Personal services: the tax credit repaid immediately

When you use a personal service provider or a self-employed entrepreneur, you receive a tax credit of 50% of the expenses incurred in the year, up to a limit that depends on your situation.

Aid received to finance the employment of the employee at home must be deducted from expenditure (personalized stand-alone allowance (Apa), free choice of custody complement (CMG) or financial assistance from the employer).

The ceiling for expenditure incurred in the year is €12,000 per year, it can be increased to a maximum of €20,000 in certain cases.

Except in certain special cases, this tax credit of 50% of the expenses incurred is therefore capped at €6,000 per year per tax household for expenses incurred in 2022. It is raised to €10,000 in case of disability. You can look at the fact sheet Income Tax - Home-based Employee Employment Tax Credit.

Until then, the amount of this tax credit was paid to you by the government with more than a year's lag. The Immediate Advance service, offered by the Urssaf and the General Directorate of Public Finance since June 14, 2022, allows you to deduct the amount of your tax credit from the amount owed to your personal service organization as you make your payments.

How do I activate the Immediate Advance service?

The organization you use (business, association, self-entrepreneur) must have activated their authorization with the URSSAF to register for this Immediate Advance Service, upon your request.

The tax authority then checks your tax number and makes sure you have already filed at least one tax return. If both of these conditions are met, you will receive an email inviting you to activate your online account at idiom.urssaf.fr and to confirm your personal information if you do not already have an account or to accept the connection with the organization if you already have an account.

You will be able to benefit from the immediate advance for payment requests issued by your personal service provider as of the activation of your online account.

How does the Immediate Advance service work?

Once the service has been performed at your home, the Urssaf will send you a notification informing you that a payment request from your organization is available on your online account.

The amount of your outstanding balance will be equal to the amount of the benefit, minus the amount of your tax credit. You have 48 hours to validate this payment request.

If you disagree with what is being transmitted, you can challenge it. You will then have to deal directly with your personal care organization. The withdrawal of your remaining payment will be blocked.

Once the 48-hour deadline has passed and no action is taken on your part, the request will be automatically validated. The Urssaf charges the amount to your bank account 2 days after the validation of the payment request. Your provider pays the worker under the usual conditions.

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