Most people believe that if we have a business plan and decide to implement it, the only thing we will need to pay is the cost of hiring freelancers. This is the monthly fee we pay to be able work as self-employed workers. The truth is, freelancers have much higher monthly expenses.
There are a number of fixed expenses we will need to pay. These expenses have nothing to do the fee but have to do with our activity. If it’s the first time we register or it has been several years, then the self-employment expenses for the first year won’t be the same as those for the second. We are not here to discredit your illusions. Instead, we want to help you get to the bottom of your project and give you a rough idea of what you’ll need to pay. Let’s get on with it!
It is helpful to be able to determine what expenses self-employed people should consider when discussing taxes.
Although VAT might seem like an expense, it is actually not. Why is this, if VAT represents between 10% to 21% of the profits. It isn’t like that. Yes, it assumes that amount. However, this does not depend on our benefits but is independent of them. This means that the buyer will have to pay the entire amount. The price we have set will include VAT. Freelancers can only save the money and then deliver it to Treasury when it is time.
Problem is when we don’t know or want to pay attention, and we spend the money that the Treasury requires. It is important to remember that not all money that comes into our boxes is ours. You must comply with the taxes. Personal income tax will be a major issue for self-employed workers. The tax will be between 7% to 20% of our income. It is another amount that we should save from month to month in order to avoid unpleasant surprises.
The best place to look for an agency that isn’t too expensive is the one you are most comfortable with. If we don’t have a lot to work volume, the usual price is between 50$-70$. We won’t accept anything more than that, as we can’t afford it.
Management is not an expense. It’s an investment in your time. You will never be able make profits if you spend too much time on paperwork. It is better to work and let others do it, even if it means we have to pay!
Taxes are not the only monthly expense of a freelancer. They are largely dependent on the type and amount of work done. The freelance journalist who works from home with a computer is different than the restaurant or delivery business owner. There are some expenses that are more common than others, so let us see what to consider.
Why haven’t you discussed the freelance fee in tax? Because we see it as an exception to the norm. What is there to learn? The amount they give us must first be added to VAT. Then, These are just a few details!
You can get the flat rate of $60 if this is your first time signing up, or if you haven’t been registered in more than three years.
This amount will be closer to $70 if you add VAT.
The flat rate mentioned can be extended for a few months by paying 50% of the minimum contribution and 70%.
Self-employed workers without bonuses must pay $300 for the minimum base, or $1,300 for the maximum. .
This amount will affect aspects such as our unemployment and our retirement.
What about the other expenses? These will all depend on your decisions. The math is the same!
You may not have known that freelancers can deduct certain expenses. We’ve already spoken to you about this. If we can prove them there are some expenses that may allow us to pay less to the Treasury. In certain situations, we may be able to deduct meals for the self-employed or part of the rent. This is also true for transport vehicles you rent or have in lising, and their visits to the workshop. What about expenses for lawyers, notaries, or other personnel? They are also tax-deductible!
It is possible to deduct taxes on all electronic materials you purchase for work or office. There are many options, from chairs and tables to computers. It is a good idea to know the deductible expenses for freelancers if you are looking to have some fun with your Income for freelancers.
Your agency should be contacted. Make it clear that you are interested in the self-employed income statement. If things are not going well, they should be able to help you. This is the best way to make money.