When can invoices be made without being self-employed?

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The crisis has changed many things in Spain. Many people are turning to self-employment due to the lack of opportunities in the world of work. Some persons They invest all the money they earned in their Unemployment benefit in their own business, opening bars, restaurants, others open their businesses online, and some others join together to create a bigger business, including startups.

The problem arises when, in the case of Spaniards, and after several years living with the crisis, we have as the main consequence, after unemployment, an increase in self-employed workers, even when not exactly as self-employed registered in the Treasury and Social Security. Carrying out small jobs to help us make ends meet has become common, with great income that help with the domestic economy and that are not declared.

And this is against the will of people who seek work in compliance with all Spanish self-employment laws. But you don't always have the income to get a legal job. be profitable, or because the jobs are so sporadic that clocking in for a few days is absurd.
In these cases where you are not autonomous, many people wonder if could issue an invoice for the work they doWithout any of these actions being illegal, because, we insist, people do not want to work outside the law.

Well there is a chance to be able issue invoice without being autonomous, but you have to pay attention to certain points that are very important, to avoid unpleasant consequences.

Can I issue an invoice if I have a job? Can I do it if I am collecting unemployment benefits? Is there a minimum and a maximum to calculate it? We solve these doubts and some more associated with billing without being autonomous.

Can I issue an invoice without being autonomous?

Generalizing enough, if the activity we carry out is secondary and is not our main livelihood, we could issue an invoice. As an example, if you are a worker but in your free time you are an artist, craftsman, creator, editor, photographer or any other activity that produces profits.
It should be remembered that when a main activity that is the sustenance of life is carried out, it is necessary to register in the RETA (Special Regime for Self-Employed).

To issue invoices you need to be registered in the Census of Employers, Professionals and RetainersOtherwise we will be committing a crime. Anyone who registers in this census can issue invoices without being registered with Social Security.
The fact of not being autonomous and wanting to issue an invoice implies the obligation to pay VAT and personal income tax for their activity.

I am a worker and I need to make an invoice

If you are an employee and need to issue an invoice, we must pay attention that the total annual income does not exceed the SMI (minimum interprofessional wage), which in 2016 is € 9172.80 (14 payments). In the case of overcoming it, we will find problems with the Public Treasury and the Tax Agency, including with Social Security. We can be fined for a tax offense and Social Security can force us to pay unpaid fees while we bill.

If this amount is not exceeded, you are not obliged to register as a self-employed person, but you do have the obligation to declare this income and you must even pay the respective VAT.

I am unemployed, can I issue invoices?

If you are unemployed and receive unemployment benefits, for this case, You CANNOT issue invoices and you are obliged to register as a self-employed person.
If you issue invoices for unemployment benefits, it is possible that your unemployment benefits will stop being paid. A good tip would be to use what you have left as a grant and start a new activity as a freelancer, like the examples we mentioned at the beginning of the article. post.

It is essential to remember that even when you are unemployed you must be registered in the Census of entrepreneurs, professionals and retainers to be able to issue invoices.

In addition, it is strictly necessary to respect the maximum that you can have access for your activity, in other words, not to exceed the annual income in a year higher than the SMI that is previously indicated.

Billing through a cooperative

Cooperatives help people who are not self-employed but carry out activities outside their work or receive unemployment benefits. They mediate between the self-employed, advise them and offer multiple services.

When you need it issue invoice sporadically, the cooperative also offers its services. The target The final option is that you can carry out a complementary or sporadic activity and issue invoices. The cooperative will issue them in your name in exchange for a percentage of the total invoice or a membership monthly, depending on the type of contract determined.

What advantages does a cooperative offer?

• The most striking thing is that you avoid the monthly payment of the self-employed, which in Spain is estimated at 260 euros per month (the 'promotion' of € 50 lasts only a few months, in the end you will pay the same as the rest of the self employed).
• You free yourself from the expenses derived from the procedures of your activity
• By paying a small fee or a small percentage of what is billed, your business will be much more profitable.

How does a cooperative work?

Through the payment of a monthly membership, cooperatives offer multiple services that cover different needs. You carry out the work and the cooperative issues the invoice in your name and then deposits the total invoice in your checking account, retaining the percentage established at the beginning of the contract.

• You will be able to bill without being self-employed, paying the monthly self-employment fees only for the days you work, always through the cooperative.
• You save the freelance fee since billing is done through a third party and you do not need to be registered
• Receive advice at all times on the operations you are carrying out
• You save on administrative expenses and tax advice since they take care of everything, such as the VAT calculation, for example.
• They take care of the administrative procedures, so that you only dedicate your time to your work
• Some cooperatives even pay personal income tax for you if necessary.
• If you are unemployed and need to carry out some activity or sporadic work, a cooperative will register you for the days you need so that you do not lose the rights to the subsidy that you are collecting.
• The cooperative will be in charge of registering you and unsubscribing from Social Security every time you start a sporadic or frequent activity
• Likewise, if you are an employed person and do some sporadic work, the cooperative will take care of all the procedures.
You must pay attention that cooperatives are a temporary solution, and you should not resort to them as a frequent means, we will see this point later.

General tips

When you work doing activities on a regular basis, try do not issue invoices with the same amount, so that the Treasury does not consider it as a frequent practice, which could give rise to a sanction or fine for the commission of a crime.

If you are charging the Unemployment benefitYou must pay attention on the days that you carry out activities so that you do not violate the legislation and they withdraw the subsidy to which you are having access.

If any of the previously established requirements are not met, it is possible that the Treasury becomes aware of our extraordinary activity and imposes a fine. It is also feasible that if all obligations are not met, Social Security will force us to pay all fees that we have not paid while we carry out the activity and issue invoices.

Remember that the obligation to the Treasury does not cease to exist and You must pay VAT and the respective income tax. and the annual summaries of the activity carried out.

As if you were a freelancer, you must make sure that the invoices are well completed with all the required tax information. Try to save all the invoices for any need to present them to the Tax Agency.

Digital invoices are not valid unless they have a digital signature. Therefore, if you issue invoices in PDF format, they must be correctly signed to be valid, otherwise, use the usual paper invoices.

When to register as a freelancer?

We mentioned before that a great way to be able to issue invoices within the legal framework is through a cooperative, but that you should not have it as a frequent means of work. Why?

The invoices will be in the name of the cooperative, and not yours, so it is not advisable to do it all the time.

When you recurring income (we insist on resorting) exceed the minimum interprofessional wage plus 20%, is the best time. Why? The SMI is currently € 655.20 per month, and the payment to social security, without the flat rate, is € 256 (€ 52 the flat rate). If your VAT is 21% for each invoice… you will not earn money at the end of the month. You must add a percentage of the net profit to your numbers.

A great tool to calculate things, and to understand whether or not you should become a freelancer is the FreeLancer calculator, at the same time, it will tell you how much you need to bill per month for the desired payroll.