Invoicing without being self-employed : keys and requirements!, is an article in which you will get the most important information about this requirement, even more so if you are one of the people who have stopped doing work and earning extra money, because you do not have an invoice.
The self-employed can invoice through cooperatives
Billing without being self-employed: What is self-employment?
According to the Autonomous Work Statute, Law 20/2007 of July 11, indicates that these are the people who frequently, directly or on their own account carry out a professional or economic action for profit, offering work or not to others on their own. alien This activity can be carried out part-time or full-time, on their own or autonomously.
One thing that must be taken into account is that when an individual declares himself self-employed, he must pay a fee, which can significantly reduce the income that is being obtained through the work that was done. This applies in case of just doing a sporadic task or even when starting a business.
Can you invoice as a natural person?
The key aspect that we must take into account to be able to invoice as a natural person is the number of times that an individual carries out the economic activity in a certain period or period of time.
However, the law does not establish the exact times that a person can perform a job as self-employed, without the need to be registered as such.
What the Supreme Court ruled in 2007, which indicates that the activities that are carried out on a regular basis and that have an income higher than the minimum interprofessional salary, are those that are considered self-employed. Therefore, based on this, we must specify three necessary requirements to be able to invoice without the need to be self-employed:
- The activity carried out cannot be the main occupation of the individual.
- The economic income obtained from the activity carried out must be below the minimum interprofessional salary, that is, 950 euros per month, 13.300 euros per year or 31.66 euros per day.
- When this activity is not habitual or constant.
How can you prepare an invoice without being self-employed?
Thanks to the "gaps" that the law has around this issue, but taking into account that you had to be registered as self-employed to be able to invoice and carry out any work on your own, the gap allows you to prepare invoices as natural persons without being registered in the Special Scheme for Self-Employed Workers.
However, a person who wants to bill without being self-employed must comply with certain procedures to be able to do so without generating legal problems. These procedures are:
- Declare and comply with all the tax obligations that the law indicates on the invoices issued. These obligations are: VAT when presenting form 303 (quarterly) and model 390 (annually), as well as personal income tax, presenting model 130 quarterly.
- Be registered in the tax agency, specifically in the Census of Entrepreneurs, Professionals and Retainers, submitting form 036 or 037. This is a census declaration, so no monetary figure should be canceled when carrying out the procedure.
After the individual completes this last procedure at the Tax Agency, you can begin to prepare invoices simply and taking into account that you must apply a withholding of 21% VAT and 15% VAT to the gross amount you wish to invoice for your work. % personal income tax.
Invoice cooperatives are a good option for freelancers
Can you bill through a work cooperative?
Although the procedures are simple to do, it entails a somewhat cumbersome and annoying process for those who are not familiar with all the tax processes found in the law. Another option that many people are putting into practice is to ask a company for the invoice.
When we refer to a billing cooperative or cooperative of associated work, we refer to companies that provide invoices to people who have low income for the work they do and who are not interested in registering as self-employed.
In order to enjoy this option, the individual must register as a member of the cooperative, becoming an employee and beginning to receive a payment corresponding to the amount generated by their invoices.
However, it is important to keep in mind that these invoices are not issued with the name of the person, but with the name of the cooperative.
What is the cost of signing up?
- Registration fee as a member of the cooperative for 30 to 100 euros.
- Percentage for company tax.
- Payment for registration in Social Security, this will be equivalent to the days that the individual has worked.
- Expenses for the management indicated by the cooperative.
- Payment of the minimum personal income tax withholding, that is, 2%.
What is the amount that the individual receives for the payroll?
In general, the cooperative makes the transfer to the individual's payroll, once the client makes the full payment of the amount indicated on the invoice.
How safe is it to bill through a cooperative?
Although this is an excellent option for those looking for temporary work, it can carry certain risks over the years.
These risks arise when the billing cooperatives are placed in the sight of the Labor Inspectorate for their fraudulent purposes, which will lead to the closure or dissolution of cooperatives, as well as placing others under the investigation magnifying glass by the authorities.
What is the limit amount that an individual can invoice without being self-employed?
One of the points that is usually very ambiguous is the issue of the limit amount that a person can bill for a job, without becoming self-employed.
However, when reading the resolution of the supreme court of the year 2.007 on the minimum interprofessional salary, which we named previously, we find that the Royal Decree in its law 231/2020, of February 4, indicates that the limit is 31,66 gross euros per day or 950 euros per month.
If the amount is higher, where can it be invoiced?
When this happens and the person does not even want to register as self-employed, all that remains is to bill with the help of a cooperative, which is responsible for registering them with social security for the work they are doing and for which they can receive payment.
This has been the only legal option that the person has and in which he can invoice a higher amount without having to be autonomous. The option of preparing or issuing a receipt is not legal for a person to consider if they are not registered as self-employed, since it can have important legal consequences, which may even lead to the payment of large amounts or fines.
Can you bill 3.000 euros without being self-employed?
If you have heard comments about the possibility of billing up to 3.000 euros without being self-employed, surely you have heard one of the most popular beliefs in the country and which is completely wrong and false.
This myth or belief has caused many people to believe that by billing below the annual amount indicated by law, it is completely legal not to declare the bills and they go completely unnoticed before the Tax Agency. But despite being an option, it does not have the legality to avoid serious fines or penalties.
Is it mandatory to register with the Treasury?
It is important to carry out this procedure in order to start billing on your own and not fall into illegal acts by not declaring your registration status and the corresponding taxes before the Tax Agency or Treasury. Although registering with the Treasury does not generate any repercussions, the need to comply with the tax declaration does arise.
A natural person performs the same inspection as a self-employed person, since the amount acquired by the VAT paid by the client is returned by the Treasury, minus the expenses resulting from this activity.
For this reason, it is important that the self-employed register with the Tax on Economic Activities (IAE) that best suits the professional activity that they carry out, this will then determine the nature of the taxation that the self-employed person has. That is, deductible items, withholdings, deductible expenses, among others.
The only positive point is that the process to register or deregister with the Treasury is an extremely simple procedure, which can be processed through the entity's website.
Self-employed
Requirements to register with the Treasury as self-employed
- Appointment at the Tax Agency, requested by the website to the nearest office.
- Form 036 or 037 format with each of the data requested from the applicant.
- Look for the Professional Activity Code on the IAE page or Tax on Economic Activities.
- Know the tax regime that is related to the activity performed.
- Cancel the taxes indicated by the entity for its registration in it.
- Document that confirms the voluntary discharge.
Requirements to register with Social Security as self-employed
- Fill out the TA.0521 form of the Special Regime for Self-Employed with the data.
- Indicate the code related to the economic activity carried out in the National Classification of Economic Activities (CNAE).
- Place the base amount of the quote that they are going to handle.
- Types of contribution and the coverage they will have.
- Register at the Social Security Electronic Headquarters in order to be up to date with notifications related to the institution.
- Bank account where the installments will be domiciled.
- Investigate if they meet all the requirements to obtain a bonus for being self-employed.
- Take into account the possible aid that a self-employed person can acquire through their community.
We hope that all the data that we leave you in this opportunity will be of great help to you and also that you can share it with all your friends and loved ones so that they are always kept up to date with this process.
If you enjoyed the information we shared in this article, we invite you to read about Mexico's Free Trade Agreements (Countries with agreements), where you can find all the countries that have agreements with Mexico and their main objectives. Finally, we've included a video where you can learn more interesting facts about this topic.