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FINANCIALLY AESTHETIC · GUIDE 24/37
SIDE INCOME FROM ZERO: SERVICES, FREELANCING, RESELLING & ONLINE WORK
FA-5.2 · Income, Work & Making Money Young
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WHY THIS PAYS
The cleanest side income usually starts with a useful offer, not an expensive course or a fantasy brand.
Selling Personal Belongings: When Is It Taxable?
Clothing, home decor, or even appliances: you may sometimes sell your belongings at a flea market or through dedicated apps. Did you know that, in some cases, you’re required to report the income from the sale? You may also be liable for social security contributions and VAT once certain thresholds are met.
Income from the sale of personal items you no longer wish to use does not need to be reported to the tax authorities and is therefore not taxable.
However, there are two specific cases in which income from the sale must still be reported:
- if the items sold are precious metals, or, in the case of jewelry, works of art, collectibles, or antiques, if the sale price exceeds €5,000. In this case, you are subject to the flat-rate tax on precious metals and objects, and you must pay this tax within the month of the sale;
- If you sell property for more than €5,000 (excluding furniture, appliances, or automobiles, which are exempt). In this case, you are subject to the capital gains tax on the sale of personal property at a rate of 19%.
As specified by Urssaf, if you sell personal property and these sales are occasional in nature, you will not have to pay social security contributions.
When Resale Becomes a Business
If you purchase or manufacture goods for the purpose of (re)selling them - for example, if you buy and resell comic books, or sell jewelry or embroidered tablecloths that you have made yourself - the income from this activity is taxable.
You must first register the establishment of this business on the website formalites.entreprises.gouv.fr to list your business in the Sirene directory and obtain an identification number. You must report your business and your income to the tax authorities as part of your tax return.
If you purchase or manufacture goods for the purpose of (re)selling them, this self-employed activity is considered professional in nature, and you must pay social security contributions. There are two enrollment options: either under the micro-entrepreneur scheme, in which case you must report your income on the autoentrepreneur.urssaf.fr website; or as a self-employed worker, in which case you fall under the general scheme for self-employed workers.
Note: Do you offer your goods for sale through a collaborative online platform? If the number of transactions carried out in a year is 30 or more, or if the amounts received exceed €2,000, platform operators are required to report the relevant information to the tax authorities. Note that these are not thresholds that automatically trigger taxation of these amounts.
BIC or BNC: Which Category Does Your Activity Fall Under?
Once a resale, service, or freelance activity goes beyond the occasional scope, its income falls into a specific tax category. Industrial and commercial profits (BIC) and non-commercial profits (BNC) are both types of income subject to income tax.
Industrial and commercial profits (BIC) are profits earned by individuals engaged in a commercial, industrial, or craft-based activity. BIC specifically includes the following types of profits: profits from commercial, industrial, or craft-based professions, such as the sale of goods, items, or supplies; the sale of food for takeout or on-site consumption; etc.
Non-commercial profits (BNC), on the other hand, refer to a type of income applicable to individuals who engage in a non-commercial professional activity, either as a sole proprietor or as a partner. Taxation of BNC primarily applies to the following types of income: profits from the liberal professions; income from copyrights.
In practical terms, for a beginner: buying and reselling activities, as well as the provision of skilled trade or commercial services (hairdressers, plumbers, real estate agents), fall under BIC; the provision of non-commercial services and income such as copyright royalties fall under BNC.
The micro-BIC or micro-BNC regime entitles you to an automatic flat-rate deduction when calculating your tax: 71% of revenue for buying and reselling activities, 50% for service activities (BIC), and 34% for BNC, with a minimum deduction of €305.
(Details on revenue thresholds, actual tax regimes, and specific filing procedures are covered in the comprehensive tax guide for this status, discussed in FA-5.5.)
The Micro-Entrepreneur Status to Formalize a Business Activity
As soon as a service, tutoring, freelancing, or resale business becomes regular, it must be registered under a specific status. Micro-entrepreneur status (or auto-entrepreneur status) is a simplified tax and social security regime for sole proprietorships (EI). It allows you to operate under your own name.
To become a micro-entrepreneur, you must complete a number of steps.
Prepare Your Business Plan
Although the micro-entrepreneur status is simplified, it is important to thoroughly prepare your business plan. The first step is to develop a business model. This model helps you visualize, design, and adjust a company’s business model. It therefore describes the company’s business plan.
The second step is market research. This helps determine whether the proposed project is profitable or not, based on four factors: supply, demand, the business environment, and sales strategy.
Finally, there are many ways to promote your business: posting on social networks, leveraging your personal network, attending trade shows, or participating in networking events.
Check Whether the Business Is Regulated
It is important to check whether the proposed business is regulated. When an entrepreneur wishes to engage in a regulated profession (e.g., restaurant owner, real estate agent, hairdresser), they must ensure they meet the prerequisites for practicing that profession. This may involve, for example, obtaining a specific degree, applying for a permit from the city hall where the business will be operated, or applying for certification.
Registering the Micro-Business
Once all the preliminary steps have been completed, the micro-business must be registered with the government. This registration process is called “immatriculation.” The cost varies depending on the nature of the business:
- For a commercial business, registration with the RCS and the RNE is free
- For a craft or independent professional business, registration with the RNE is free
- For a commercial agent business, registration with the RNE is free, and registration with the RSAC - which is mandatory - costs €23.21
Thus, registration of a micro-enterprise is always free, with the exception of commercial agents. It must be completed on the Business Registration Portal website.
