How to unsubscribe from social security as a self-employed person
Posted: Mon Dec 23, 2024 8:40 am
You have probably thought about working for yourself throughout your working life. Registering with social security and working as a freelancer is a good way to give free rein to your ideas and build a career for yourself.
Offering your services to other people and companies based on your experience and training will provide you with a means of livelihood. In this article we tell you how you can organize yourself in everything related to Social Security.
Possible doubts when registering for social security
When a worker is thinking about registering and starting to work for themselves, certain doubts may arise regarding the initial level of work. Will I be paying contributions for a full day? Will I have work all year round? Can I register partially and combine different situations?
Let's analyze some of these assumptions:
When it is mandatory to register
The first condition is the very concept of self-employed; according to social security, a self-employed person is someone who regularly, personally and directly carries out an economic activity.
By normal and according to jurisprudence, it is understood that income exceeds the minimum interprofessional wage during the calendar year. Therefore, this would be the main criterion for being obliged to register.
Please note that if you decide to register, you must also register with the tax office at the same time, because in order to invoice your clients you must ensure proper financial management and pay income tax and VAT.
We do not recommend that you register with the tax authorities without the corresponding processing with social security, as inspections often cross-check data and you could be penalized and forced to pay the corresponding fees.
What situations can I combine?
If you have a job that does not meet your expectations, either because it is not full-time or because you need to supplement your salary, you can also consider working as a freelancer. The key is to register with the RETA and comply with your tax obligations.
Please note that companies may include exclusive dedication clauses in their contracts, whether self-employed or employed. These companies seek to protect themselves against unfair competition. If this is not your case, you can register and start your activity.
In this case we must differentiate between multiple employment, in which one works for two different companies, and multiple activities, which is a situation in which one is contributing to the system from two or more different regimes. Spanish regulations take this situation into account, allowing it to be legal.
How many times can a self-employed person register?
If you have performed a sporadic service and need to invoice it, there is no problem, you can register and deregister with the tax office and social security for this purpose.
Please note that you can only do this three times a year and that you may lose certain bonuses. For example, the flat rate for self-employed contributions. When you register for the first time, you can pay just €60 for a certain period of time, but be careful, it counts the months in a natural way, not in terms of effective activity, so if you register sporadically, you will quickly lose this aid.
An advantage of this method of registration is that you will only be charged for the days during which the registration is effective, not for the entire month. Keep in mind that the days begin when the registration is processed with the tax office.
Self-employed person with doubts and paperwork about social security
How much does it cost to be self-employed?
When thinking about starting a professional or business activity, the cost structure to be borne is one of the concepts that you must have clearest. The first criterion that you must take into account when deciding whether to register is that your income forecast is greater than all the costs that you are going to incur. Our recommendation is that your structure is as flexible as possible and that you assume the least amount of fixed costs with which your business can operate.
However, you will not be able to avoid the legal costs of registering the activity: the social security contribution and tax payments will force you to have funds to cover these payments.
There are benefits for social security costs , such as the flat rate for new self-employed workers, which can help you start your business from 60 euros per month.
VAT is another expense that you must bear. It is money that is not yours, since you collect it to pay it to the tax office. Although you can offset it with your invoices and it is not a cost in the strict sense, you must have available funds, since most of the time the cash flows do not match, and you will be paying VAT on invoices that you have not yet collected.
Personal income tax also creates certain complications for you. If you carry out a business activity, you must submit quarterly payments on account. If it is a professional activity, you must enter the withholdings on the invoices, and your clients will be the payers, with the Treasury receiving the payment on account from their declarations.
Deregistration is carried out in the same way as registration, first requesting landline numbers list it from the tax office, and with the deregistration of economic activities (form 037), you can then go to Social Security to request deregistration.
Doing it electronically is the easiest and most effective way . Keep in mind that you have three days to do it once you have the date of cessation of activity. If you do not do it correctly, you will be charged for the remaining days until the end of the month.
Also keep in mind that you will receive a final self-employed fee for the days you have been registered in the last month.
How do I seek training as a freelancer?
You have probably also thought that you are not prepared to work on your own, that many things are beyond you, or that there are tasks that you have never done, such as being your own salesperson or managing your business.
Don't worry, the state public employment service provides funding for training self-employed workers. To qualify for these, you don't have to apply for subsidies or complete any paperwork. You just need to contact companies that carry out this type of training, such as Grupo Femxa . By presenting some simple documentation, you will be able to study for free and train in the areas in which you need support.
