August 18, 2022

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Need to declare income from carpooling?

As gas prices rise, more and more French people decide to share travel costs by opting for carpooling. Certain income from carpooling must be declared to the tax authorities.

In which case? What are the obligations if it becomes a professional activity?

In which case the income of carpooling should be declared?

Carpooling is mainly organized through online applications (BlaBlaCar, Kombo, Mobicoop, etc.).

These online platforms are required to send a statement to each of their users and the tax authorities after 31st January every year of the transactions carried out and the total amount received in respect thereof.

Note that if the user has less than 3,000 receipts or less than 20 transactions during the year, they are not subject to this obligation.

A person who carpools passengers for income need not report income from this activity if the following three conditions are met:

  • It is a journey undertaken on his behalf;
  • The cost of the trip does not exceed the amount of mileage and is divided by the number of passengers;
  • He also pays for the cost of fuel and a share of the (possible) side effects of this trip.

In this case, since the amounts received are not reported to the management It is a simple cost sharing.

On the contrary, If one of these three conditions is not met, this carpooling activity is considered a non-salaried professional activity. The income must be declared to the tax authorities and the activity must also be declared on the formalites.entreprises.gouv.fr site (which will gradually replace the Guicet-Entreprises.fr site in 2022).

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How to declare carpooling income to tax authorities?

Carpooling income from a professional activity is taxable. Hence they must be declared to the tax authorities. A taxpayer has two ways to declare his taxable income depending on his level of income.

If income is less than 72,600:

The taxpayer is subject to the Micro BIC (Micro Enterprise) regime. This makes it possible to deduct a fixed deduction of 50% from the receipts. Expenses are not deductible. To make the declaration, taxpayers must complete Form n2042 C pro (Line 5NP) when filing their income tax (IR) return. If the receipts are less than 305, he will not pay tax. If he chooses Flat rate levyHe should enter his receipts on line 5TB of form n2042 C pro.

If receipts exceed 72,600:

The taxpayer is automatically subject to the de facto regime (the regime most relevant to professional activities). Then he declares the exact amount of all his charges. He must complete Professional Declaration n2031-SD. He must declare and pay VAT, for which he must use form n3517-S-SD.

Taxpayers subject to the micro BIC regime may choose the actual regime.

If the taxpayer decides to make his declaration online, he will be given a message as part of his declaration process to accompany him.

How to pay social contributions?

Individuals carrying out a professional activity must pay social contributions to unlock their rights to social benefits. Depending on their level of income, they have two options for declaring their social security contributions.

If income is less than 72,600 in 2021:

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The taxpayer chooses the micro-entrepreneur program (to join: autoentrepreneur.urssaf.fr). The amount of social contributions is proportional to income net of fees, with an overall contribution rate of 22%.

Taxpayers can choose the status of self-employed worker and be covered by social security for the self-employed (to join: formalites.entreprises.gouv.fr). He must report his profits on the net-entreprises.fr website. His contributions are calculated by Social Security for the Self-Employed based on his actual profits.

If the income is more than 72,600 in 2021:

In this case, the taxpayer is covered under self-employed social security. He must then register at formalites.entreprises.gouv.fr and declare his profit on the net-entreprises.fr site.