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Status, social charges and VAT: what the job really takes

Three administrative decisions weigh more on your income than ten declined rides. Here they are, with the 2026 figures in force.

4 questionsUpdated on August 17, 20263 min read

In this guide — 4 questions

01 / 04

Which status should a private-hire driver start with?

The micro-enterprise to start: fast registration, minimal bookkeeping, contributions proportional to what you collect. A company (EURL, SASU) becomes relevant once your real costs are heavy — vehicle, fuel, leasing — because the micro regime deducts none of them. The right status depends on your cost structure, not on any absolute ranking.

As of 17 August 2026, the micro-enterprise ceiling for service activities is €83,600 of annual revenue — raised from €77,700 by the 2026-2028 triennial revaluation (source: Urssaf). One year above the ceiling keeps you in the regime; two consecutive years push you out on the following 1 January.

A company costs more to run — accountant, annual filings — but it deducts real costs and opens VAT recovery. The switch is something you calculate, not guess: the break-even point depends on the weight of your costs in your revenue, and that is exactly the figure the cost-per-kilometre guide gives you.

02 / 04

How much does a driver pay in social contributions under the micro regime?

21.2% of collected revenue, at the 2026 rate for commercial service activities (source: Urssaf, verified 17 August 2026). The point many discover too late: contributions are computed on revenue, not on profit. Collect €4,000 in a month and €848 goes out in contributions — whether your margin was healthy or nil.

That rate covers health and maternity, basic and supplementary pension, disability-death cover and CSG-CRDS. A professional-training contribution of a few tenths of a point comes on top.

No real cost is deductible in exchange: fuel, insurance and the vehicle are deemed covered by a 50% flat allowance — applied to income tax, not to contributions. A driver whose real costs clearly exceed that allowance pays more for the regime than it appears.

The arithmetic to remember: out of every €100 collected, €21.20 leaves before you have bought a litre of fuel. That is the structural gap between revenue and income — the one the cost-per-kilometre guide measures.

03 / 04

Does a private-hire driver charge VAT?

Not below €37,500 of annual revenue: the French exemption (franchise en base) lets you invoice without VAT — and prevents you from reclaiming it on your purchases. Above €41,250, or after two years between the two thresholds, VAT becomes due (2026 service thresholds, verified 17 August 2026). A full-time driver crosses these amounts quickly.

The single €25,000 threshold voted in 2025 was suspended, then abandoned: the historical thresholds remain in force. The topic keeps returning in every finance bill, though — re-check yearly (state as of 17 August 2026).

Leaving the exemption is not only a constraint: you charge VAT on your rides, but you reclaim it on fuel, maintenance and the vehicle. For a driver with heavy costs, crossing into VAT can be neutral or even favourable — one more calculation to run with your own numbers, not a general rule.

04 / 04

Micro-enterprise or company: when to switch?

When your real costs durably exceed the 50% flat allowance the micro regime grants. Past that point, actual-cost accounting or a company deducts more than the micro regime simplifies. The concrete signals: an expensive lease, heavy mileage, high fuel spend, or approaching the €83,600 ceiling. Prepare the switch with an accountant at year end.

The classic mistake is choosing a status once and for all. A driver's costs evolve — a replaced vehicle, growing mileage, a move to electric — and the optimal status evolves with them. Rerunning the numbers once a year is enough.

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