Install the office at home has become very common these days. It is a matter all the more advantageous because of the low cost of investment and the flexibility of working hours. It also saves money as there is no way to perform. If you decide to start a home business, make good choice of the tax system to be adopted to take advantage of your winnings as vis-à-vis the French tax authorities, you must report your income.


Home work and tax

As an individual entrepreneur, the first thing to do is to define the status of your business. The creation of a limited liability company requires the environment of a lawyer and an accountant. However, their fees are already swallow 20% of your starting capital. However, if you are sure to make a profit of over 60 000 Euros, it would be more appropriate and recommended to enroll in this form of society. Then you can optimize your tax situation, social and financial. And you so increases the tax and social security and you will increase your cash flow.

However, the most simple and least expensive is the sole proprietorship. If you choose a company solo, go for a micro-finance a specific tax regime the individual enterprise. Its advantage is that its implementation is simplified. For this system, two cases may arise. In the first case, if your occupation is commercial (in the craft, trade or industry), you will be subject to the tax BIC and Industrial and Commercial Profits. Your accounts will be reduced revenue and expenses. You will make a unique statement. You may also be subject to VAT. But there is still a little problem: your activities will be grouped in accounting TTC. Also, you can not reclaim VAT on purchases you have made. This plan is made for companies with a turnover low and stable and does not plan to expand their activities.

In a second case, if you are a professional, you will be taxed to the plan BNC or non-commercial profits. This applies if your income does not exceed 27,000 Euros per year. You will be granted an allowance of 35% on your taxable income. In addition, you will be exempt from reporting professional and deposit you will not pay VAT.

Homework: income tax and deductible expenses

Whether you are taxed under the Commercial Industry Profits (BIC) or under non-commercial profits (BNC), you have to pay like everyone else’s income tax. And if your homework is suitable for both profiles, it will be the most profitable activity that rewarding tax. When you start creating a company with individual form, your personal and business acquisitions are unequivocal combined. But when the time comes, you will need to complete two tax returns: one for your earned income and one for your personal income. The second statement, you transcribe the extra taxable profits of your business.

VAT is an indirect tax, it will be paid by your customers. But if the annual sales-tax is very low, you will agree the amount payable with the administration. Otherwise, if you are VAT registered, you can choose between three different regimes: the regime normal real, real simple or real super simplified. If you run for the first time in an activity that best fits the actual speed is simplified. You will have to make a statement every quarter and so it allows you to keep a regular eye on your belongings. But plans to take will depend mostly on your sales. If you want to supply the tax only once during the year, the simplified super regime will suit you. Otherwise, you can take the actual speed normal monthly payment.

As an employee, you will also benefit from a reduction of your wages for professional expenses. The rule is that all your expenses are deductible for professional, be it travel, meals or rent if you rent. However, no fee schedule is imposed and you will only follow the logic. But it will choose between the deduction of actual costs and the package of 10%. The key is being able to justify each of the deductions in the tax return. Beware, therefore, not to lose all your bills as they are important for taxation.