With rising gas prices, more and more French people are deciding 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 should income from carpooling be declared?
Carpooling is mainly organized through online applications (BlaBlaCar, Kombo, Mobicoop, etc.).
These online platforms are required to send, no later than January 31 of each year, a statement of the transactions carried out and the gross amount received in this regard, to each of their users and to the tax authorities.
Please note that they are not subject to this obligation if the user has made less than 3,000 receipts or less than 20 transactions in the year.
A person who carpools and transports passengers for income will not have to declare the income from this activity if the following three conditions are met:
- it is a trip carried out on his behalf;
- the price of the trip does not exceed the mileage scale and is divided by the number of travellers;
- he also pays a share of the price of fuel and the (possible) page caused by this journey.
In this case, the sums received have not been declared to the administration because it is a simple cost sharing.
On the other hand, if one of these three conditions is not met, this carpooling activity is considered a non-salaried professional activity. Income must be declared to the tax authorities and activity must also be declared on the site formalites.entreprises.gouv.fr (which in 2022 will gradually replace the site Guichet-Entreprises.fr).
How do I declare carpooling income to the tax authorities?
Carpooling income from a professional activity is taxable. They must therefore be declared to the tax authorities. The taxpayer then has two options for declaring his taxable income depending on the amount of his revenue.
If revenue is less than 72,600:
The taxpayer is subject to the micro BIC (micro-enterprise) regime. It makes it possible to deduct from the receipts a fixed abatement of 50%. Expenses cannot be deducted. To make the declaration, the taxpayer must complete form n2042 C pro (line 5NP) when declaring income tax (IR). If the receipts are less than 305, he will not pay tax. If he has opted for the flat-rate withholding tax, he must enter his receipts on line 5TB of form n2042 C pro.
If the receipts are greater than 72,600:
The taxpayer is automatically subject to the real regime (the regime best suited to professional activities). He then declares the exact amount of all his charges. He must complete the professional declaration n2031-SD. He must also declare and pay VAT, for this he must use form n3517-S-SD.
Taxpayers subject to the micro BIC regime can opt for the real regime.
If the taxpayer decides to make his declaration online, a message will be presented to him as part of his declaration process to accompany him.
How to pay social contributions?
People who carry out a professional activity are required to pay social contributions in order to open their rights to social benefits. Depending on the amount of their income, they have two options for declaring their social security contributions.
If revenue is less than 72,600 in 2021:
The taxpayer chooses the micro-entrepreneur scheme (to join: autoentrepreneur.urssaf.fr). The amount of social contributions to be paid will then be proportional to revenue without deduction of charges, with an overall contribution rate of 22%.
The taxpayer can opt for the status of self-employed worker and be covered by the Social Security for the Self-Employed (to join: formalites.entreprises.gouv.fr). He must declare his profits on the net-entreprises.fr website. His contributions will then be calculated by the Social Security for the Self-Employed on the basis of his real profit.
If revenue is greater than 72,600 in 2021:
In this case, the taxpayer comes under the social security of the self-employed. He must then register on formalites.entreprises.gouv.fr and declare his profits on the net-entreprises.fr site.