones. Brexit has continued with issues that are coming to light even after a year has gone by. These include restrictions on what goods can be brought into France, tax on the goods, issues regarding banks closing accounts (and now some UK credit card companies are following suit), and restrictions on how you can access any pension pots. Around the world there have been climate change issues with countries being impacted by different weather cycles. And in the news, the Panama papers and Joe Biden as the new president of the USA. As you all get ready for Christmas and the New Year with your loved ones, and perhaps have more time to yourself, now is a good time to reflect on your financial goals, how the above has impacted you, and what you would like to happen next year for your financial health. There are steps you can take to get better currency rates, get more growth on your hard-earned savings, and protect your pensions that you have if they are still in the UK. − Do you have an idea of what your income will be when you retire? − When was the last time you made changes to your retirement goals? − Have recent events affected your retirement goals? − Is there a shortage in your retirement savings? − What effect will Brexit have on your UK based pensions? − Will you have access to your UK based pensions? − Are you planning on relocating to France permanently? − Will you be sending money back to the UK or transferring from the UK? You might need forex services that don’t charge a fortune in fees. So once the festivities are over and you have finished that last bottle of wine and had the last mince pie, do something about your financial health. Make sure that your financial goals are still on track. Make it a New Year resolution to have a thorough review by an independent qualified financial adviser. Wishing everyone a Happy Christmas and a Happy New Year.
There are steps you can take to get better currency rates, get more growth on your hard-earned savings Please note, the above is for education purposes only and does not constitute advice. You should always contact your adviser for a personal consultation.
For many, bringing home the bacon can only be achieved if you are selfemployed in France. And becoming selfemployed has seen several changes over recent years. No matter what your business is, there are many hurdles throughout the self-employed journey. As of 2018, there were an estimated 3 million self-employed in France, 1.3 million behind the UK. Many non-natives feel that being self-employed is not ‘encouraged’ as much as we see in other countries and that there is little support. Many online processes are frustrating and it’s easy to get in a pickle. So, in reality, it might be better to do it right the first time with the help of those who know, a trusted hand-holder. Of course, hand-holders experience challenges too. But they have the language skills and knowledge of the process from beginning to end. They will save you much frustration in the long run by not having to correct something further down the line. Once registered and sireted you are the boss of your company! And the company is you! You will be wearing many hats; marketing, sales, administration, as well as doing your day job. There will be an increase in workload, so expect to start out working more hours, not less. And depending on your business, achieving a work-life balance might be tricky. Another sticking point is the paperwork! Yes, France is famed for its endless bureaucracy. Just when you think you have nailed it, something new lands in the letterbox or inbox that can cause angst. Some of it seems pointless and nonsensical, and it doesn’t change whether you are an ME or SARL. As well as the day-to-day running of your business and bringing home the jambon, other priorities will need your attention. For example, what will happen if you cannot work? How will you provide for your retirement? Despite the feeling of lack of support, it is down to lack of knowledge or understanding much of the time. France provides a raft of help and support. It’s just a case of knowing where to go and speaking with the right people. So while there are many challenges to working in France, many of us wouldn’t change it for the world. You get used to the bureaucracy. Your knowledge of working in France broadens, and you realise you are not alone! We get to work in a beautiful country. We get to enjoy a much more peaceful and slower way of life (if we choose to). Get your business set up the right way with a first-class hand-holder – one who knows what they are doing. A suitable handholder will know many other valuable people you will need to know about throughout the selfemployed journey. Get your plan together. If your business is making money and growing, get yourself geared up for the next regime to factor in the ‘just in cases’ such as sickness and your future pension. It’s important to enjoy doing what you are doing, no matter where you are.
