Thursday, 28 January 2010

What are the advantages of auto-entrepreneur status for an EFL teacher?

In order to work in some Parisian language schools, teachers are being required to have auto-entrepreneur status. We can all see the benefits to the employer : no paperwork, no employers’ charges on your hourly rate, no obligation to give regular work.

But what is in it for you as a teacher?

You only pay tax or social charges on your real earnings. If you earn nothing, you pay nothing.
These social and fiscal charges will represent a maximum of 23% of your turnover for services (consulting, private lessons, workshops).

You diversify your client base and manage the quiet months better : with A-E status, you can work in higher education (universities or business schools), language schools, and/or with private clients (individuals or businesses) doing teaching, coaching or translation.

You become easily employable, from 5 hours to 500 hours’ work, invoicing each employer at the end of the month.

So, where’s the catch?
Unlike the “independent” status, you can’t claim VAT on purchases, transport costs (monthly travelcard) or lunch expenses.
So, no “free” lunches, laptops or iphones…
And your earnings are capped at 32 000 € per year.

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