Side job 400€ and more in partial retirement
March 20, 2011 | 30,00 EUR | answered by Dipl.BW/SB Ulrich Stiller
Good morning ladies and gentlemen,
I am currently in the partial retirement (working phase) and will be entering the retirement phase on 01.06.2011. I founded an online shop in February 2011, which is currently not yet profitable. Since I will be in the retirement phase until 31.05.2013, I hope that the online shop will definitely generate profit by then.
I believe I can earn up to 400 euros and employ a part-time worker for 400 euros to help manage the still unknown income, which may be offset by other expenses such as creating terms and conditions, running the online shop, and setting up a booth at trade shows.
But my question is: Can I earn an additional 400 euros during partial retirement without deductions from my salary or pension? Would it be better to transfer the online shop to someone else during partial retirement until 31.05.2013, who can then declare it for tax purposes as a regular employee?
Dear inquirer,
Thank you for your inquiry, which I would like to answer based on the information provided and considering your involvement in an initial consultation as follows:
According to § 8 SGB IV, there is indeed an additional earnings limit. The claim will be suspended if an employee engages in activities or self-employment alongside their partial retirement work that exceed the minor employment limit of 400 euros per month.
Income is not fully taken into account, as you can deduct business expenses. To determine the income from self-employment, the profit can be determined simplistically: 30% of the business income can be deducted as business expenses. If business expenses are higher, deduction through appropriate evidence is possible. Expenses for the 400 euro job count as business expenses, if the expenses are reasonable.
It is indeed possible, for example, for the wife to register the business.
I hope I was able to assist you.
Kind regards,
Ulrich Stiller
Tax consultant/Diploma in Business Administration