MICALA WILKINS
ALACIM SOCIAL MEDIA MARKETING
TONY FARRELL INTERNATIONAL FINANCIAL ADVISER The Spectrum IFA Group, with over 20 years’ experience advising expatriates throughout Europe on all aspects of financial planning T: 05 55 89 57 94 E: tony.farrell@spectrum-ifa.com
TSG Insurance Services S.A.R.L. Siège Social: 34 Bd des Italiens, 75009 Paris. R.C.S. Paris B 447 609 108 (2003B04384). Société de Courtage d’assurances. Intermédiaire en opération de Banque et Services de Paiement. Numéro d’immatriculation 07 025 332 – www.orias.fr Conseiller en investissements financiers, référencé sous le numéro E002440 par ANACOFI-CIF, association agréée par l’Autorité des Marchés Financiers
Let’s talk currency
Sue Cook
Regional Coordinator Centre Ouest 87600 Rochechouart +33 (0)555 036 669 +33 (0)689 992 889 E: sue.c@currenciesdirect.com www.currenciesdirect.com/france
Siret: 444 729 008 00011
Advertise Your Business Contact Sam or Gayle: editors.etcetera@gmail.com
ISABELLE WANT
BH ASSURANCES
Is opening an assurance vie savings account viable after you reach 70? YES, because the amount you invest from this age is entitled to a death duty allowance of 30 500€. This allowance is added to the one you were already entitled to before you were 70 years old (152 500€ per beneficiaries). Example: You have invested 305 000€ in an assurance vie savings account before you were 70 years old and named two beneficiaries. This sum of money will be given to your beneficiaries named without any death duties (152 500€ allowance per beneficiaries). After you’re 70 years old, you open a new assurance vie saving account with 30 500€ and name the same two beneficiaries, you can therefore pass on to them free of any death duties 335 500€ (305 000+ 30 500). Furthermore, the interests or gains made by this contract are not liable to death duties. Example: You invest 30 500€ after your 70th birthday. On your death at the tender age of 85, this assurance vie savings account is worth 40 000€ (30 500€ of capital and 9 500€ of interest). The beneficiary you have named will get the sum of 40 000€ without any death duties. As a reminder, here are the allowances before death duties in France (outside Assurance vie saving account): Children : 100 000€ Grandchildren : 1 594€ Brother or sister : 15 932€ Nephew or niece : 7 967€ Other : 1 594€ Example: You wish to leave a lump sum of money to your grandson upon your death. You write a will in which you state that you are leaving him one of your savings accounts currently in your bank (like a Livret A or PEL) of a value of 20 000€. On your death, your grandson will have to pay death duties on 18 406€ (20 000€-1 594€). If you invest this money in an assurance vie savings account and name your grandson as beneficiary, he will have no death duties to pay at all. So, whether you have opened an assurance vie before you were 70 or not, it is worth thinking of opening a new one now!! No, this is NOT life insurance!! Assurance vie is a savings account! Assurance vie savings accounts have been so successful that today there is over €1.5 trillion invested in Assurance vie policies. Over 22 million individuals have either invested lump sums or saved regularly using this instrument. General information on assurance vie: It’s a savings / investment account. The money you invest is available at any time. You name beneficiaries when you set it up. You are only taxed on interest, not capital (and only when you take money out). You can set up regular monthly, quarterly or yearly withdrawals from it. You can invest one lump sum (min €5000) or regular monthly amounts (min €100/month) or both! You can check what it is doing via your online customer account.
Assurance Vie Savings Account, over 70s
This cover is quite good in regards to hospitals as it is 400% cover and also up to 150 euro per day for an individual room Isabelle Want 06 17 30 39 11 Email: isabelle.want @bh-assurances.fr
22 rue Jean Jaures. 16700 Ruffec Tél:+33 (0)5 45 31 01 61
10 Bd du 8 mai 1945 16110 La Rochefoucauld Tél:+33 (0)5 45 63 54 31 102 Avenue de la République 16260 Chasseneuil sur Bonnieure Tél:+33(0)5 45 39 51 47
2 Avenue de la Gare 16270 Roumazieres-Loubert Tél:+33(0)5 45 71 17 79
Cotisation Foncière Des Entreprises (CFE)
There are a number of small business owners that have received a letter in the post from the services des Entreprises in October/November to remind them of the necessity to have an espace professionnelle. This is to be able to receive and pay their CFE bill.
