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The problemWith his return Gilles seems doubtful

Since a few weeks (and June 10.17 or 24 on the internet according to the Department), the French are in front of the exercise of the Declaration of income taxes. The self are not spared. With a small additional puzzles, which began just to untangle. Many are those who have opted for the levy at source which have the sense of having been cheated. Here is why.

The problem

With his return, Gilles seems doubtful. The contractor for the first time has opted for the levy at source which allows to carry out the tax from its sales each quarter. "I thought naively that"legal tender"meant that I was"released"from pay me any tax on my sales." What a surprise when I saw that on the Declaration, it should indicate the amount of my CA. Not to mention the shock when I saw this increased my taxes! "On the forums, so are many. Are indeed affected the self with other sources of income. "Using the Simulator to calculate the 2009 income tax, I realized that reporting income of self as well as my wages, increased my taxation, while I agreed, and paid the levy at source of IR, explains Loïc, contractor and an employee." If for example for a single person you enter income of 20 000 euros in 2009 (box 1AJ), full time, the IR to pay is 1 201 euros. If you add income from self (box 5TE), of 10 000 euros, the IR to pay passes to 1 555 euros. I've been at the centre of the tax to me, I then had people on the phone (for individuals, then the business service), I did not have an explanation on the difference of tax to pay.

The explanation

Little by little, with the number of reactions in this sense, tax services explained. First thing to know: contractor activity revenues should not be worn on the 2042 form classical, but on form 2042C, box 5TA, 5 TB or 5 TE depending on the nature of your business. Contrary to what many self thought, Yes, even choosing the levy at source, the income derived from this activity must be mentioned on the tax return to determine the tax income of the reference. In fact, the problem of unclear wording in the first place. Because actually, tax services confirms well that revenues collected and reported under the regime of the contractor not taxation, support the legal tender payment having been made. However, the amount is retained, after application of a discount of 34, for the calculation of the effective rate of taxation to other income, wages. Wages are thus taxed at the rate provided for taxation of revenues collected under special declarative scheme or micro-BNC. Because of this inclusion, the tax rate is automatically increased and therefore the tax also.

In practice

Wages 20,000 revenue 10 000 total income after application of respective deductions, 10 for salaries and 34 for non-commercial income. Net wages 20 000-(10 20,000 x) 18 000 net revenue BNC 10 000-(34 10,000 x) 6 600 Total 18 600 6 600 24 600 is determined tax (24 600 x 0.14-1 319,33) 2 125 (1 319,33 represents the amount deducted for the purposes of the scale for a single person with a tax income of 24 600, i.e. within the range of income 11 720 to 26 030) to submitted income tax deduction the clearance payments: (66 x 10,000) x (2 125 / 24 600) 570 either IR 2 125-570 1 555

Reactions

Of course, once explained, the situation is thinning. But tempers among some self. A retired contractor plans even to stop his activity: "I paid quarterly and contrary to what announced us, I change tax rates: I changes from 5.5 to 14 and I have to pay 450 euros in additional taxes." In the brochure official "contractor", noted: "Finally, this one-time payment of social and fiscal burdens do will result in no bad surprises." "This contribution is unique, there is no VAT, no tax on the title of your self-employment income and professional tax in the first three years." If change tax rates, by declaring his sales business on which it has already paid a tax payment, leads a increase in the income tax, I call it the lie! Also as I am retired, with 450 euros in taxes to pay more, I stopped my activity!

In conclusion

For the income of the self, the rule applies, it is the rule of the effective rate, where all income of the household are prices into account, and so even those from the activity of self. Of course, if you get micro with therefore levy at source plan, you do not have to pay twice the income tax. But your overall income tax rates will be higher than you would have had to be applied without this paragliding Logical, therefore, but not necessarily very clear at the outset!