Self Employer


The main changes for a self-employer in 2018


SOCIAL SECURITY QUOTE / MONTHLY QUOTE
New self-employers pay a reduction* on the social security quote
• 1-12 months 80% reduction so a quote of €50 a month
• 13-18 months 50% reduction so a monthly payment of €137,97
• 19-24 moths 30% reduction so a monthly payment of €192,70
• > 24 months minimum quote €275,02 unless you are a women under 35 or a men under 30 years. In this case you will receive a reduction of 30% for 12 more months.

*This rule does not apply for self-employer who starts a corporate and for persons who have been self-employer in the last two years, three years in the case the self-employer was subsidized.

 

The minimum contribution bases for self-employers is €919,80 and the maximum €3.751. While waiting for the final approval of the Law of general budgets, the estimation is a rise of around 3-4% of the minimum base and quota of self-employed workers. It is expected to be effective in the second half of the year, making the annual increase be 1.5-2%. In this way the minimum contribution base would go from the current €919.80 to € 938 and the self-employed quota from € 275 to € 279.

The minimum contribution base of the corporate self-employer will pass on January 1, 2018, from the current € 1,152.90 to € 1,198.08 a rise of 4%. According to these calculations, the quote for the corporate self-employer will change from almost € 344 to € 357, which means an increase of €13 per month.

Increase in the number of changes in the contribution base: you are allowed up to 4 changes of the contribution base per year, two more than currently allowed. If you make you change request from January 1 to March 31, the change will be effective on April 1. If you request it from April 1 to June 30, the change will be effective on July 1, if you request it from July 1 to September 30, the change will be effective on October 1, if you request it from October 1 to December 31, the change will be effective on January 1.
This is very useful for seasonal businesses, or persons who receive more or less in certain times.

Register and discharge as self-employer. The self-employer may register and discharge up to three times in the first year, depending on their interest.

During maternity you will have a 100% exemption of the quote.

  • Autonomous maternity leave: Autonomous mothers and fathers who take leave will be exempt from paying the self-employed during their enjoyment. This bonus of 100% of the autonomous quota is not subject, as so far, to hiring a replacement worker. Another novelty that could arrive for those workers in 2018, but needs the approval of the General Budgets, is the extension to five weeks of maternity leave.
  • The bonus of 100% of the fee has been extended to 12 years when there are minors (up to that age) in charge. In cases of paternity, maternity or adoption leave, they are exempt from paying the fee.
  • Autonomous mothers can benefit from a bonus in the quota of common contingencies after discharge. This bonus consists of a flat quote of € 50 for one year.

Family: The self-employed can hire family members up to the second degree by consanguinity or affinity, with a bonus of 100% of the fee for one year.

Vulnerable people: the fees of disabled people, victims of gender violence or terrorist, will have a reduction of 80% of the fee for one year, and 50% for the next 48 months.

Only the days of registration in the RETA are paid. Another novelty of 2018 that is also the result of the law is the payment for real days of high and low. This means that the payment of the fee will not be made for the calculation of the entire month but proportional. Of course, this option is limited to the first three highs or lows during the year. This means if a self-employer is registered on January 25th, he will only pay a quote for the 6 days of the month.
Modulation of surcharges on delayed payments of the monthly quote. The new law reduces in 2018 the surcharge from 20% to 10% if you pay in the next calendar month.
Modules limited to:

  • Volume of revenue € 150
  • Billing volume € 75,000

The excess of quotation is returned without request. Refund for excess of contribution payment in case of various activities. The reformation of the law for freelancers brings a novelty for those self-employers who have various activities / work, that will refund the quote if it excessed. If this is the case, Social Security will return the excess of quotation without having you to request it. The self-employed who declare a various activitivties and have a full-time employee contract, will benefit from a 50% discount for 18 months and after 18 months, the discount will be 25%.

Self-employed quota. It is the responsibility of the General State Budget (PGE) and is no longer related to the Minimum Interprofessional Wage (SMI).

Reconciling retirement and self-employment: In 2018 the collection of 100% of the retirement pension will be compatible with the exercise of the activity as self-employer, under the condition that at least one worker is hired.

Accident at work or an accident commuting work: Regarding occupational health and rights, the self-employed reformation incorporates an important novelty in 2018. The accident during travelling to work, that is to say, the one that occurs during commuting to work, has been considerate as a work accident and therefore those who are self-employed are quoted for occupational contingencies and will be entitled to benefit as a work accident.

Direct debit mandatory for payment of the self-employer quota. This is what the General Regulations for the Collection of Social Security have provided. In this way those self-employed who do not pay their fees by direct debit must communicate before January 14 the number of the bank account in which they wish to charge their receipts.

 

WHAT CAN YOU DEDUCT IN 2018


Food and overnight stays are deductible in the IRPF.
When a self-employer was going to see a client and he had lunch or dinner in a restaurant, the law did not allow him to deduct that expense as maintenance. Now, instead, those meals will be deductible. This is not the situation when the self-employer is eating with the client, because that would be customer service and yes they were deductible, but persons who have to eat alone and who work at home.

  • The restaurant or hotel must be situated outside the fiscal domicile of the self-employer who works at home
  • Electronic payment
  • Obtain official bill/invoice
  • Food: national maximum €26,67 a day / international maximum €48,08 a day
  • Overnight stays: national maximum €53,34 a day / international €91,35 a day

Deduction of 30% on the expenses of supply cost like light, water or internet, if you work from home. In this case you will be able to deduct the supplies related to the activity, as long as you have notified the tax office that your place of residence is linked to your activity by model 036. Of course, you will not be able to deduct all of the affected expenses but only the 30% of the total area allocated to the activity, so the existing proportion between the square meters of the house destined to the activity with respect to its total surface.

 

Please contact us if you want us to arrange all the paperwork in order to become self employer.

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