On April 6, the income tax declaration campaign began. All taxpayers have until June 30 to submit their accounts for the 2021 financial year. However, the case of the self-employed is more complex because they have a series of aspects to consider in order to know what can be deducted and what cannot, what income must be declare etc

in order toe clarify all doubts, we are going to present the novelties that this campaign brings to self-employed workerswhat you have to declare and what can be deducted.

Which self-employed have to make the declaration and documents they need

To begin with, the self-employed professionals who are required to file their personal income tax return are:

  • Those with economic returns of more than 1,000 euros per year.
  • If they have had property losses of 500 euros or more in income from work, capital or economic activities.
  • All those who take advantage of the deduction for investment in their habitual residence or for a savings-company account.

Therefore, Practically all self-employed professionals are required to submit their income tax return. It is possible to request an appointment to do it in person, it can be done by phone from May 5 or it can be presented electronically.

Either way, the documents they need are:

  • The draft of the declaration itself in which the fiscal data is indicated.
  • The authorization of the spouse, in case of presenting it together.
  • DNI.
  • Cadastral reference of the home owned or rental contract.

where to start

The first thing the self-employed worker should do is get hold of theiru draft in which all tax information comes. It is the first step to be able to check all the data that the Tax Agency has.

To download the draft it is necessary to have [email protected] PIN, digital certificate or electronic DNI. In case you do not have any of these options, there is another possibility. It’s about getting a reference number. This code is obtained by entering the amount from box 505 of last year’s return on the official Income 2021 website.

Already with the draft, the self-employed must check all the data, to be able to modify what is necessary and declare everything that is required by law, as well as aid, benefits and everything that is susceptible to deduction.

What must the self-employed declare?

The first thing that must be declared is the income they receive. Everything that is earned by the exercise of the activity must be declared. This item includes what are called operating income, which is obtained from the sale of the products or services that the self-employed market. But also those indirect ones that are generated derived from this activity itself.

They must also declare what was gained or lost by transfer of assets. If, for example, a place has been sold or bought, it is mandatory to declare the gains or losses that the operation has entailed.

Benefits and aid are also declared. For example, the extraordinary benefit for cessation of activity. But also subsidies, whether to alleviate the negative effects of the coronavirus or not, those intended for investment, and any regional or state aid in order to improve the solvency of the self-employed and SMEs.

What can be deduced

The self-employed can deduct a series of expenses derived from their activity. That yes, the Expenses must be tax deductible, as specified by the Tax Agency. In other words, all those expenses that are directly related to the professional activity can be stated. Besides, it is necessary to be able to justify them (via invoice or bank statements), in addition to being included in the accounting books.

Among the deductible expenses of the self-employed, the following stand out:

  • The self-employed quota itself.
  • Raw Materials.
  • Machinery.
  • Salaries.
  • Social Security expense of dependent employees.
  • Meals and lodging (with their established limits).
  • Rental of premises or office.
  • Supplies of electricity, gas, telephone, etc.
  • Insurance.
  • Investment products.
  • External professional services.

In addition to these expenses derived from the professional activity itself, also the self-employed other more general expenses can be deducted:

  • Up to 2,000 euros per year in the pension plan or 30% in net earnings from work.
  • Up to 15% (with a maximum of 9,040 euros) of the mortgage paid in 2021, provided it was signed before 2013. In the case of rent, the cap to deduct is 10% (also with a maximum of 9,040 euros annually), if the contract was signed before 2015.
  • One of the novelties of this campaign is the limit to be deducted in the individual pension plans. It has been set at 2,000 euros.
  • The quotas of professional associations or unions can also be deducted 20%.
  • Another novelty of this campaign is that self-employed workers can deduct works carried out whose purpose is to improve energy efficiency. The established maximum is 20% of the total cost, up to a maximum of 5,000 euros.
  • The self-employed dedicated to cinema can also deduct the investments they make in Spain for the production of films, short films or live shows.



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