A number of documents must be submitted to the Business Formalities Portal:
- The micro-entrepreneur’s identification document
- Proof of the micro-enterprise’s business address with a clearly identifiable address (e.g., a water, electricity, or gas bill)
- A sworn statement of no criminal convictions and a certificate of parentage, both dated and signed by the entrepreneur
- If the entrepreneur is engaged in a regulated activity: a copy of the authorization to practice the activity, diploma, or professional certification
Gig Work via Online Platforms
Freelancing or gig work today largely takes place through digital platforms. The platform economy encompasses economic activities facilitated by digital platforms such as websites or mobile applications. Transactions typically involve three or more distinct parties: sellers of products or services; consumers who purchase these products or services; and platform operators who use technology to facilitate transactions between sellers and consumers.
The gig economy generally refers to services provided under short-term contracts, freelance work, or temporary work arranged through an online platform or mobile application. In the gig economy, on-demand workers are self-employed workers and freelancers.
Contract services can range from a microtask (a small task arranged via the Internet) to specialized services. They may include tasks such as the following:
- web development;
- business consulting services;
- maintenance and repair of residential or commercial properties;
- legal consulting services;
- graphic design services;
- moving services;
- writing and translation services.
Under the agreement, workers may perform the work from remote locations. Online platforms and apps can connect consumers and businesses with on-demand workers from anywhere in the world.
Platform Fees and Actual Spending
Working through a platform incurs costs that must be accounted for in order to distinguish income from actual profit. Here are examples of eligible expenses related to earned income in the gig economy:
- costs associated with using a platform to sell services;
- marketing costs to increase traffic to your website or online portfolio, if these costs are related to the earned income;
- costs of materials or services, whether internal or external, such as raw materials, software licenses, editing, or translation services.
To claim deductions, you must keep proper financial records: record your income and expenses, including sales made to buyers.
Beware of Fake Online Job Postings
Seeking side income online carries a specific risk: fake job postings. Some job offers posted on the Internet do not lead to actual hiring. They appear identical to genuine offers - often very attractive to candidates - and comply with legal labour law regulations (hours of work, compensation, etc.). These fake job postings are created by fraudsters who pose as legitimate recruiters by impersonating a company’s name, address, the identity of an employee or company executive, or its SIRET number.
Their goal is to extort money or steal personal information (bank details, social security number) for fraudulent purposes.
How to Protect Yourself
- Be wary of offers that seem too good to be true or out of the ordinary. Don’t hesitate to discuss them with friends and family or a job counselor (France Travail, etc.).
- Be wary of job postings that contain spelling mistakes or ask you to reply to a “public” email address. A large company will always send you a message from its own domain name.
- Never share your personal information (bank account details, social security number, account number, or bank card number) with a recruiter until you have met them in person.
- Do not pay any money to a potential employer, regardless of the reason given (a potential employment contract or pre-employment training) or the method of transfer (purchase of prepaid cards or vouchers, international express money transfer).
- Never purchase supplies on behalf of the company, and never accept a check or bank transfer to make purchases necessary for starting your new job.
- Do not accept any compensation from your future employer until you have signed the employment contract.
- Verify that the company making the job offer is a legally registered entity (SIRET).
- Be cautious if a recruiter contacts you at an unusual time or claims they cannot meet with you because they are abroad.
- Pay close attention to what the recruiter says, especially if, for example, during an interview, they offer you a position different from the one mentioned in the job posting.
- Do not continue the conversation if you have doubts about the other person’s honesty.
- Take the time to carefully read all documents provided to you, and never sign a document without knowing exactly what you are committing to.
- Never cash checks that are not from your employer. Even if the amount of a check deposited at your bank appears as a credit in your account, the bank - once it has completed its verification process (e.g., to check for stolen checks) - has several weeks to approve the transaction or reverse it by debiting your account for the same amount.
If You Are a Victim
1\. Immediately cut off all contact with the so-called recruiter, even if they become threatening via text or phone.
2\. Notify the organization to which you provided personal information: if you provided personal information (such as your social security number), notify the relevant organization (Social Security, France Travail, Health Insurance Fund).
3\. Notify your bank and regularly monitor your bank account activity: if you have provided banking information, notify your bank.
4\. Keep records, including phone numbers, messages you’ve received, or any other information that may help you report the scam to the authorities.
5\. Notify the organization whose identity was stolen and/or the job site that posted the ad, providing, if possible, all the information you have gathered to substantiate the job fraud.
6\. Report the incident to the Ministry of the Interior’s PHAROS reporting platform: internet-signalement.gouv.fr.
7\. File a complaint: Whether you are the victim of an attempted scam, personal data theft, or financial fraud, file a complaint at a police station or gendarmerie station, or by writing to the public prosecutor at the judicial court with jurisdiction over your area. Filing this complaint will assist you with future steps should your identity be stolen in an act of identity theft.
If you are an individual, you can receive free assistance with this process from a France Victimes association by calling 116 006 (toll-free call and service), the Ministry of Justice’s victim assistance hotline.
Tax Obligations: The General Principle
Whether income comes from a gig work platform, tutoring, or freelance work, a general principle applies: on-demand workers must report and pay taxes on all income from self-employment by filing their Income Tax and Benefit Return.
These obligations apply to all income, including income derived from business activities conducted outside the country of tax residence.
(Specific reporting requirements, tax rates, and thresholds are covered in Chapter FA-5.5 on taxation.)
YOUR NEXT MOVE
Choose one small offer, find a real buyer, track every cost and refuse any 'job' that makes you pay first.
CURRENT-RULES CHECK
Legal protections, tax rates, reporting duties, deadlines and product rules change by country and over time. Use the jurisdiction labels in this guide and check the linked official source before acting.
- IRS - Tax tips for gig-economy workers - United States - gig-work tax.
- GOV.UK - Business records if you're self-employed - United Kingdom - record keeping.
- FTC - Job scams - United States - employment scam warning signs.
