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Tax credit, a step towards human services

The tax credit, expanded support for human services? These cover a wide range of activities to support people who are dependent on a daily basis. The wearing of meals at home, hygiene care, home cleaning… But also the accompaniment during various trips. A valuable help for the elderly or disabled. With the pandemic, the issue of isolation was at the heart of the Government’s concerns. But also the one that relates to the tax credit for personal services. A tax credit that supports people with disabilities.

A tax credit extended in 2021 by the Government

The Government has announced that the tax credit remains eligible for expenses incurred in personal services, partly made outside the home. Subject to being included in a global offer of services. Thus, the support in everyday travel is taken into account in the expenditure of expenses… But also the care of children’s journeys between home and school, as well as during extracurricular activities.

In this way, the Government maintains a 50% tax credit on expenses related to personal services. This, in the annual limit of 12,000 euros. This amount can be increased to 20,000 euros in case of disability. This encourages families’ demand for personal services. With the pandemic, the activity of human service organizations decreases, and the tax credit granted is intended to encourage their resumption.

Thus, the tax return of income for the year 2020 will be carried out in the same way as for previous years. The Government will also propose to Parliament, if necessary, a further adjustment to the existing texts. This will strengthen the legal security of taxpayers. This development is the result of a decision to annul the Council of State on 30 November 2020.

Human services allow people to accompany people with a loss of autonomy in all the day-to-daytasks of their daily lives. A situation that concerns the elderly,people with disabilities… But also people who are recovering from an accident, for example. The intervention of these organizations aims to support these different profiles, in order to give them a life in autonomy. A life at home, far from the adapted establishments, which attracts more and more people.

A major tax credit that boosts the activity of human services

The announcement of a personal assistance tax credit is good news for households applying for it. With the pandemic, the daily lives of all French people change. An even more noticeable change for addicts. In 2019, there were 42,187 human services organizations in France, representing more than 1.3 million professionals. Professionals who visit the homes of dependents on a daily basis, to offer them household, cooking, or accompaniment services in their daily lives, among others. The personal service covers a wide range of activities, with 26 different activities.

The average turnover achieved by the human service sector in France is significant: more than 18 billion euros per year. This is a working sector, driven by significant demand. It is estimated that more than 6 million French households could request the services of such organizations. This is for both one-off and recurring needs. Indeed, in the face of an ageing population, this market share does not seem ready to decrease. Especially since more and more seniors and people with disabilities want daily autonomy.

Thus, human services are among the sectors that support the French economy. They account for 1.1% of GDP in 2019. Data that demonstrates the potential of this sector, destined to grow further. Home help remains one of the most important activities of personal service, accounting for 63% of this market.

A sector weakened by the pandemic despite potential

Nevertheless, the sector experienced a difficult period in March 2020, during the first national containment. Strict containment, linked to the COVID-19 pandemic. 4 out of 5 organizations have stopped their activity, or have experienced a significant decrease in their interventions.

As a result, 48% of organizations have reduced their number of interventions, and 33% have stopped all interventions. Demand of families, faced with the fragility of their dependent loved one, or inability to provide services… The current period is challenging for the human service sector as well as for requesting households.

The maintenance of the tax credit therefore comes at the right time, to support and encourage the recovery of a sector that is as promising as it is essential to the well-being of dependent people… In search of autonomy.

Sources:

  1. The Human Services Tax Credit will continue to be able to cover out-of-home activities, Press release published on 15 February 2021, State Secretariat for Persons with Disabilities
  2. Personal service market
  3. Human Services: A dynamic market that brings together a plurality of activities | Blog of the Human Services and Home Employment Show
  4. Personal Service Market 2019 and 2020: Key Figures, Growth Issues,Appvizer, December 9, 2020
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