Below, we explain solutions that the law allows you to cushion the impact of taxes in the accounting of your business but also the options of saving your obligations with Social Security:
Income tax and VAT deductible to save more
However, the deductions of expenses in the IRPF and VAT should not be taken lightly by the self-employed worker, who taxes indirect estimation as an easy saving formula. Apply according to the legally established expenditure affected by the activity, duly justified and accounting registered, to help you save and increase your solvency.
We detail the tax deductions in the IRPF. This year, the Law of Urgent Reforms of Autonomous Work added a novelty. The deduction in Personal Income Tax of 30% of the expenses on the percentage of housing affects the activity and the deduction of allowances in the same terms as the workers of the General Scheme.
Also, remember that you can also benefit from deductions for maternity, large family, and descendants or ascendants in charge with disabilities.
Discharge of expenses before the start of an activity
The beginnings can be challenging. Therefore, it is better for you than ever to seek maximum savings. Hacienda allows the deduction in the IRPF and VAT of necessary expenses for the start-up of the business. These are investment expenses that you can deduct provided that these requirements:
- Give notice to the Treasury of the intention to undertake to present model 036 and check box 504. This procedure notifies a discharge before the start of the activity.
- Invoices issued with a date after said previous discharge in the Treasury.
- A posteriori, you must proceed to a second registration in the Treasury to start your activity.
Pension plans
Contributions to pension plans also have an essential fiscal advantage if the self-employed person can deduct up to a maximum of 8,000 euros or up to 30% of the net income from economic activities or work.
Health insurance
Do not forget to take out the health insurance. The medical insurance allows the self-employed to deduct the premiums up to a limit of $500 per person. The self-employed person can also include the spouse’s fee and children under 25. The limit of $500 per person extends to $1,500 for a person with a disability.
Reduction per start of 20% per start of the activity
Suppose you start economic activity indirect estimation without having exercised any other in the previous year. In that case, you can positively reduce by 20% your net return (income – expenses) in the first year and the next—20% on your income tax. If you have losses in the first year, you will not accept the reduction, although it is reserved for you when you fulfill the conditions.
Moving from a natural person to a legal entity
The autonomous tax determines the benefits it obtains. For this reason, the tax burden of the self-employed person, a natural person, is generally greater than that of a legal person. When you’re billing as self-employed, and the threshold of $46,000 exceeds, you should consider switching from autonomous to society.
Recover VAT from defaults with a rectifying invoice to save more
Unfortunately, unpaid bills are a continuum in independent accounting. Despite this, nobody escapes the quarterly appointment with the Treasury to declare and pay VAT through the 303 models. Still, the self-employed can recover the amount of the tax and thus the liquidity it needs.
This possibility, for which a judicial or notarial injunction process must be carried out, is subject to the debtor’s requirements as self-employed or a company. The collection of the invoice must not be during the six months following its issuance. The solution to the problem lies in the distribution of a rectifying invoice, canceling the VAT quota of the original, which you will submit to the Treasury, and you will include it in the quarterly model of the period in which you issue it.
Welcome to the self-employment quota bonuses
Already in the section of Social Security, the reductions in the quota of self-employed are among the most remarkable savings tricks of this top ten.
The most notable of the bonuses is that the current flat rate represents a saving of up to $2,700 during the first year for newly self-employed people who take advantage of it. This saving is reduced by tranches during the second and last years, except for self-employed under 30 and the autonomous ones under 35 who enjoy the bonus during the third year.
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