Autonomo

Thanks very much for that - very informative. One more question. If the company I work for has me registered as autonomo, to help their own accountancy/tax situation,  and I fail to pay anything out of the money I earn, or fail to register myself as autonomo, will this show up at the Hacienda??

Thanks, Amatista

Hi,

1. You must regiter autónomo, or the accountant of the company can do it for you, your fiscal number will be your NIE and the company will see you are registered when they have to pay your IRPF. You cannot say you will regiter and not do it. A lot of companies also ask for the 036 or 037 (i think) registration models. I don´t have only one company that I invoice, I work with several and I cannot "lie" with regards to my registration. One, because I put IRPF and IVA and two because they pay the IRPF for me in Hacienda and as I said they deduct my bill as an expense.

2. That is what you have to understand. The IRPF is paid directly by the company to Hacienda, 15% of the 1000, not by you. You have to pay, every 3 months the VAT. If you balance the VAT you invoiced with VAT from your expenses, you don´t pay anything, but if you don´t you will have to give the VAT to the Hacienda. I was not careful, did not have a lot of expenses with VAT and had to pay for the last 3 months 740 euros and believe me- it hurt.

Check with the company the exact situation, because they will have to pay the IRPF directly to the Hacienda for you-150 euros, you will have to pay the VAT, every 3 months if you cannot balance it, plus income tax if you don´t put any invoices as expenses (rent, utilities, phones, gasolina,etc.).

Registering autonomo is not easy and you have to see if it is worth it and also see what an accountant will charge you. I pay mine monthly, but there are some that charge only every 3 months, when the tax has to be done.

Good luck and I hope I answered your question.

Valentina

Thanks very much - it doesn´t really seem worth it for my partner, but as there are no alternatives ...... well not legal ones anyway, we will have to see ...thanks again. I know someone who was asked to go autonomo by his company, who pay him extra in order for him to pay his ´autonomo´ costs, which he doesn´t do. He keeps the money and gets paid by cheque. Surely that is a risk?

Amatista

So in a nutshell, if someone was earning €1,000 a month on an autonomo basis, they would be subject to €250-300 social security plus cost for accountant, IVA payable every 3 months, and IRPF of 15% every month. In other words, they would be left with approx. €550.00 before IRPF? Bloody hell - no wonder so many people don´t bother!

You welcome, but I really don´t know how you can keep the money and don´t pay Hacienda. As I said, it is not you who pay the IRPF (15%). It is the company direct in their declarations. Out of 1000 euros you get only 850 euros and 150 euros goes in the same month to Hacienda. And the VAT or a possible income tax, or even the accountant´s fees (you need to have somebody doing your taxes), if you don´t pay or do your declarations you will get caught by Hacienda or by the company itself.

I don´t like paying as much as anyone, but I have to do it for me and my clients.

Once again good luck and hopefully all will be OK.

Valentina

Thanks Valentina and have a good Sunday.

Jane

Amatista

here is a simple example of an autonomo earning 1000 per month

you invoice your employer( there is certain info to be included on the invoice but your accountant will advise)

                                             earnings         1000

                                   less IRPF 15%            150

                                   plus iva      18%            180

                                    net paid to you          1030

IRPF is your income tax and is paid by your employer to the Hacienda

IVA is paid on you behalf by your accountant once a quarter less any IVA you can reclaim

your employee can reclaim the IVa you charge if they are registered.( which they should be)

the cost of a good gestor/accountant is about 90 euros per quarter.  

on this amount there should be no further income tax to pay.

hope this helps

Thanks very much - very helpful