Personal services: the tax credit repaid immediately

Where an individual uses a personal service provider or a self-employed person, the expenses incurred in this regard are eligible for a 50% tax credit up to an annual limit (€12,000 per year, which in some cases may be increased to a maximum of €20,000).

Currently, the amount of this tax credit is paid to the individual by the government with more than one year of lag.

The Immediate Advance service, offered by the Urssaf and the General Directorate of Public Finance since June 14, 2022, allows the amount of the tax credit to be deducted from the amount owed to the personal services organization as and when payments are made.

Except in special cases, this tax credit is capped at €6,000 per year per tax household for expenses incurred in 2022. It is raised to €10,000 in case of disability. The fact sheet Income Tax - Home-based Employee Employment Tax Credit details this tax reduction.

How do I activate the Immediate Advance service?

The organization used (business, association, self-entrepreneur) must have activated their authorization with the URSSAF in order to be able to register the individual at his request for this immediate advance service.

The tax authority then verifies the individual's tax number and ensures that the individual has already filed at least one tax return. If these two conditions are met, an email will be sent to the individual inviting him to activate his online account on particular.urssaf.fr and to confirm his personal information if this person does not yet have an account or to accept the connection with the organization if he already has an account.

The individual will be able to benefit from the immediate advance for payment requests issued by the service provider to the person as of the activation of his online account.

How does the Immediate Advance service work?

Once the service is performed at the individual's home, the Ussaf sends a notification to the individual informing them that a payment request from the organization is available on their online account.

The amount of the remainder payable will be equal to the benefit amount, from which the amount of the tax credit is deducted. The individual has 48 hours to validate this payment request.

In case of disagreement with the transmitted elements, the individual can contest it. In this case, the individual will then have to deal directly with the personal services organization. Withdrawal of the remainder will be blocked.

Once the 48-hour period has passed and no action is taken by the individual, the application will be automatically validated. The Urssaf takes the amount from the individual's bank account 2 days after the validation of the payment request. The paying agency shall pay the intervener under the usual conditions.

The Urssaf pays the entire benefit to the provider organization within 4 days of the validation of the payment request.