Every year, millions of French people take the plunge and hire a cleaning man or woman. This housekeeper can indeed prove valuable in a daily life where managing household chores becomes a burden. Whether you are facing a situation of total or partial loss of autonomy or whether you are suffering from mental burden, this solution allows you to partially or completely relieve yourself of domestic tasks that you can no longer carry out. And whether you hire this home help for yourself or a retired parent who needs help, this type of personal service entitles you to a tax reduction. But how does hiring work and how do you declare housekeeping expenses? We tell you everything about your tax advantage!
Hiring a cleaning lady, how does it work?
Either you decide to do the recruitment yourself, or you go through a third party. If you take care of it yourself, you should know that you will have to manage everything from announcements to interviews to the employment contract and management of the URSSAF file (social charges, files, etc.). Here, word of mouth will be a real advantage in finding someone serious. In short, there is no need to tell you that you will need to revise the Labor Code in advance. However, this admittedly time-consuming option remains the one that will cost you the least.
Otherwise, you can go through an agent company to help you with your research and administrative procedures, or even a service provider who will send an employee directly to you. This is the solution that will avoid managing too many formalities and paperwork. In addition, you can easily find the agency closest to you by searching on the internet. However, take the time to check the contract of the principal and compare the price of services.
What are the tax advantages of hiring a housekeeper?
Since 2018, you have benefited from a 50% tax advantage of what you paid. For example, for actual expenses of 200 euros per month for the employment of an employee at home, you will benefit from a systematic tax credit of 100 euros. Whether you are a tenant or an owner and whether it is in your main or secondary residence located in France, you can absolutely enjoy it. In addition, this will also concern those who have incurred expenses for the residence of a parent or grandparent who meets the conditions to receive APA.
Note that you can benefit from these benefits for other services defined in article D7231-1 of the Labor Code. This includes:
- Gardening, small DIY or babysitting work
- Childcare and academic support
- Assistance to the elderly or disabled
- Home delivery of groceries and meal preparation and delivery
- IT, internet and administrative assistance services
- And the care and walking of pets of dependent people (excluding veterinarian and grooming).
How to complete your income tax return?
First of all, know that this tax exemption will only cover the amounts you pay. In fact, if you receive financial assistance from your employer or the CAF (PAJE, APA, etc.), you will have to deduct the amount of this aid of the calculation of the declared amount. For example, if you paid €4000, but received an allowance of €1500, you will only be able to declare €2500. In short, only the amounts paid out of your pocket are taken into account.
If you file your declaration online, check the “tax reductions and credits” box at step #3 . This will give you access to la case 7DB. In the past, you had to fill in box 7DB (50% tax credit for active workers) and 7DF (50% tax reduction for retirees). Today, only 7DB is there. To complete it, enter the full amount paid. The tax authorities will then be responsible for calculating the 50% tax advantage.
Good to know:
Whether you use the services of an employee, an association, a company or a declared or non-profit organization, always keep all payment receipts for your expenses. This may include proof of payment of invoices or certificates from URSSAF. Indeed, the tax administration can request it. So, even if you cannot attach them to your declaration, keep these documents carefully in case of request. In addition, know that LREM deputies want to reform this tax advantage for certain households. So maybe this is the perfect time to take advantage of it… while it’s still possible!
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