Self-employed and the income statement

In the case of the self-employed, practically everyone is obliged to submit an income tax return. The only exception that applies concerns those who have entered less than 1,000 euros throughout the year. In other words, even if you have only been registered with the Special Scheme for Self-Employed Persons (RETA) for a month, if the amount received exceeds this amount, you must report the amount.

This year the income statement campaign corresponds to 2021 starts on April 6th. for those who want to present it through the Internet, and They run until June 30th. However, the tax data can already be viewed on the website of the tax authority. If you want to opt for the personal form, you have to wait until May 26 Day on which the deadline for requesting an appointment for personal assistance begins.

You are interested in meeting the deadlines set for your presentation otherwise surcharges of between 5 and 20% of the amount to be paid will be charged. If the result is to be returned, a penalty of 100 euros will be imposed.

Among the most important innovations included in the income statement for the self-employed this year, Not methe platform that integrates financial services and business management tools for SMEs, freelancers and freelancers includes in their practical guide Income statement 2021 for the self-employed: definitive guide to presenting it correctlyfive major innovations.

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1.-Increases for the highest incomes. Employees with an annual income of more than 300,000 euros They have a two percentage point increase in personal income tax, up to 47%. For rents of over 200,000 euros Income tax rises to 26%. In goods of more than 10 million eurosalso raises wealth tax from 2.5% to 3.5%.

2.-A fourth tranche of savings income. A fourth section is incorporated for income from savings deposits, i.e. stock dividends, investments in funds or fixed-term deposits. A tax rate of 26% is levied on savings income that exceeds EUR 200,000.

3.-Changes in pension plan allowances. Deductions from individual private pension schemes will be reduced to a maximum of EUR 2,000 (EUR 1,500 from 2022). Business plans increase the limit to 8,000 euros. If you have both, the maximum reduction cannot exceed 10,000 euros. These must be entered in boxes 462 to 476 in the profit and loss account. In particular, the contributions to the plans made in 2021 are to be recorded in box 465.

4.-Special focus on cryptocurrencies. Those who have received benefits of more than EUR 1,000 from investing in cryptocurrencies must reflect this in the profit and loss account.

5. Exceptions for those affected by the La Palma volcano. Those affected by the volcanic eruption on La Palma are exempt from paying income tax. It is one of the victim support measures approved by Royal Decree-Law in October 2021.

deductible expenses

Unlike an employee, the data available in the Treasury for the self-employed are usually incomplete, making it difficult to ratify the draft they have submitted. Depending on your activity, they may or may not have your income data. but You will be missing a lot of information about your spending hence it is convenient to check them very well.

Another aspect that you must take into account is the autonomous community where you carry out your activity and make your declaration, since both the amounts of aid and the concepts of aid can be very different.

Nevertheless, and taking into account the considerations indicated, the main expenses to be considered as deductible are:

a.-monthly fee on social security and administration costs or legal or tax advice

2.-Subscriptions and Licenses on computer programs, tools, and expenses related to digital properties such as a website or hosting.

3.-investments in marketing and advertising, both offline and digital.

4.-Office rents -if it is registered with the Ministry of Finance- or co-working spaces as well as mobile phone-like supply costs in connection with work, electricity, internet…

5.-Working material like getting a computer, stationery, electronics…

6.-Payment in installments to professional associations and clubs

7.-Works carried out by external contractors (graphic design, editorial content, photos…)

8.-Contracted insurancefrom civil liability to life insurance, medical…

9.-Payment of wages and social security contributions in the case of contract workers.

10.-Diets, transportation, travel or accommodation, provided that the connection to the economic activity can be proven.

11.-Acquisition of books in connection with your work and the subscription to trade journals.

12.-Costs for the kindergarten or children’s educational centers if you have children under the age of 3. In this sense, they point out in Billin that the deduction for childcare is increased up to 1,000 euros provided they use approved facilities.

12.- Energy efficiency. Also remember in invoice, online invoicing program, which among the novelties of this year are deductions related to energy efficiency and the renovation of buildings, both apartments and premises. They point out the following: deductions for the renovation of the usual place of residence and energy renovation up to 20% with a ceiling of €5,000. Deductions for improvements in non-renewable primary energy consumption up to 30% with a maximum of €7,500. Deduction for dwellings with energy efficiency improvement measures with 30% reduction in non-renewable primary energy up to €15,000 or 60% of expenditure incurred.

13.-Special situations. Although they do not correspond to expenses related to the activity, it should be remembered that deductions also apply to large families and spouses with disabilities.

In Nomo they also recall that “the incorrect application of deductions or the omission of important or incorrect data will result in sanctions.”. In the case of serious violations, a surcharge of 15% will be added to the amount to be paid, and if important data is not disclosed or incorrect information is given, a fine of 300 euros will be imposed.

Submitting the draft with errors or incomplete information in personal and tax data is also punished with a fine of 150 euros.

Self-employed, income statement 2022, deductions, reta