Display Hide the table of contents
Yes, home help is eligible for a tax credit
The service in question corresponds to an ordinary personal service. Which means that you can benefit from a tax credit equivalent to 50% of the expenses incurred. In the limit of 12,000 euros per yearas stated on public treasury website. In addition, according to Olivier Bertaux, tax lawyer for the Contribuables Associés association, this tax credit can be applied instantly by being automatically deducted from the amounts to be paid to your employee. However, it is important to note that this deduction is not automatic. In fact, it requires an express request via the website of the Cesu and his service ” immediate advance« .
The public service website explains that people aged over 70 can benefit from an exemption from employer social security contributions. It means you pay fewer charges and therefore the cost of the service will be reduced. Jean-Christophe Goux of the Federation of Individual Employers of France can help you in your efforts. And this by providing additional information via its dedicated website.
However, it is important to make the distinction. Home meal preparation and home meal delivery is not the same thing. Only the first option is eligible for tax benefits, unlike meal delivery which is not.
What is a tax credit?
A tax credit is a tax measure which allows a taxpayer to deduct a certain amount of money from your taxes payable. Unlike a tax deduction which reduces taxable incomethe tax credit corresponds to an amount deducted directly from the amount of tax the taxpayer must pay. The tax credit may be refundable or non-refundable, depending on the tax rules in force in the country concerned. The purpose of the tax credit is often toencourage certain spending or behaviors. Such as employing home staff, using renewable energy or donating to charities.
Most French people who seek to benefit from a tax credit do so by resorting to home services. Such as the babysittingl’housekeeperthe gardeningTHE small DIY jobs, etc.. Indeed, these services are eligible for a tax credit under certain conditions. Especially in using licensed contractors or freelancers. Taxpayers may also benefit from a tax credit for expenses related toinstallation of energy efficient equipment or renewable energy generation equipment in their principal residence. However, to be eligible, these expenses must meet specific criteria. Such as the technical characteristics of the equipment, the certifications and labels required, etc.
Numbers
According to a survey by the DREES (Department of Research, Studies, Evaluation and Statistics), in 2015, approximately 2.3 million people aged 60 or over received home help in France. Which represents regarding 1 in 5 people in this age group. Moreover, approximately 800,000 people benefited from home help in other age categories.
Source : TF1 Info
