How much do I keep after charges as a French micro-entrepreneur?
To estimate what you keep as a French micro-entrepreneur, start from collected revenue, then subtract social contributions, optional lump-sum tax payment, business expenses and a safety margin.
Explanation
In the French micro-enterprise regime, revenue is not the same as available income. Part of it goes to social contributions, another part may go to income tax if you selected the lump-sum tax payment, and you also need to account for real business expenses such as equipment, software, fuel, subcontracting, marketing or subscriptions.
The simple formula is: collected revenue - social contributions - optional lump-sum tax payment - business expenses - safety margin = estimated available income.
Keeping a reserve is important. A micro-business can look profitable on paper but become fragile if all revenue is spent too quickly.
Formula / method
Available income = collected revenue - social contributions - optional tax payment - business expenses - safety margin
Concrete example
Example: you collect €1,000 from a service. If social contributions are around 21.2%, with €100 in business expenses and a 10% safety margin, you should not think of the full €1,000 as income. The available amount is closer to €588, before income tax if you did not select the lump-sum tax payment.
Common mistake
The common mistake is confusing revenue with income. Revenue is money received, not money you can freely spend.
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