Transformation of auto-entrepreneurial activity | how to proceed ?

Your self-employed company is developing and you want to modify your activity? How to change your auto-entrepreneur activity? There are many reasons that prompt you to consider a change and the results can hold you back. Don’t panic! Discover the steps you can take to successfully modify your self-employment company’s activity.

3 reasons to turn your activity into a freelancer

It is possible to turn an activity into a freelancer, but what drives you to make this choice? The reasons can be many! Among the main reasons, it comes up most often:

• Willingness to develop one’s activity towards another enthusiastic area;
• change your strategy;
• a secondary activity that ultimately takes precedence over the main one;
• A revolutionary turning point in your entrepreneurial project;
• e.t.c

grow your side business

One of the reasons for turning your activity into a freelancer is the development of your secondary activity. In fact, you may have built your business with one main activity and the other secondary activity. We are talking about adding activity here.

As your plans develop, your side hustle may eventually become your primary source of income. It is then necessary to modify your auto-entrepreneur activity so that your APE code and your Social Security contributions correspond to reality. It is also possible that your Social Security system will be modified if you switch from a regulated activity relying on CIPAV to an activity associated with the normal system.

direct your activity to a promising area

Your initial project may turn towards an area more or less close to your activity, but more enthusiastic. For example, you have built your business to be an Uber Eats delivery person, and slowly, you want to move on to the concept of virtual restaurants, which is very fashionable since the COVID crisis! So to be able to exercise legally and develop your project you have to change your activity by being self-employed.

radical change of activity

It’s not uncommon to get bogged down when you want to take up entrepreneurship. Therefore, you may decide to start an online micro-business to complete a project close to your heart, only to find that it is not something that inspires you. The good news, auto-entrepreneur status allows you to change the activity as you wish. And all this, without ever closing your business. Thus you can completely switch from one activity to another without any formalities other than notifying the CFE (Centre des Formalités des Entreprises) in a few clicks.

Formalities to be completed for modifying the activity of Self Employed Company

The transformation of auto-entrepreneur activity is very simple, and directly online. All you have to do is visit the autoentrepreneur.urssaf.fr website. Once logged in to your personal space, here are the steps to follow:

• In the “Manage My Self-Employed” tab, click Move ahead ;
• Then click “Edit My Activity”;
• A P2 form opens, in which you tick “Modification of Activity”;
• In the “You modify your activity” section, you enter your new activity and the effective date;
• You finish filling out the form with the requested information (address, secondary activity, email, etc.) and validate your request.

All you have to do is attach the required supporting documents:

• copy of an identity document;
• Title or authority to practice regulated activities.

and that’s all !

Note that it is still possible to complete this paperwork by printing the P2-P4 form in duplicate, which you send along with all supporting documents directly to the CFE you rely on.

Consequences of a change of activity for a self-entrepreneur

If it is easy to modify the activity of a self-employed entrepreneur, it should not be forgotten that it can have many consequences.

Turnover and VAT ceiling

Not all activities display the same turnover and VAT ceiling to be able to benefit from the tax benefits associated with auto-entrepreneur status. As a reminder, these are:

• For commercial activities: €176,200;
• For crafts and eclectic activities: €72,600.

Similarly for VAT, the exemption applies to:

• €85,800 for commercial activities;
• €34,400 for crafts and eclectic activities.

As a reminder, you are liable for VAT from the month after you cross the border. On the other hand, after 2 years of crossing the turnover limit you lose the quality of micro enterprise.

Social Security Contribution and Vocational Training Contribution

Here too, their rates vary depending on the nature of your activity. Thus, changes in auto-entrepreneur activity may increase or decrease your contribution and CFP.

The contribution rates on your CA are as follows:

• 12.8% for commercial and housing activities;
• 22% for crafts, eclectic activities (excluding CIPAV) and commercial service provision;
• 22.2% for self-employment activities associated with CIPAV.

The vocational training contribution amount is as follows:

• 0.1% for commercial activities;
• 0.2% for self-employment and service-providing activities;
• 0.3% for craft activities.

to tax

Switching to auto-entrepreneur activity can eventually have consequences on your taxation. Actually, here too the nature of your activity has a direct impact on your tax deduction. As a reminder, the micro-enterprise plan allows you to benefit from the automatic fixed reduction of your business. This amount is:

• 34% for BNC category;
• 50% for BIC service provision activities;
• 71% for commercial activities in the BIC category.

The rate of discharge payment also depends on the nature of your activity and the following amounts:

• 1% for sales, catering and accommodation activities;
• 1.7% for craft activities and commercial service provision;
• 2.2% for generous activities.

How much does activity modification cost?

Online Activity Modification is completely free. It will be necessary to count the value of postage by post. However, it is possible that the change in your activity involves investments and purchases that will not be deductible from your turnover!

questions to ask