Principle
The cotisation foncière des entreprises (CFE) is one of the 2 components of the economic territorial contribution (CET) along with la cotisation sur la valeur ajoutée des entreprises (CVAE). Unlike the professional tax, from which it gets most of its rules, the CFE is based solely on property subject to taxe foncière. This tax is payable in each municipality where the business has premises and land.
Businesses concerned
The CFE is due by companies or small business owners who perform habitual self-employed professional activities, regardless of their legal status, their business or their fiscal structure. Businesses which provide property rentals (apart from those that are empty and rented out for homes) are affected by the CFE. Even those who previously had the right to an exemption as furnished tourist rental included in the main residence of the owner will find they have a bill, if not classified. There are certain businesses that are permanently exonerated from paying this tax, such as mobile hairdressers, so you can always check with the tax office.
Professional or non-professional Businesses
This tax concerns companies, small businesses and microentrepreneurs.
Important for very small Businesses
For those businesses with less than 5 000 euros turnover per annum, they are now exempt from CFE. So check online to see if your bill is zero.
Calculation and tax base
The rate of the CFE is determined by the commune or the Communauté des Communes in which the property is situated and is based on the rental value of the properties used by the company for the purposes of its activity. Minimum contribution - When the rental value is very low, a minimum contribution sum is established by the commune. The amount varies depending on the total turnover. Those businesses working out of their home are generally given the minimum contribution to pay. Please refer to the table below. With the CFE bill is added the taxes linked, for those businesses who are not micro entrepreneurs, to the functioning of the Chambre de Commerce and the Chambre de Métiers. This can increase your bill by between 90 and 200 euros for small businesses.
Exonerated Activities
There are a number of activities that are exonerated from paying CFE, these include farmers, artists and authors etc. For a more exhaustive list, visit www.service-public.fr/professionnelsentreprises/vosdroits/F23547
Tourist rentals businesses classified - Meublés de Tourisme
There are rights to exoneration from the CFE for B&B businesses or gîtes that have been classified. I have talked about the classification system in previous articles. Declaration - There are no annual declarations to return. However, a statement 1447-M must be filed before the 2nd working day following 1st May by companies: ▪ that demand to benefit from an exemption ▪ if the business has moved or opened a second address ▪ that want to report a change in use or modification of the surface of the property subject to the CFE. ▪ that have modified their number of employees ▪ that have terrestrial wind, solar or hydro installation with 100 kW of minimum power.
For new businesses
The CFE is due by businesses which are active on 1st January of the year, so newly created (including the new micro/ auto entrepreneurs) businesses are not subject to it in the year of their creation. Then, for the 1st year of taxation, they benefit from a reduction of half of the tax base. For those businesses situated in certain geographical zones or certain industries, who produce accounts, there exist further exemptions for the first three years and then partial reductions for up to a maximum of 15 years. The business creator or purchaser must file a form 1447-C-SD, before the 31 December of its first year, so that the elements of tax for the following year are established.
Less than 5000 €
Between 5000 & 10 000 €
Between 10 001 € & 32 600 €
Between 32 601 € & 100 000 €
Between 100 001 € & 250 000 €
Between 250 001 € et 500 000 €
LINDSEY QUERIAUD
OWNER: CAST T: 05 45 84 14 94 lindseyqueriaud@outlook.com
Payment
Since 1st October 2014, businesses no longer receive their tax bill directly by post. This is because they must be consulted and paid via an online pro tax account. The CFE bill must be paid in total before 15 December each year, net of any deposit paid on the 15th June (where applicable). ▪ online payment via the online tax account ▪ prélèvement mensue l- monthly direct debit (possible inscription until 30th November) ▪ prélèvement à l'échéance (payment on final date) ▪ or a one off direct debit by card via the impôts website.
zero
Between 223 € & 531 €
Between 231 € & 1061 €
Between 218 € & 2229 €
Between 218 € & 3716 €
Between 218 € & 5307 €
