Existing businesses registered as professions liberales can switch to the regime micro social and therefore pay their social charges as per the auto entrepreneur system. The switch will enable you to pay your social charges as you go, based on a fix rate of 18.3%. If you currently run an entreprise individuelle under the micro entreprise regime, read on.
As a reminder, profession liberale refers to intellectual based activities registered with URSSAF. For instance consultants, language teachers, personal coach, translators, web designers, programmers, etc. These activities relate to CIPAV for their pension.
Advantages of the Regime Micro Social
- Your social charges are paid according to your real turnover, with monthly or quarterly turnover declarations
- Your social charges rate is similar to the auto entrepreneur scheme: 18.3% for services or mixed activities (trade plus services)
- No lump sum to pay off in N+1 as per the micro entreprise regime. For instance if you registered in January 2008, you will have paid your cotisations along the year according to a general turnover estimate. You will also have had a regularisation de cotisation for 2008 paid in October or November 2009. This is called regularisation de charges sociales and can be damaging for your business if you haven’t saved enough for the regularisations.
- If your business has been suffering from recession, it enables you pay your social charges according to your real activity and not based a booming year.
The drawbacks of the Regime Micro Social
- One and only rate: 18.3% for mixed activities
- Doesn’t apply to entreprises individuelles under regime reel simplifie
How does the switch to regime micro social work
- You need to write to URSSAF in order to request the switch over to regime micro social
- Before the switch is complete, you will need to settle your social charges balance. This amount will be your final regularisation based on your real turnover for 2009.
- Indicate in your letter whether you wish to pay your social charges on a monthly or quarterly basis
- The switch to micro social will be back dated to 1st January 2010
- No impact on your carte vitale. You remain with URSSAF and your chosen “organisme sante”
Deadline to apply for the regime micro social
Since the decree of implementation has been released recently, you have up to the 28th February to apply. Past that deadline any application until 31st December 2010, will only work from 1st January 2011.
How to apply for the regime micro social
Write to URSSAF requesting the switch to regime micro social with a recorded letter (avec accuse de reception from La Poste). Here is a sample letter:
Forum members can access a sample letter requesting the switch to regime micro social.