Turnover limit on auto-entrepreneur scheme may be dropped

While nothing has been officially confirmed, the €19,000 turnover limit on the auto-entrepreneur status looks to have been dropped in proposals set to be put in front of the French cabinet.

Business newspaper, Les Echos, says it has seen a copy of the proposals to be announced on 21 August, and there is no mention of the €19,000 cut off point.

This maximum turnover level caused great anger amongst auto-entrepreneurs when it was first put forward by minister, Sylvia Pinel.

The minister said that businesses would be forced to register on the classic scheme and be provided with training if they hit the maximum turnover level for two consecutive years.

Considering how confused and unclear the government has been over what changes it wants to bring in for the auto-entrepreneur scheme, it is worth waiting until the official announcement and hopefully people will be able able to make an informed decision then.

Blog submitted by: David at Cle France.

Comments

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Sharon Evans

- 2013-09-02 at 06:04pm

This is good news as the 19,000 limit was going to be restrictive and making the jump to charging TVA and paying VAT did cause difficulties for some, this should free up more opportunities for people moving to France and starting their own business. Just got to buy that dream house in France now!

David

- 2013-09-05 at 06:55am

(author)

Update... The reform of the auto entrepreneur system has been suspended, the review of all small business structures is still underway but a big debate is currently taking place in the French government about the proposed reform of the auto-entrepreneur regime.
Sylvie Pinel (minister for small businesses) has proposed to reduce the turnover limits for auto-entrepreneurs and to limit the status to a small number of years.
The strong construction industry consider that auto entrepreneurs have an unfair competitive advantage compared to those on the full tax regime.
A report is expected early next year, when the final conclusions are unlikely to come into full effect no one knows but it will not be before 2015.
There needs to be a simplification of the range of small business structures in France to encourage individuals to set up in business and the chairman for small businesses is trying to push through changes to the auto entrepreneur regime so it is easier to manage.
So with some trying to restrict it and others trying to give it more freedom… anything can happen! politicians eh?