We review the advantages and disadvantages of stopping our activity as self-employed workers
We tell you how this is a more common procedure in seasonal sectors
Many self-employed workers take advantage of the months of July and August to take their summer vacations, taking advantage of the decrease in their workload or because their own clients are also leaving.
However, they do not enjoy them with the same peace of mind as others. One of the main drawbacks for self-employed people on vacation is that, in addition to not working and stopping their billing , many of their costs remain the same: utility costs, payments to suppliers, social security or the self-employed fee.
For these reasons, in an attempt to save money, many self-employed people are considering whether to “pull the plug” and cancel their vacation period so they don’t have to pay the fee. At first glance, it may seem like a good idea, but to know whether it is worth it or not, several factors must be taken into account.
Advantages of cancelling during vacation periods
First of all, we will enjoy a saving on the self-employed fee . If we are not going to have income for a while, it is appreciated not having to pay, even if it is the minimum fee. Let us keep in mind that, in addition to not invoicing, there are other expenses that we will surely have to maintain such as office rent, mobile phone, Internet, etc.
We can forget about keeping invoices , accounting , etc. during that time. Since we are not registered, we will not pay taxes in the quarterly declaration during that time.
The splitting of the quotas
Since the new law on self-employed workers, you can only pay contributions for the days you are registered within a month . What does this mean? If our client only works the first 15 days, we can cancel the rest of the work without having to pay the full fee, only for the days registered.
Although it is a facility to take into account when saving costs with our self-employed deregistration , we can only benefit from this possibility to register and deregister three times within the year .
It will affect our retirement
Another disadvantage that comes with the absence of self-employed workers due to vacation is related to the retirement pension . When calculating the amount paid, these months of rest are taken into account for the annual calculation but adding up to zero .
For self-employed workers in an age range azerbaijan email list 194608 contact leads close to retirement , periods without contributions could cause problems in their retirement pension.
That said, it is not crazy for a self-employed worker to occasionally deregister from the RETA and not pay contributions, as long as it is clear that the rights that may be lost are offset by the benefits of a necessary break .
We will lose the flat rate
It is a basic requirement that either we are registering for the first time, or we have not been self-employed in the last 2 years . Therefore, if we deregister in June, with the intention of returning in September, we will go from paying 50 euros per month to 279 (after the approval of this year's budget) if we pay the minimum contribution base.
We will not be able to deduct VAT or expenses
As we have already said at the beginning of this post , although we do not have to pay the self-employed fee during that period, there are other factors that we cannot eliminate and that will continue to be deducted from the bank account, such as rent, electricity, telephone, etc. However, we will not be able to deduct either the VAT or any expenses in the form of personal income tax from everything we pay during that time.
We will lose the bonuses
This is one of the worst disadvantages of all. If we benefit from a bonus on the self-employed fee, for having recently started the business , for example, we will lose it when we process the deregistration. That is, even if we manage the registration again within the months provided to enjoy this benefit, we will no longer be able to do so.
