We explain how to record a rent or a retrocession in BILLY 🤓
Rent 🧱
This is a payment for the use of a professional space. The rent amount is fixed in advance.
👉🏻 For example, a doctor rents a practice room in a medical centre. They pay a fixed amount of €50 per half-day of use.
How to categorise a rent?
If it is money going out paid by the professional, the category is Rent paid (in the Expenses column).
If it is money coming in received by the professional, the category is Rent received (in the Income column).
Retrocessions 👩⚕️
A retrocession is a type of payment made by a healthcare professional to a colleague or a structure. In return for this fee, the professional benefits from a range of turnkey services: premises, equipment, secretariat, reception, patient base…
👉🏻 Example 1: a physiotherapist works in a hospital. The hospital manages the building, the secretariat, the patient base, payments, etc. The hospital pays back 65% of the income received to the professional. This is referred to as a 35% retrocession.
👉🏻 Example 2: a dentist works in a dental practice. They collect payments directly from their patients. They pay a 40% retrocession to the practice for the services provided.
There is therefore a contract between the two professionals which sets out, among other things, the retrocession percentage. This percentage is variable and depends on the services provided. It often ranges between 25 and 50%.
👉🏻 For example, a surgeon or a radiologist requires far more expensive equipment than a nurse.
How to categorise a retrocession?
If it is money going out paid by the professional, the category is Retrocession paid (in the Expenses column).
If it is money coming in received by the professional, the category is a Service (in the Income column).
💡 Retrocessions paid = an expense that reduces your net income, which is reported under code 1650 of your tax return.
💡 Retrocessions received = income that increases your turnover. This increases code 1650 of your tax return.
Summary of differences between rent and retrocessions
| Rent | Retrocession |
Amount | Fixed | Variable (percentage of income) |
Nature of the relationship | Lease agreement (rental) | Service agreement |
Services included | Generally none | Often several services included |
Independence | Full | Partial, with shared services |
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