Entrepreneurs and Co : Internet, European and International Business Development Consultant for Entrepreneurs and Small Businesses - http://www.entrepreneurs-and-co.com
Tax Shake-Up to Boost Employment in France
http://www.entrepreneurs-and-co.com/articles/10/1/Tax-Shake-Up-to-Boost-Employment-in-France/Page1.html
Didier Delmer

"Who are we ?"

Company Profile :


Entrepreneurs and CO Ltd

145-157 St John Street - London EC1V 4PY

Chartered Accountants & Business Advisers, at Entrepreneurs & Co (ENC), we appreciate the value of working together as a team.

Because the flow of ideas is encouraged at ENC and everyone feels free to express their opinion with regard to work related matters it has by the very nature of being, created a dynamic work environment. As a team we all recognise our responsibility in making Entrepreneurs and Co what it is.

The reputation of the whole firm is in the hands of each individual and we are proud of being part of such a strong team. Together we encourage and motivate each other in a dynamic environment so that as a team we can provide innovative and profitable solutions for individuals and businesses.


Services

Every client is unique and deserves a unique service. Our philosophy is to put our clients first - to understand their situation and provide a first class service tailored to their specific needs.

Because we establish a one-to-one relationship with each client we are able to offer timely, individual advice on how to improve your business or personal finances.

As leading edge accountants we have developed the traditional bookkeeping, auditing, and accounting services into innovative client-focused services that provide not only all the reliable background support you would expect from a professional firm but also forward-thinking advice on how to improve your situation.

We have also developed a new range of accounting services to meet the needs of modern businesses, including a comprehensive business advisory service. Whether you need help with growing your business or advice on optimising your personal or family finances, we are here to help you get the best results.

 
By Didier Delmer
Published on 10/07/2007
 

On the 20th June, Minister for the Economy, Finance and Employment Christine Lagarde presented to the Cabinet a bill outlining the series of tax-cuts announced by the Government.

One of the aims of the bill is to restore purchasing power to the French by boosting employment. 

These measures will affect the entire French population in the short term.


Boosting the French economy

Overtime hours :

From the 1st October 2007 overtime hours worked by all private sector employees, including managers and part-time workers, will be exempt from tax; this will also apply in the public sector, in a revised format. Overtime hours will attract a 25% pay increase on the normal rate, regardless of the size of the business. Employees will not be liable for tax or national insurance contributions on these earnings; businesses will benefit from reduced employer contributions.

Inheritance tax :

95% of households will be exempt from paying inheritance tax. The tax-free allowance on gifts and inheritance per child will increase from 50,000 to 150,000 euros. Finally inheritance tax will be abolished for surviving spouses or civil partners.

Tax-deductible mortgage interest payments :

Tax credits to help towards the purchase of a principal residence will be calculated at 20% of mortgage interest up to an annual interest rate capped at 3,750 euros for a single person and 7,500 euros for a childless couple. This measure applies during the first five years of the loan.

Tax-cuts to benefit the young :

Under-26s who work while studying will be exempt from income tax for earnings up to three times the minimum monthly wage. Gifts to a child, grandchild or great-grandchild will also be tax-free up to a maximum of 20,000 euros per beneficiary.

Tax burden : 

This will be reduced from 60% to 50% (NI contributions included) from January 2008 for tax paid in 2007 on income earnt in 2006.

Capital gains tax :

Households may deduct from their capital gains tax 75% of sums invested in SMBs and in public interest entities, up to a maximum of 50,000 euros per year. This measure could prove particularly beneficial to public research establishments.

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