Economic uncertainty and constant changes have marked the last years of the self employed. In addition to the entry into force of the new quotas, self-employed workers must adapt your billing method soon helped by the Digital Kit.
In this context, TaxScouts, the online platform that simplifies tax filing for the self-employed and individuals, reveals the self-employed roadmap to 2025 with the main news that the self-employed will have to face during the next two years.
New self-employed quotas
The great change of this 2023 for the self-employed is that the new Social Security contributions have begun to be applied, which are calculated based on their real income. To do this, self-employed workers must make an income estimate as close as possible based on the results obtained the previous year to choose the contribution bracket in which to contribute.
The self-employed must take into account that in the event that the selected contribution bracket does not correspond to the actual income that they end up having, it will be possible change tranche every two months, that is, a total of six times throughout the year. In the event that at the end of the year there has been a lower contribution due to having chosen a lower tranche than what has been collected, the remaining part will have to be returned.
In the opposite case, in which contributions have been made in a contribution bracket greater than that of actual income, Social Security will return the corresponding amount.
The new quotas are being phased in over the next two years and are calculated based on the Net Monthly IncomeIt is as follows: to the benefit of the activity (annual profit: taxable base of the invoices minus the deductible expenses), it will be necessary to add the amount paid to Social Security, and from the result 7% of difficult expenses are subtracted. justification, instead of the usual 5% that was subtracted until a few months ago.
The result of this operation is divided by 12, and that is the Monthly Net Income figure, from which the new contribution table can be applied, which will progressively increase year after year until it is fully implemented in 2025.
Electronic bill
Throughout two years, until 2025, when it will already be mandatory, the self-employed must start issuing their invoices electronically, due to the entry into force of the ‘Create and Grow’ law. This new form of invoicing will allow greater transparency and control of operations, since a unique code will be generated for each invoice that will allow greater traceability. Likewise, the electronic invoice will allow a reduction in collection times and will also have a positive environmental impact.
Although this regulation will enter into force in March 2023, will not be mandatory until 2025, except for the self-employed and companies with a turnover of more than eight million euros. In order to implement the electronic invoice, the self-employed will have to hire an external company, which will be in charge of establishing this program, generating an additional expense to the many that already have. In the case of not implementing the electronic invoice, self-employed workers could face high fines and sanctions that could amount to up to 10,000 euros.
Digital kit
The self-employed have been the last group likely to receive aid for digitization. These will have until October 2023 to acquire solutions that not only allow them to comply with the obligation to issue electronic invoices but also in other areas of their business such as the creation of a website and internet presencesocial network management, e-commerce, customer management, virtual office services and tools, business intelligence and analytics, process management, secure communications or cybersecurity.
Through the Digital Kit Program, the self-employed and companies, without employees or up to two workers, may receive a bonus of up to 2,000 euros to spend on each of these solutions or services over the next year, being able to spend the bonus on several.
“During the next few years, the self-employed will have to adapt to endless changes that will have a direct impact on the way they carry out their activity. It is essential to be aware of the main legislative developments and aid to be able to take advantage of the changes in your favor, update yourself and benefit your business” says Jaume Suñol, General Manager of TaxScouts Spain.
