Want to create a self-employed business in personal services? Before you start, discover all the particularities of this activity: approval, authorization, tax benefits and procedures to follow. What are Human Services?
Personal service activities refer to trades carried out in the homes of individuals. Your mission? Help them in their daily lives or support them to cope with particular situations (dependence, chronic illness, disability …).
In accordance with article L7231-1, the 26 professions of the Service à la Personne (SAP) can be classified into 3 main categories:Assistance to dependent persons (mobility assistance, support in travel, assistance in daily acts, etc.)Family services (e.g. child care)Services directly related to daily life (household chores, DIY jobs, computer assistance at home, etc.)
More than 1.3 million people work in personal services in France, but there is still room in this market! The ageing of the population is leading to an increase in needs, particularly in the care of the elderly.
There are activities incompatible with AMPs and the micro-enterprise regime, including the profession of home childminder. It requires to be an employee. Home gardening carried out as the exclusive activity of your micro-enterprise is also not possible because it is considered an agricultural profession. Tax benefits for your customers
If you file a personal services return, you can provide your clients with significant tax assistance. These are a strong argument to convince potential customers who will be able to benefit from a lighter bill. The tax credit
When an individual uses a personal service home contractors professional, 50% of the expenses incurred can be deducted from income tax.
For example: Marie uses a home childcare service charged €15 per hour, 4 hours per week, 40 weeks per year. She therefore spends €60 per week, or €2,400 per year. 50% of this expense will be deducted from his income tax, i.e. €1,200.
Note that the amount of the tax credit can be paid up to one year after you apply for it. In addition, if the amount of the tax credit is greater than the amount of your client’s income tax, your client will be reimbursed the surplus or all (if non-taxable) by the tax authorities.
For example: Let’s go back to Mary’s example. She has an income tax of 1,165 euros. Since her tax credit amount is higher than her income tax (1,200 > 1,165), she can benefit from a refund of the surplus or its totality!
Since June 2022, the Immediate Advance set up by Urssaf and the Directorate General of Public Finance, makes it possible to deduct the amount of the tax credit from the payments that the individual must make to personal service organizations.
For example: Marie’s €1,200 tax credit is deducted from the payments she must subsequently make to human service organizations.
The ceiling up to which individuals can benefit from tax credit is set at €12,000 per year. The latter can evolve up to € 20,000 per year depending on the number of dependent children or the presence of a disabled or dependent person.
Certain personal service activities are eligible for fewer tax credits. DIY is subject to a ceiling of only €500, IT assistance at €3,000 and gardening at €5,000 per year. Pre-funded CESU
CESU (Universal Service Employment Cheque) allow individuals to easily pay personal service providers.
Many people can benefit through their company from CESU vouchers, in the same way of operation as restaurant vouchers. One more way to lighten the bill for households and a selling point for you!
As an auto-entrepreneur (or micro-entrepreneur), you can accept pre-financed CESU as a method of payment. On the other hand, you will not be able to be paid in declarative CESU.
Maryline works in a slipper factory: stuffed slippers, cozy tap dancing or molded ankle boots in the shape of animals punctuate her daily life. His committee gives him CESU checks of 80 euros. She employs Josie to look after her daughter 15 hours a month, at 12 euros an hour. Every month, she pays 180 euros. So she uses her CESU checks of 80 euros with Josie and pays her the remaining amount, that is to say 100 euros!
The adventure of auto-entrepreneur tempts you? Call on our experts! Enjoy a quick and simplified constitution of your file and the unlimited assistance of our advisors of the Auto-Entrepreneur Portal!
I CREATE MY SELF-ENTERPRISEDeclaration, approval or authorization?
As you can see, offering these benefits to your customers is essential to advancing your business! To achieve this, you need to obtain an approval, an authorization, or make a simple declaration. What are the differences between these terms? Let’s explain! 1 – The declaration, a mandatory condition to offer these tax advantages
The SAP declaration concerns the vast majority of human services activities. It is optional but can be obtained for certain professions in accordance with Article D7231-1 of the Labor Code. The activities concerned include home maintenance, tutoring, aesthetic care at home, computer assistance at home or the preparation of meals at home.
This declaration, which may not be mandatory, is still strongly recommended! What for? It is thanks to this declaration that you will be able to benefit from the tax advantages to your customers.
Be careful, once this declaration has been made, you will have to comply with an important obligation: work exclusively for individuals and undertake not to combine this service with another type of professional activity.
For more information: All about reporting personal services2 – Activities subject to accreditation Accreditation: definition
You want to dedicate the activity of your micro-enterprise of services to the person to the fragile public, so you will have to obtain an approval issued by the State!