The Congress of Deputies is discussing and voting this Thursday on the royal decree of 13/2022 of 26 July establishing a new contribution system. self-employed or freelancers and protection is improved for the cessation of activity. The decree comes from an agreement between the Government and social actors and opens the door to a cultural change that will force affiliates to work. CHALLENGE take out the calculator to reformulate their quotas. From 2023, every self-employed worker will be paid based on their net income or “real income” for baptism. Social Security. The new quota system will range from a minimum of 230 Euros to a maximum of 500 Euros. According to the ministry’s preliminary calculations, with the new system, three out of four freelancers will pay the same or less, while the remaining fourth will see their mandatory contributions increase.
Until now, the self-employed paid monthly wages according to their preferences and whatever income they had. In this sense, unlike wage earners, one part or the other personal income tax depending on how big your payroll is. A stubbornnessSelf-employed, meaning that so far the vast majority of the group has chosen the minimum quota, 294 €. Either because their income does not allow them to contribute more for better benefits in the future, or because they prefer to keep that extra money in their pocket and spend it on other things. From 2023, the pay each freelancer pays will depend on the net returns of their activities – some form of benefit account.
How will these net returns be calculated?
The spirit of the new plan is to add income and subtract expenses. And the number derived from this calculation should be multiplied by the table below. 15 episodes That Social Security defines and will be reviewed in General Government Budgets each year. The self-employed person will pay less if they are in lower brackets and more if they are in upper brackets. A prominent detail from self-employment organizations is that income and expenses are calculated annually, although the salary is calculated monthly. For example, if their monthly income (income minus expenses) is less than 670 euros, the self-employed person must pay a wage of 230 euros in 2023.
The key to the new system is deductible expenses, because income is a relatively simple part of the equation. Income is earnings from economic activities and from the work of the self-employed.
What expenses are deductible?
In the new reform scheme, all expenses already accepted by the Treasury are counted as deductible expenses. These must meet three requirements: connected to economic activity (something that invites different interpretations) defend and they should be accounting registered. Classic examples are purchase of materials or raw materials, salaries of responsible workers, rental of premises or equipment, services to companies, financial expenses or depreciation, among others.
When self-employed have deductible income and expenses for the year, additional 7% these expenses as “barely deductible” expenses without having to credit them. This additional bonus is designed to smooth out the balance of spending and actually lower wages, a card put on the table by the Government to attract social partners to the deal.
Can you change the fee?
Quota election officially voluntarily and the self-employed person’s estimates of exercise. However, if you earned more than you expected during the year, the Treasury knows how much income you have earned and will charge the corresponding pending contributions. And conversely, if the self-employed has estimated their contributions better than the formalized one, they can request the public treasury to refund the difference at the end of the year. Self-employed worker can range from: six times a year fee to adapt to the development of your business.