Friday, 14 January, 2022

Tax credit: Bercy wants to reassure individual employers


A decision of the Council of State, excluding certain services from the scope of home employment, worries households. The Minister of Public Accounts, Olivier Dussopt, should make announcements this Thursday to reassure individual employers about the tax credit they have.

Child care at home gives the right to a tax credit equal to 50% of expenses.

Pure legal formalism and nothing else. This is in a way the message that Bercy intends to convey about the recent decision of the Council of State on the tax credit for home employment. According to our information, Olivier Dussopt, the Minister for Public Accounts, should make announcements this Thursday to reassure individual employers who feared that their tax advantage would be cut.

In a judgment of November 30, the highest administrative court excluded from the scope of home employment ancillary services that are performed outside the home. For example, accompanying children between school and home or transporting an elderly person to their home. These services, which were usually included in a global offer, should no longer be counted as expenses giving rise to a 50% tax credit. This interpretation of the Council of State, which canceled that of the administration, announced a puzzle during the next tax return.

Employment under pressure

“We immediately informed the Ministry of the Economy and Public Accounts”, says Mehdi Tibourtine, legal director of the Federation of Individual Services (FESP), which represents companies such as Acadomia, Completude, Shiva etc. ” This could pose serious problems for the activities consumed in 2020 and 2021 ”, he underlines. The FESP, which will welcome Olivier Dussopt this Thursday during a seminar, awaits clarifications to calm the concerns of the sector.

The subject is all the more hot as the health crisis puts pressure on this form of employment, in particular during periods of confinement. The number of hours reported fell last year, as families relied less, in particular, on childcare at home.

At the ministry, we confirm that we are looking at the subject with the greatest attention and working on a solution for individual employers. “Our goal is not to complicate the procedures”, says one at Bercy, where one underlines that the project of simplification is more topical than ever, with the objective of leading to the payment in real time of the tax credit in 2022.

Read also:

Taxes: the biggest litigation at the ISF suspended from the verdict of the Court of Cassation

In this perspective, experiments are already underway in Paris and in the North. Since the introduction of the withholding tax, the State pays 60% of the tax credit in January, and the balance in the summer. The reform would lead to the employer only disbursing the net to be paid. She “Would thus relieve household cash flow”, as Olivier Dussopt recalled in September.

Thursday, the intervention of the Minister will be very followed. More than 4 million households benefit from the tax credit for salaried employment at home. This is the main tax niche for households. In 2020, its cost amounted to 5 billion euros for the State.

A decision of the Council of State, excluding certain services from the scope of home employment, worries households. The Minister of Public Accounts, Olivier Dussopt, should make announcements this Thursday to reassure individual employers about the tax credit they have.

Child care at home gives the right to a tax credit equal to 50% of expenses.

Pure legal formalism and nothing else. This is in a way the message that Bercy intends to convey about the recent decision of the Council of State on the tax credit for home employment. According to our information, Olivier Dussopt, the Minister for Public Accounts, should make announcements this Thursday to reassure individual employers who feared that their tax advantage would be cut.

In a judgment of November 30, the highest administrative court excluded from the scope of home employment ancillary services that are performed outside the home. For example, accompanying children between school and home or transporting an elderly person to their home. These services, which were usually included in a global offer, should no longer be counted as expenses giving rise to a 50% tax credit. This interpretation of the Council of State, which canceled that of the administration, announced a puzzle during the next tax return.

Employment under pressure

“We immediately informed the Ministry of the Economy and Public Accounts”, says Mehdi Tibourtine, legal director of the Federation of Individual Services (FESP), which represents companies such as Acadomia, Completude, Shiva etc. ” This could pose serious problems for the activities consumed in 2020 and 2021 ”, he underlines. The FESP, which will welcome Olivier Dussopt this Thursday during a seminar, awaits clarifications to calm the concerns of the sector.

The subject is all the more hot as the health crisis puts pressure on this form of employment, in particular during periods of confinement. The number of hours reported fell last year, as families relied less, in particular, on childcare at home.

At the ministry, we confirm that we are looking at the subject with the greatest attention and working on a solution for individual employers. “Our goal is not to complicate the procedures”, says one at Bercy, where one underlines that the project of simplification is more topical than ever, with the objective of leading to the payment in real time of the tax credit in 2022.

Read also:

Taxes: the biggest litigation at the ISF suspended from the verdict of the Court of Cassation

In this perspective, experiments are already underway in Paris and in the North. Since the introduction of the withholding tax, the State pays 60% of the tax credit in January, and the balance in the summer. The reform would lead to the employer only disbursing the net to be paid. She “Would thus relieve household cash flow”, as Olivier Dussopt recalled in September.

Thursday, the intervention of the Minister will be very followed. More than 4 million households benefit from the tax credit for salaried employment at home. This is the main tax niche for households. In 2020, its cost amounted to 5 billion euros for the State.