URSSAF declaration for sole traders: how does it work?

One of the distinctive features of the sole trader (auto-entrepreneur) status is simplified bookkeeping. However, you still need to declare your income to URSSAF throughout the year. Here’s when and how to file your sole trader declaration.

The URSSAF declaration for sole traders

What do the declared amounts correspond to?

The sole trader declaration of your turnover is mandatory, even if that turnover is zero! In that case, you must fill in the dedicated field with “Nil”.

The amount you declare allows URSSAF to calculate your contributions and social charges. However, if you have opted for the flat-rate withholding (versement libératoire), a single deduction covers both income tax and social charges.

For each period, you should only declare the amounts you have actually received. Outstanding invoices, as well as invoices that are due but not yet paid by your customers, must be declared for the following period (or even later, if payment is delayed).

How often should you file your URSSAF turnover declaration?

You can choose between a monthly or quarterly sole trader declaration. The default frequency is monthly, while a quarterly declaration must be requested. The quarterly option applies for the calendar year but is automatically renewed year after year. If you wish to switch back to a monthly sole trader declaration, you must notify URSSAF before October 31, so the change takes effect on January 1 of the following year.

Sole trader URSSAF declaration deadlines

For each declaration, you have 30 days from the end of the relevant activity period.

— For a monthly deadline, your turnover must be declared at the end of the month.

— For a quarterly deadline, the dates are as follows:

• April 30 for turnover generated in January, February and March;
• July 31 for turnover generated in April, May and June;
• October 31 for turnover generated in July, August and September;
• January 31 for turnover generated in October, November and December.

Once your sole trader declaration has been submitted on the URSSAF website, the amount of your contributions is notified to you instantly. You then have one month to pay online.

The specific allowance granted to sole traders

When filing your sole trader declaration, you indicate your type of activity. The applicable allowance rate is then applied and factored into the calculation of your contributions, as well as your sole trader tax declaration.

The flat-rate social and tax withholding included in the sole trader declaration

If you opt for the flat-rate social and tax withholding, your tax is paid through a deduction taken directly from your turnover. In that case, there is no longer any allowance to apply.

Sole trader allowance rates

The sole trader allowance rate depends on your type of activity.

1. 34% allowance for liberal professions and non-commercial profits.

2. 50% allowance for service activities and industrial and commercial profits.

3. 71% allowance for the sale of goods and the provision of accommodation.

All calculations are performed directly by URSSAF — your only task is to enter the amount of your turnover. That said, to be sure you’re declaring the exact amount and stay compliant with the tax authorities, it’s well worth using professional accounting software such as Bizyness. The invoicing software simplifies the sole trader declaration and protects you from errors that could result in penalties or even a tax audit.

Penalties for missed deadlines

If you fail to file your declaration on time, a €52 penalty applies for each missing declaration. Note that this penalty applies even if your turnover is zero but you failed to report it.

Further surcharges apply if you don’t rectify the situation before the next deadline.

Your URSSAF declarations are made easier by invoicing with Bizyness

Invoicing software simplifies the sole trader declaration and guarantees the accuracy of your figures. Bizyness keeps your bookkeeping up to date, including the payment status of your invoices.

When your sole trader declaration deadline arrives, you export the relevant activity in just a few clicks, selecting only the invoices that have been paid. Any outstanding amounts will only be declared once they’re paid.

As soon as your sole proprietorship is set up, go to the URSSAF website to create your professional account. From there, you can access your personal space where upcoming deadlines are shown.

Simply follow the instructions, enter your type of activity — which determines your allowance — then input the figure calculated by Bizyness. You can pay instantly or wait until the end of the month to send your bank transfer.

With Bizyness, your bank account is synced to your bookkeeping. This means you always know whether you have the cash flow to cover your tax liability, or whether it’s better to wait before initiating the transfer. You can also choose to automate the payment of your contributions using a tool like Zapier, which is compatible with Bizyness.

Sole trader income tax declaration

The sole trader tax declaration depends on whether you’ve opted for the flat-rate income tax withholding (versement libératoire).

If you selected the flat-rate income tax withholding option

In this case, you pay your income tax monthly or quarterly. It is calculated as a percentage of your turnover, using the same method as your social contributions, paid directly to the social security bodies.

You must then declare your income using form no. 2042-C-PRO.

If you did not opt for the flat-rate income tax withholding

In this case, you are taxed under the micro-enterprise regime, either micro-BIC or micro-BNC, depending on the nature of your activity.

Your tax is calculated based on the declarations made through your URSSAF account throughout the year, after the allowance, and according to the progressive income tax scale. Regardless of the amount of your allowance, the tax authorities set a minimum allowance amount of €305.

The amount resulting from your turnover, minus the allowance, must be reported on your income tax return, on form no. 2042-C-PRO.

Bizyness automatically calculates the turnover you need to declare

As with your monthly or quarterly turnover declaration to URSSAF, Bizyness automatically calculates the amount you need to declare for the year.

The invoicing software simplifies the sole trader declaration and guarantees its accuracy. You run no risk of omission and only declare invoices that have been paid. All outstanding and unpaid invoices are automatically carried over to the following year’s declaration by the software.

With software like Bizyness, the sole trader declaration, as well as tax-related formalities, are quick to handle. You save time keeping your bookkeeping up to date and avoid the risk of errors that could expose you to an audit and potential penalties.