News for sole traders

Published by gcla

09 August 2017

“- How do you become an investigator?

– Get a license.

– I can’t investigate unless I have a license?

– Well, you can, but you’ll get caught.

– God, that’s what’s killing initiative in this country. Everything needs a license.”

The Good Fight, Season 1, Episode 6


In an episode of The Good Fight, Marissa Gold is thinking of becoming a private investigator. She asks Jay Dipersia and his answer makes her sick. Well, if she lived in Spain, she would also have to register with the Social Security as a Sole Trader.

Sole Traders have always been left behind as far as Social Security is concerned. Midway between Commercial Law and Labour Law, the lawmakers never acknowledged that neither the former nor the latter protects them properly. Nothing worse than no man’s land.

For Labour authorities, a sole trader is an entrepreneur. For Commercial Law, a sole trader is an individual who cannot access limited liability. Even if he/she sets up a company, the court-abused doctrine of lifting the corporate veil makes life impossible for them. Only as recently as 2013, the law included the possibility of limiting business liability, but only to protect the home and only if its value does not exceed certain thresholds. And of course, it leaves the sole trader unprotected against tax and social security debts.

The parliament and the government (currently, the distinction is indeed appropriate) never understood that it is businesses who create employment, and that 90% of the Spanish businesses are sole traders and small businesses.

However, the new political parties in the parliament are certainly bringing fresh air, such as the future Urgent Amendments in Sole Traders Statute Act, which include the following:

‒ The 50 €/month flat rate is extended from 6 months to 1 year. Sole traders who quit their business for two years and go back into business will be able to subscribe to this flat rate immediately.

‒ Women will have a 50 €/month flat rate when they take up their business after maternity leave.

‒ A 100% bonification for 12 months will be applied to those sole traders who must look after minors and dependent relatives.

‒ Sole traders will be allowed to deduct 20% of their utility supply expenses when they work from home.

‒ Sole traders will be allowed to deduct up to 26,67 €/day as travel and subsistence expenses and allowances if payment is made electronically son that it can be traced. The amount increases to 48,08 €/day if travelling abroad.

‒ Sole traders can change calculation base up to four times in one year, to adjust it to their variable income.

‒ Sole traders can sign on and off in Social Security Register up to three times in one year, so that they only pay when they have business.

‒ 100% of retirement pension will be compatible with labour life extension to work as a sole trader.

‒ Corporate Sole Traders rate will be fixed every year by the General Budget Act.

‒ Late payment penalties will be reduced to 10% in the first month.

‒ Social Security will return payment excess to those Sole Traders with multiple businesses with no need to request it.

In itinere accidents will be covered.

‒ Labour risk prevention training is improved.

‒ Improved requirements will be established for disabled sole traders.


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