Do you have an auto-entrepreneur activity, or rather a micro-entrepreneur according to the new official term? You must still declare your income, even if you have most often already paid tax at source.
Two options are available to auto-entrepreneurs for income tax: either the free paymentlump sum, which allows you to pay income tax at the same time as your contributions to Urssaf; either the common law system, in other words the progressive scale after an allowance for professional expenses. This choice, you made it a long time ago: the free payment option must be requested when creating the activity, or no later than September 30 preceding the year in question. And depending on the option you have chosen, your 2022 tax return will not be exactly the same.
Option 1: you have chosen the tax free payment
Did you choose the libratory lump sum payment for the 2021 income of your micro-enterprise? In this case, you have already paid income tax, for these specific resources, a tax rate of 1% (sale of goods), 1.7% (provision of services) or 2.2% (activity liberal). A flat-rate tax, accessible under conditions (1)paid at the same time as the social charges, with your local Urssaf fund.
You must still declare your self-employed income, even if you will not pay additional tax on this specific income. A section is dedicated to this configuration: check Micro-entrepreneur (auto-entrepreneur) having opted for the free payment of income tax (appendix 2042 C PRO on paper), step 3 of the online declaration. Then fill in your 2021 gross revenue, or your gross receipts, the corresponding row: 5TA (sale of goods and similar) or 5UA for the co-declarant, 5TB (provision of services and rental of furniture) or 5UB (for the co-declarant) or 5TE for non-commercial income (or 5EU for the co-registrant).
How to declare the reduction in Covid contributions
Faced with the health crisis, micro-entrepreneurs in sectors known as S1 (tourism, hotels, catering, sport, culture, air transport and events), S1 bis (sectors whose activity depends on that of sectors 1) and S2 (interrupted activities due to the Covid-19 epidemic, except for voluntary closures) benefited from a reduction in their contributions last spring, then summer and winter.
Dedicated boxes are provided in this 2022 declaration for the turnover that has been the subject of this exemption from charges, for self-employed entrepreneurs who have chosen the discharge payment: line 5TJ and following for sales activities, line 5TK for services, line 5TL and following for the micro-BNC. Fill in the amounts for the months concerned by this reduction.
You had taken the option but you are no longer entitled to it
You had chosen the lump sum option, but you are no longer entitled to it? This situation arises, for example, if your 2021 turnover exceeds the authorized thresholds (176,200 euros for the sale of goods, 72,600 euros for other profits), or if your 2019 reference tax income (RFR) exceeded the prescribed limit, namely:
- 27794 euros for a single person
- 55588 euros for a couple without children
If you no longer benefit from this specific regime, your income must be declared under the BIC and BNC headings, to be taxed on the progressive scale, like other earned income. But you must report the amount of payments made to Urssaf in the box 8UY: these payments entitle you to a tax credit to avoid double taxation.
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Option 2: you did not choose the free payment
If you are a micro-entrepreneur but have waived the option of the final payment, the income from your micro-enterprise will be included in all of your resources, and subject to the progressive scale. In the case of a micro-enterprise, with by definition low income, these resources come under the micro-BIC (industrial and commercial profits) or micro-BNC (non-commercial profits) regime. Good news: you are exempt from completing a professional declaration. At the beginning of stage 3 of the remote declaration, tick Professional industrial and commercial income Where Professional non-commercial income (appendix 2042 C PRO on paper) depending on your activity.
The tax authorities apply a deduction to the gross receipts that you declare. This allowance corresponds to professional expenses: 71% for the sale of goods (BIC), 50% for the provision of services (BIC), 34% for services and liberal professions which come under the micro-BNC scheme (consulting activities or other intellectual professions). These allowances are calculated automatically, on the basis of the gross turnover entered. Depending on the income category, three lines may be concerned:
- 5KO (5LO for the co-registrant) for the sale of goods;
- 5KP (5LP for the co-registrant) for services;
- 5HQ (5IQ for the co-declarant) for the liberal or intellectual professions.
In all cases, the allowance is at least equal to 305 euros: clearly, if your turnover is less than 305 euros, you do not pay tax for this category of income.
Have you been taken from the source?
The deduction at source of income tax only concerns auto-entrepreneurs who do not opt for the lump-sum payment. In this case, you will have to pay monthly or quarterly installments, like the self-employed.
How to declare the inflation premium
To give a boost to the French budget in the face of galloping inflation (4.5% annual increase in March 2022, according to INSEE), the government sent an inflation check of 100 euros all taxpayers whose income does not exceed 2000 euros net per month.
As a micro-entrepreneur, you are eligible for this compensation. If you have not yet received it and you meet the conditions for obtaining it, you can file a complaint online via the dedicated platform set up by the government. And if you have received it, know that this financial assistance is tax-exempt. You don’t need to declare it.
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(1) Annual turnover not exceeding 176,200 euros for the sale of goods, 72,600 euros for other services. And a 2019 RFR not exceeding 27,794 euros for a single taxpayer, for this 2022 declaration relating to 2021 income.