Hi, I’d be really grateful if someone could clear this up for me please?
We had some French friends around on Sunday afternoon for a cuppa and he is registered as an Auo Entrepreneur. He does general building work. He has been under the regime since 2009.
He knows I am an AE too. He told me that I can deduct all of my expenses from my income when I come to do my declarations to RSI each trimester. He went into a great deal of detail about it, saying that I must ask for factures when I make purchases, note mileage snd petrol costs if I travel, note electricity and water costs associated with my business. Keep records of everything and then basically deduct all of it from my income (in my case as a commercial seller, what I’ve sold).
I questioned him a couple of times as to whether he was sure this applied to Auto Entrepreneurs and he was absolutely adamant.
First I’ve heard of it…is he right?
Thanks very much
Jane
That’s what I thought Tracy, hence the question on here and surprise on my part when he said it. The thing is he is absolutely convinced that what he is doing is utterly above board. He Said he keeps records of everything just in case of a control and was astonished that I hadn’t already done it. The fact that he’s been doing it for 5 years without any form of control was what surprised me too.
The whole idea behind the simpler AE regime surely is that it excludes the need for complicated accounting and that’s why we have (had) to pay less taxes and social charges than those on other regimes isn’t it?
Oh for goodness sake, there is oodles of information available that states quite clearly that absolutely no expenses are allowable whatsoever as a AE. Indeed, things may change in the future but your friend is making false declarations and will be caught and found out - soon I hope.
Didn't mean to sound harsh but some people..... (not you Jane, your friend)
Thanks for joining in Brian! The thing was, he told me That since he set up in 2009, he had always done it. He didn’t mention that it is a potential or new thing.
He said that he normally returns declarations of 0 because his purchases and expenses are equal to or more than his income.
I was surprised!
I would like to know as well. We have been told very clearly that we cannot but there are changes coming. Either way I am unable to find out precisely. I have contacted FEDAE on this point but have never had a response from them. At the moment both of us are on one contract as two separate consultants, one of us has flight costs, hotels and other expenses that with a 'change in rules' the people are working with guesstimate, add on the fee and then pay as a split lump sum. In fact in this case it is costing us a bit more than we would like to have laid out against the bit put on the fees for expenses. Since we get single payments each, they are lump sums that are turnover on which we have the social charges, eventually tax but without us being able to deduct our own out-of-pocket costs. If we can (now/soon) deduct costs then we will be very pleased.
So Jane, no answer there but I am joining in your question hoping for an answer.