Questions That Should NOT Leave You Sleepless
Law and Tax ChangesGood practices
If you are self-employed or if you have a project in mind that you are about to launch, certain issues probably keep you awake. When to start billing? What expenses are deductible? What is a “trade”? In this article, we want to give a brushstroke to the most common of them.
- How much will I pay for Social Security payments?
- When can I start issuing invoices?
- Can I register as a freelancer and continue working for another company?
- Capitalization of unemployment VS Making unemployment compatible
- Can I designate a space in my home as a workplace?
- What expenses are deductible?
- What is a “trade”?
- Is there a deadline to issue an invoice?
- Can I hire a close relative?
- Am I entitled to maternity leave?
- Can I charge if I’m sick?
- When could I retire?
- Related articles
How much will I pay for Social Security payments?
For a minimum contribution base of € 944.35, the payment is € 283.30. These amounts vary slightly every year, as they are set based on the quote table approved by the State.
For the new self-employed workers, there is a flat rate of € 60, which involves the payment of 25% for the first 6 months, the subsequent 6 months 50%, and the next 6 months 75%.
The mentioned contribution base can be changed to guarantee a higher retirement for the future. You have to take into account the deadlines and age limits.
When can I start issuing invoices?
You must start billing after registering in the Tax Agency and Social Security. There are specific cases in which it is not necessary, but they are exceptions.
Can I register as a freelancer and continue working for another company?
The answer is yes, you can. In this case, you will be trading in two different regimes, and it is completely compatible.
Capitalization of unemployment VS Making unemployment compatible
Both are feasible but incompatible with each other:
– Capitalization: consists of collecting in advance the unemployment that you have left to collect, as long as you have at least 3 months to collect.
– Compatibility: suppose that the first 9 months you continue to collect your unemployment benefit.
Can I designate a space in my home as a workplace?
Yes, you must inform about it in form 036 or 037 of registration in the Treasury. You should specify the square meters that you will allocate to it.
In case of rent, you will not be able to deduct the part proportional to the rent. In case of paying a mortgage, yes, but only the interests, not the capital.
What expenses are deductible?
According to the law “those expenses necessary for the development of the activity are deductible”. However, when listing a few, the tag “other expenses” is added, which lends itself to the free interpretation of the taxpayer if they are deductible or not and in what amount.
Always use common sense and make it justifiable upon inspection. Check out our article on deducible expenses.
What is a “trade”?
A dependent self-employed worker that is a freelancer who works on his account, but his income comes 75% or more from the same company. Recognition that has allowed the self-employed rights to be assimilated similar to those employed by others, such as compensation, vacations, etc.
Is there a deadline to issue an invoice?
According to the Law, you can deliver an invoice within 15 days of the month following the delivery of the work.
Can I hire a close relative?
Indeed, but depending on who in one regime or another—to your wife or husband only as a self-employed collaborator, never employed in the general scheme. In the case of a child, depending on the age and with whom he lives, it will be one regime or another.
Am I entitled to maternity leave?
Yes, you are. Like mothers employed by others, you are entitled to 16 weeks of maternity leave.
Can I charge if I’m sick?
Yes, you can, since it is covered as in the general scheme, except that it is the self-employed person who must process the withdrawal, either with the mutual or with the INSS.
Temporary disability begins to be effective as of the fourth day of illness, in which 60% of the contribution base is charged, until the 20th day. 75% is charged from the twenty-first day.
When could I retire?
In no case can a self-employed person retire before reaching 60 years of age, except for disability. After this age, it can be withdrawn voluntarily or not voluntarily. For example, as of 2027, only the self-employed who have contributed for 38 years and 6 months will be able to retire at 65.
As you can see, we have given some small brushstrokes and clarified concepts. If you consult the search engine of our blog, some of these topics are analyzed in great depth. The best thing to avoid that doubts invade you is to consolidate concepts little by little.