There are a large number of courses adapted to the self-employed figure. Access them and you will be able to train in different areas : linked to business administration and management, new technologies and digitalization, commercial management and marketing or linked to the physical operation of a company, such as hygiene and the environment.
Offering your services to other people and companies based on your experience and training will provide you with a means of livelihood. In this article we tell you how you can organize yourself in everything related to Social Security.
Possible doubts when registering for social security
When a worker is thinking about registering and starting to work for themselves, certain doubts may arise regarding the initial level of work. Will I be paying contributions for a full day? Will I have work all year round? Can I register partially and combine different situations?
Let's analyze some of these assumptions:
When it is mandatory to register
The first condition is the very concept of self-employed; according to social security, a self-employed person is someone who regularly, personally and directly carries out an economic activity.
By normal and according to jurisprudence, it is understood that income exceeds the minimum interprofessional wage during the calendar year. Therefore, this would be the main criterion for being obliged to register.
Please note that if you decide to register, you must also register with the tax office at the same time, because in order to invoice your clients you must ensure proper financial management and pay income tax and VAT.
We do not recommend that you register with the tax authorities without the corresponding processing with social security, as inspections often cross-check data and you could be penalized and forced to pay the corresponding fees.
What situations can I combine?
If you have a job that does not meet your expectations, either because it is not full-time or because you need to supplement your salary, you can also consider working as a freelancer. The key is to register with the RETA and comply with your tax obligations.
Please note that companies may include exclusive dedication clauses in their contracts, whether self-employed or employed. These companies seek to protect themselves against unfair competition. If this is not your case, you can register and start your activity.
In this case we must differentiate between multiple employment, in which one works for two different companies, and multiple activities, which is a situation in which one is contributing to the system from two or more different regimes. Spanish regulations take this situation into account, allowing it to be legal.
How many times can a self-employed person register?
If you have performed a sporadic service and need to invoice it, there is no problem, you can register and deregister with the tax office and social security for this purpose.
Please note that you can only do this three times a year and that you may lose certain bonuses. For example, the flat rate for self-employed contributions. When you register for the first time, you can pay just €60 for a certain period of time, but be careful, it counts the months in a natural way, not in terms of effective activity, so if you register sporadically, you will quickly lose this aid.
An advantage of this method of registration is that you will only be charged for the days during which the registration is effective, not for the entire month. Keep in mind that the days begin when the registration is processed with the tax office.
Self-employed person with doubts and paperwork about social security
How much does it cost to be self-employed?
When thinking about starting a professional or business activity, the cost structure to be borne is one of the concepts that you must have clearest. The first criterion that you must take into account when deciding whether to register is that your income forecast is greater than all the costs that you are going to incur. Our recommendation is that your structure is as flexible as possible and that you assume the least amount of fixed costs with which your business can operate.
However, you will not be able to avoid the legal costs of registering the activity: the social security contribution and tax payments will force you to have funds to cover these payments.
There are benefits for social security costs , such as the flat rate for new self-employed workers, which can help you start your business from 60 euros per month.
VAT is another expense that you must bear. It is money that is not yours, since you collect it to pay it to the tax office. Although you can offset it with your invoices and it is not a cost in the strict sense, you must have available funds, since most of the time the cash flows do not match, and you will be paying VAT on invoices that you have not yet collected.
Personal income tax also creates certain complications for you. If you carry out a business activity, you must submit quarterly payments on account. If it is a professional activity, you must enter the withholdings on the invoices, and your clients will be the payers, with the Treasury receiving the payment on account from their declarations.
Deregistration is carried out in the same way as registration, first requesting landline numbers list it from the tax office, and with the deregistration of economic activities (form 037), you can then go to Social Security to request deregistration.
Doing it electronically is the easiest and most effective way . Keep in mind that you have three days to do it once you have the date of cessation of activity. If you do not do it correctly, you will be charged for the remaining days until the end of the month.
Also keep in mind that you will receive a final self-employed fee for the days you have been registered in the last month.
How do I seek training as a freelancer?
You have probably also thought that you are not prepared to work on your own, that many things are beyond you, or that there are tasks that you have never done, such as being your own salesperson or managing your business.
Don't worry, the state public employment service provides funding for training self-employed workers. To qualify for these, you don't have to apply for subsidies or complete any paperwork. You just need to contact companies that carry out this type of training, such as Grupo Femxa . By presenting some simple documentation, you will be able to study for free and train in the areas in which you need support.
There are a large number of courses adapted to the self-employed figure. Access them and you will be able to train in different areas : linked to business administration and management, new technologies and digitalization, commercial management and marketing or linked to the physical operation of a company, such as hygiene and the environment.