False self-employment
March 29, 2018 | 25,00 EUR | answered by Steuerberater Bernd Thomas
As a freelancer, I run a martial arts school. Now two long-time students want to take over training sessions, which of course should not be done for free. This involves amounts of approximately 600 euros per person per year.
How should this be reported in the income statement (EÜR) without raising suspicion of bogus self-employment or having to pay social security contributions?
Dear questioner,
I will answer your question based on the information provided by you, without a detailed examination of your individual case.
As long as there is no self-employment from a social security perspective, you should declare these expenses as received benefits in your income-statement.
So-called false self-employment may exist, especially if the activity displays the following characteristics:
- unrestricted obligation to follow all instructions of the client
- contractors must adhere to specific working hours
- obligation to regularly provide detailed reports to the client at short intervals
- working in the client's premises or at locations specified by them
- obligation to use specific hardware and software, especially if this is linked to the client's control possibilities
In case of doubt, a determination of employment status procedure can be requested from the German Pension Insurance.
Kind regards,
Bernd Thomas
Tax consultant
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