What does a legal and tax guide for freelancers paint in ? Well, because we recently published a in the field of digitization. In principle, it is a novel line, both because of its powerful financial endowment and because any company or self-employed person can access it provided, alas, that it complies with all legal requirements.
No, don’t worry, deciding whether you comply with the legal and fiscal obligations of the self-employed does not fall in the hands of the jury of the benidorm fest, who at the time of this writing must be the most hated people in the country. And there is no reason, they have simply limited themselves to doing what their bosses have ordered them to do. And where there is a boss, neither sailor, jury nor televote commands. Yes indeed, Tanxugueiras forever, and we do have to thank the festival in question.
Let’s see, I’m scattered. I said that it is relevant to publish a brief legal and tax guide for the self-employed because precisely the Digital Kit requires compliance with a series of legal and fiscal obligations of the self-employed (which must be fulfilled anyway) and we know that the self-employed who follow us are legion. It is what you have to cook it and eat it yourself, something that the writer also has to do.
Index:
Legal and fiscal obligations of the self-employed: the 10 things you have to do to have everything in order
First of all, let you know that legally There are 3 types of freelancers:
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- Corporate self-employed: The people who manage a company cannot be employees of the same, so they have the status of self-employed companies.
- Economically dependent self-employed workers (TRADE): A special type of self-employed whose billing for a single client exceeds 75% of the total. Although they are self-employed, they depend financially on that client and have certain special rights, since although they are self-employed they are also workers who depend on a third party.
- Self-employed to dry: Men/women orchestra that we have to do everything alone. That is, we are self-employed.
Today we are going to focus on the overwhelming majority case, which is that of the self-employed to dry, probably the group of workers most mistreated and with the fewest rights in this blessed country.
The self-employed live without living in us, it gives the impression that we are in a legal and fiscal limbo that nobody knows very well how to resolve, since for tax purposes we are considered “small companies” but for labor purposes we are a zero to the left since we lack any legal weapon to negotiate with our payers.
We do not have the right to vacations, nor work schedules, collecting “unemployment” is more difficult than climbing Everest in pajamas, slippers and with your mother-in-law in tow, the first two months of sick leave we pay the same contributions and we pay in personal income tax for what we pay double (at least) what a company pays in Corporation Tax. That is, in terms of legal and fiscal obligations of the self-employed, we have the bad things of both worlds and none of the good. But for many of us, due to our age or personal circumstances, we are considered “old” to work in a company (especially in the marketing sector, where if you are over 40 you already hear giggles behind your back) and we have no choice but to be autonomous.
That yes, the next time you listen “How cool is that of not having a boss and working from home when you feel like it” I swear I take the flamethrower and Nero next to me is going to be a mindundi.
But we are here to talk about the legal and fiscal obligations of the self-employed, so let’s get to it.
1. Register in the Tax Agency’s Economic Activities census
. Here are some things to keep in mind:
a) Business or professional activity?
In principle, If what you sell are services that you provide, you must register as a professional.
That implies that All your invoices must include a withholding of 15% for personal income tax that the payer must enter in the Treasury and that you will then deduct as payments on account in your annual Income statement. This serves so that when the time comes to declare do not give you a jamacuco when you see the amount you have to pay, and even so that you can have the joy of getting your money back if the withholdings throughout the year exceed what you had to pay, which is not uncommon if your billing is not very high.
If what you sell are tangible things, then your activity will have to be business, your invoices will not have this withholding and when you have to make the personal income tax return it will hurt more than a kidney stone attack. In that case, my advice is that save for personal income tax at least 15% of what you earn.
b) Define the type of activity (IEE heading)
You have to search among the epigraphs that there is the one that best suits the activity you carry out. The normal thing is that you do not find an epigraph that reflects it 100% and you have to choose the one that comes closest. If there is none, then you have the catch-all of 899: “other services for companies”.
Be careful here, because if you carry out activities that are different from each other, you will have to register in an epigraph for each activity. .
c) Local or place affected by the activity
If you have a place where you work, then all the expenses of that place will be expenses of your activity. But if you work at home, it is very important that you specify it and that you define what percentage of the surface of your house is dedicated to activity.
