Independent Consultant

nsdh · Post by **nsdh** » Tue Oct 21, 2008 12:19 pm

Hi,

Please let me the answer for the below.
Is it possible to work as independent consultant in Finland? what should i do? I am a student. Do i have to start a company for it? I have job as independent consultant.

Thanks
nsdh

**Sponsor:**

EP · Post by EP » Tue Oct 21, 2008 12:38 pm

Consultant in what field?

Sure it is possible. And yes, you would have to start your own company. I just doubt that you don´t have enough knowledge (whatever field) to be a trustworthy consultant. Usually independent consultants are people who have long experience and who have already proved their worth and knowledge in working life.

Pursuivant · Post by **Pursuivant** » Tue Oct 21, 2008 1:07 pm

unless you are selling tupperware or soap and vitamin pills...

Rosamunda · Post by **Rosamunda** » Tue Oct 21, 2008 1:44 pm

You do not have to set up your own company if your annual income is below the VAT (alv) threshold. But if you do not have a company then you cannot deduct VAT either. You would declare your income to the tax authorities in the normal way. You would be personally liable for any debts or other liabilities.

There is also a ton of information posted on this forum, if you want more info about setting yourself up as a sole-trader (toiminimi). Use the search engine.

nsdh · Post by **nsdh** » Tue Oct 21, 2008 2:23 pm

Thanks for quick replies.

I will be earning 4000Euros per month. Do i have to start company for that? Just paying tax directly for that amount is enough?

I am talking about IT field. I got an opportunity to work independently, Is there any problem for the company from rules, if Iam independent consultant?

-Deviprasad

sinikettu · Post by **sinikettu** » Tue Oct 21, 2008 2:39 pm

It depends on your clients/customers.
If they tell/inform the taxman that they have paid you X amount in fees.
The tax man will want to know more about you.
VAT has to be paid on consultancy fees.

Rosamunda · Post by **Rosamunda** » Tue Oct 21, 2008 2:46 pm

Yes, 4000 e a month is 48 K euro a year so you must do ALV accounting. It is best to start ALV accounting from the start rather than wait till you reach the threshold, saves having to back pay big amounts. So you need to set up a toiminimi and register your company. As a sole trader your income from trading will be added to any other income you have and you will be taxed on that. You will pay roughly the same amount of tax as if you were salaried. However, some of your purchases will be deductible (eg if you need to buy computers etc). You will also have to pay into TEL for your insurance.

As I said before.... there is already a ton of information on this forum. You will find it using the search engine. There are also some stickies and links to useful websites.

If the paperwork puts you off then you should think about going salaried.... if that is an option.

Finland Forum

Find information about moving to, living in and life in Finland