Self-employed collaborator

self-employed collaborator

It is becoming more and more common for companies to hire less and prefer freelancers to save on paying for the worker, vacations, temporary disability, permits ... Everyone knows that a self-employed person does not have any of that because it directly affects their economy. But, what you may not know is that as a freelancer a family member of yours could become a freelance collaborator.

Now, What is a freelance collaborator? What are your requirements? How can it be done? We explain everything to you.

What is a freelance collaborator

What is a freelance collaborator

The first thing you should know about a freelance collaborator is what they mean by this term. Specifically, we are talking about a person related to the self-employed person, a relative who lives and works with him to help him in the business.

In fact, It must be related to the second degree of consanguinity or adoption. This implies that an autonomous collaborator could be a partner, a son, grandson, brother, grandfather, brother-in-law, father-in-law, etc.

Actually, it is a hybrid of a self-employed person because for all intents and purposes this person will be taxed as an employed person even though they will be registered as self-employed (and therefore will have to pay the fees).

What are the requirements to be a freelance collaborator

What are the requirements to be a freelance collaborator

Although before we have brushed some of the mandatory requirements, we are going to break them down all of them since there are several:

  • Be a relative of the self-employed owner. As we have said before, up to the second degree of consanguinity or adoption.
  • Live in the same home and be dependent on this self-employed owner. In other words, the family member cannot be independent without their livelihood having to come from the work they carry out with that self-employed person.
  • Carry out periodic, not punctual work.
  • Not be less than 16 years old. In fact, until 2020 there was an age limitation (a maximum to hire) but this has been eliminated and now self-employed collaborators of 30, 40, 50 or 60 years old can be hired without problem.
  • That both are registered in the Regime for Self-Employed Workers (RETA) and are contributing month by month. In fact, the doubt may arise as to whether the collaborating self-employed person has to be self-employed for the first time or is allowed to register even though it has been years since he did so for the first time (here you would have to go to Social Security to find out the scale with the interpreting this requirement). In other words, it is not really known if one of the requirements is that the relative has never been autonomous before; or that there is a period in which he has not been autonomous.
  • Not be registered as an employee. That is, if a self-employed collaborator also has a job as an employee, this invalidates him to be a collaborator. And it is that, for now, by law multiple activities are not established for this type of situation.

What advantages does it have

Although this figure is not very well known, the truth is that it has many bonuses. For example, the first, and perhaps the most striking, is the fact that there is a 50% discount on the freelance fee for a total of 18 months, as long as it is as a new self-employed person. And for the next 6 the bonus will be 25%.

In addition, it will be exempt from submitting quarterly VAT and personal income tax returns, and the only thing that will have to do is to present / display the declaration of the income.

Now there is one negative thing. And it is that this group cannot access the flat rate of 50 euros, as other new self-employed do have an option.

For the self-employed owner, you may think that there are no advantages, since they would have to pay their share and that of that relative, in addition to the salary. But you should know that salary is later recorded as deductible expenses on tax returns, which is a good thing for them.

But it does not end there. You will also have a business fee bonus for common contingencies for 12 months provided it is a permanent contract. And how to achieve that? Well, you have to make sure that the self-employed collaborator has not been hired before under this figure (within a period of 5 years). Now, this situation must be maintained for at least six months, and the only way to terminate it would be:

  • Resignation of the worker.
  • Dismissal due.
  • Total permanent disability.
  • Completion of the work, service or project.

How to register as a freelance collaborator

How to register as a freelance collaborator

If after everything we have talked about, you think that this figure is one of the best for your particular case, you should know that the procedures to do it are very, very easy to do. Of course, both the autonomous owner and the one who is going to become a self-employed collaborator must do so.

What the "future" self-employed collaborator should do

Any. So, without further ado. The person who is going to become a freelance collaborator does not have to do anything. You do not have to register with the RETA, nor with the Tax Agency.

All this falls on the self-employed owner who is the one who has to do the procedure, but we already tell you that it is much easier and it is done in minutes.

What should the holder do

Now let's talk about the owner, the person who "hires" in a way his family member. The first thing you need to do is present the model TA0521 / 2, either in person at the Social Security administrations or make this presentation online through their website.

In this document, what is done is to notify Social Security that there is a change, which would be to take a self-employed collaborator. To do this, you will need the following:

  • The ID of that relative.
  • The family book.
  • Your registration with the Treasury (as owner).

Nothing else, once this procedure is delivered, your family member would already be considered an autonomous collaborator and you have to pay the fees for this (with the bonus that exists, of course) in addition to the salary. And yes, it is important that you give him the payroll month by month since these documents will be needed later to make the annual income statement.

Now that you know the figure of the self-employed collaborator, do you see it as viable in your situation? Let us know.


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