special_k

well ive been with this job a week as a sales rep .got my contract .and gave all my details .now they have infoemed me social are going to take 300 euroes a month out of my account and tax 7 % can any one confirm this is correct ..
i might not even get a sale will it still be taken out ..confused yes i am

Janet

Yes, this is normal here, I´m afraid. Presumably your contract is a self-employed contract?? If so, this is exactly like mine, and my contributions are 230 Euros a month, with 30 plus to the accountant ... . Being legal requires this, whether or not sales come.

The tax of 7% is not the total either, I´m afraid. It is a deduction, and the full tax will eventually be sorted out by a gestor/accountant. After a year or so, the withheld tax should rise to 15% ... mine did, anyway.

special_k

thanks for you quick reply janet ..
id much rather be legal anyway ..i feel fine now i know cheers!!

Bubblewart

Guys
Is it possible to expand on this a bit?
Is the 300 Euros etc dependant on what you earn e.g what % of you wages get take for social. And Tax how come it raising from 7% to 15% and is that taken from gross or after social is taken?
You mentioned 'self emploed contract' what are the differences?

Janet

Bubblewart, please have a good search and read through the Working in Tenerife board, all this info is on there somewhere.

To start with though, please just read my earlier post! As I said there, social security contributions are a set amount ... and it's not 300 Euros, but 230. It is not a percentage of anything. It is what the self-employed "stamp" costs. This is normal and is the rate for self employed contributions here. It is completely unrelated to income, and again as I said to helhod, as far as the contributions agency is concerned, it doesn't matter how much, if anything, you earn.

Again, the explanation is above for the tax, but to reiterate, your employer is only required to deduct 7% in year 1, and this is what rises to 15% in year 2. It is not the tax that goes up, but the deduction at source. All we are talking about is a deduction to be offset against a final tax bill. The reason the rate changes is that there are allowances to take account of, and there is a set amount which you are allowed to earn before tax becomes payable ... which is why in the first year a lower deduction can be made. As in the UK, though, tax is payable on the gross amount you earn, after allowances, of course ... how not ?

As for the difference between employed and self-employed status (and contracts), have a look through the sticky threads in the Working in Tenerife Board. It is all there.

Bubblewart

Janet
Apologies. After posting the question I did see other info. I've also stated using your HAS THIS QUESTION BEEN ASKED BEFORE button.
Thank you though for the info.

Janet

The "has this question been asked before" button will only bring up previous enquiries if asked in the same words. It's far more effective, and far more extensive, to use the search facility.

Cathy

A friend of ours is thinking of going self employed and needs the lowest Autonomo.

Does anyone know how much and how many hours the lowest autonomo would be?

Just wondered how many people on the forum had one and if anyone could help??

__________________

potdog

Don't think Autonomo is based on hours like a Nomina is. As far as I know the lowest for a single person is about €240 per month. Its about €270 if you have dependents I think.

[Disclaimer On/]

Anyone more qualified to answer please feel free as the €240 is from memory what I used to pay and not a qualified up to date answer.

[Disclaimer Off/]

Potdog.

Karen1234

The amount does not alter whether you have dependents or not. My husband pays just short of 240 euros per month like most of our self employed friends. But my next door neighbour says she pays a reduced rate as she works on the market for a couple of days a week. When I see her I will ask what she pays and how many hours she is allowed to work.