400€ job and freelance work
June 19, 2009 | 25,00 EUR | answered by Michael Herrmann
Good day!
I am currently employed full-time, but I am considering working part-time, possibly on a 400€ basis, and covering the rest of my income on a freelance basis.
My questions are as follows:
Do I need to insure myself in this case, like a self-employed entrepreneur?
Or are all statutory insurances already covered with the 400€ job?
What taxes do I have to pay? As a freelancer, I am likely to remain within the small business regulation for my turnover. Will the basic tax exemption for the 400€ job remain?
Thank you in advance and best regards.
Dear inquirer,
First of all, thank you very much for your inquiry, which I would be happy to answer based on the information provided and in the context of your initial consultation. The response is based on the facts presented. Missing or incorrect information about the actual circumstances can affect the legal outcome.
With the 400€ job, you earn tax-free income. This applies regardless of any other income you may have. The employer deducts social security contributions, but these do not entitle you to any benefits. This means that you are neither covered by health insurance nor retirement insurance through this employment. There is the possibility to increase the flat-rate pension contribution to the standard pension contribution in order to acquire pension entitlements. However, please note that due to the low income, these pension entitlements will be very minimal.
As a self-employed individual, you are responsible for your health insurance. You can choose between a private or statutory health insurance fund. The advantage of voluntary health insurance with a statutory health insurance fund is that the contributions are income-based and free family insurance is possible.
The type of retirement provision is up to you. The Federal Employment Agency also offers the option of voluntary unemployment insurance.
The income from self-employment is considered profit. This income is taxed in the same way as any other income. It is important to note that initially, there may not be much income tax to pay, as there is a tax-free basic allowance of 7,664€. Only when the taxable income is higher, income tax must be paid.
The small business regulation states that turnover tax is not levied on amounts up to 17,500€ (gross). This is a provision of the turnover tax law. Therefore, this does not mean that the income is tax-free in terms of income tax. If you mainly deal with entrepreneurs who are entitled to deduct input tax, it may be beneficial to waive the small business status.
If you have further questions regarding your business start-up, you can also contact me at 0221-3489109 or beratung@steuer-mobil.de.
I hope this information has given you an initial overview of the situation and remain
Yours sincerely,
Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax Consultant