For example, if you use an office that represents 25% of the surface, then that is the % that you have to put. This is essential so that later you can deduct part of your home expenses (electricity, water, gas, internet, insurance, etc.). Be careful, of the total square meters that you occupy to work, you can only count 30% as an expense. That is, if your home office occupies 25%, what you can count as a deductible expense is 30% of that 25%, that is, 7.5% of the total expenses for supplies, rent, mortgages, etc. .
This is a fundamental aspect of the legal and fiscal obligations of the self-employed who work at home that is often overlooked and causes a lot of trouble.
d) Registration in the Registry of Intracommunity Operators (ROI)
This is essential so that you can deduct the costs of purchases or services that you make in companies in other EU countries. with that high you will be assigned an EU VAT number (which will be your NIF with ES in front, for example ES12345678K) that you will have to communicate to the companies from which you buy products or services outside of Spain but within the EU.
If you do not comply with this procedure, you will NOT be able to count as a deductible expense the invoices issued to you for purchases in online stores in other countries or for services from, for example, Adobe, Facebook or Google, which invoice from Ireland. Registration is done on the same activity registration/deregistration/modification form (model 036/037).
2. Sign up for Social Security
It is a simple procedure that you can do online in the but that has its own. You must, while waiting for it to be implanted, glupsthe new legislation on contributions, choose the contribution base on which you will pay your Social Security contributions each month.
Keep in mind that your subsequent retirement will depend on this base, So if you are already old enough and you can afford it, do not choose the lowest quota if you do not want to have a very poor pension when you retire, or get a private pension plan, as you prefer. This is one of the most important legal and fiscal obligations of the self-employed.
3. Keep a record of invoices issued and another of invoices received
Fortunately, we are not obliged to keep official accounts, but it is part of the legal and fiscal obligations of a self-employed person to have these log books up to date, so in case of inspection or verification, this is the first thing they will ask you for. The invoices that you issue must have a consecutive order number in the same year and there can be no gaps or unjustified jumps in numbering.
You should keep these invoices and your records for at least five years. And if they recommend it that way, then don’t complicate your life and do it as they tell you.
4. Submit your VAT return quarterly
In it you will state the tax base and the VAT of the invoices that you have issued, from which you will deduct the VAT of the invoices that you have paid (provided they are deductible expenses).
In the case of invoices that come from other EU countries, which will be without VAT, you have to pay the corresponding VAT and then deduct it as an expense. It’s bullshit, but that’s how it is. The declaration is filed online with form 303 and you have a help assistant.
5. Submit your personal income tax withholding statement quarterly
If you contract the services of other professionals in Spainyou are obliged to withhold 15% income tax (Be careful, if other self-employed workers make you an invoice without withholding, it is your responsibility to ask them to include that withholding on the invoice) and you will have to pay those withholdings in this statement. This declaration is presented with form 111, and
6. Submit a quarterly information return on intra-community operations
Here you will reflect the amounts of the purchases of goods or services that you have made to companies from other EU countries and the sales to those same countries. Be very careful, because if you do not present this declaration and then reflect in your VAT declaration the existence of these intra-community operations, the Treasury will enter some uncontrollable desire to tickle you and you probably won’t laugh. The declaration of intra-community operations is presented with form 349, and
7. Submit an annual VAT return-summary
In it you will reflect the amounts of each of the quarterly declarations in addition to other additional data, such as the breakdown of income by activities if you have more than one. This declaration must contain exactly the same data as the quarterly declarations and should also coincide with the gross income that you declare in your annual personal income tax.
If this is not the case, you can make it browner than if you mix ammonia with hydrochloric acid in the pool. The annual summary is submitted before January 31 of the following year using the
8. Annually submit a statement-summary of personal income tax withholdings
In it you must identify with name, surnames and CIF the people to whom you have practiced that retention. This is essential to be able to later justify the bills of expenses for services that you have contracted to other professionals. It is also presented in the month of January of the following year, using
9. Annually submit an informative declaration of operations with third parties
You must record all payments or income with the same company or person that exceed 3,000 euros in total per year. This must be submitted before March 1 using
10. Submit your personal income tax return
In the case of the self-employed, it includes the income and expenses of your activity. Again, if you have more than one activity, you will have to report those income and expenses separately in each of them. Tin…
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