French employment and tax rates

mumhancox

Hi. I'm not sure if anyone can help. - I'm currently dating a great English guy who owns a resturant in France. He opened it 18 month ago. But is being crippled by employees tax and nic. He yesterday received a demand for three months tax of 3000 euros!!! He is that down he thinks he is going to shut the place and walk away. He has one part time lady twenty hours a week. At ten euros net per hour. And had up to end march a guy at same rate thirty hours a week. He had to get rid of the guy as he couldn't afford him. But had to pay him a bonus of 1300 euro. Does any one know how the French work out their employees tax and nic please xx

agrinnall

Surely he must have researched this before starting a business in France, if he didn't then I think his venture was doomed before it started - to be fair, that is the fate of most restaurants anyway, but he certainly won't have helped himself if he doesn't know what he needs to earn to cover his costs.

Here's a link to a site that has some information in English, whether it's correct or not I can't say but it may be a starting point.

http://www.expatica.com/fr/finance/A-guide-to-taxes-in-France_101156.html

worried_jim

Sounds like you'll be moving to France soon to work in the restaurant!

mumhancox

Hi - thank you for replies - no I won't be moving France. I agree the research was not done. But visiting here I see so many others that have brought with their heart!! I am trying to check out the accountants figures. And also the fact I have googled and it states the first two years a business has very little employee social costs to pay. I asked his accountant. But was dismissed, she was very put out I even queried her!! Therefore I'm asking on here!! A useful link. Thank you x

engineer_amy

As a very simple guide, paying someone 10 euro net per hour will cost approx. 17 euro per hour gross. So that additional 7 euro per hour times 20 hours per week for the lady and 30 hours per week for the guy, times 13 weeks in 3 months comes in at 4550 euro for the social costs.
so the accuracy of his bill for 3k will depend on how many weeks the guy was employed for, any allowances, or individual circumstances . employing local people in france, Belgium and Netherlands is very expensive from experience.
im not aware of any allowances or reductions for new employers, you would need to consult a professional with experience of French tax legislation. you can only get so far with google