What exactly is the difference between working under a TMI and working under a freelance tax card?
I have such small income and the only thing Ive been doing this past year is paperwork and paying taxes for my TMI.
How exactly does it benefit me versus just doing freelance work (without the TMI) as it comes in and paying taxes and social costs accordingly?
TMI vs freelance
Re: TMI vs freelance
It depends on the kind of business you are in. If you have a lot of expenses then it makes sense to set up a TMI. You can offset the VAT from your purchases against the incoming VAT you charge your customers. So, it depends on the cost structure of your activity. It also means you can work business to business with companies who may not want the bother of managing you on their payroll.
As far as your personal income tax is concerned there is probably not a big difference.
I was asked a similar question a couple of weeks ago by a freelance teacher who was wondering whether she should set up a TMI for her teaching. We discussed the pros and cons and our general agreement was that in her case there was nothing much to gain from registering (one reason was that as she does not speak Finnish and has no bookkeeping experience, so the extra paperwork would be an unnecessary burden).
As far as your personal income tax is concerned there is probably not a big difference.
I was asked a similar question a couple of weeks ago by a freelance teacher who was wondering whether she should set up a TMI for her teaching. We discussed the pros and cons and our general agreement was that in her case there was nothing much to gain from registering (one reason was that as she does not speak Finnish and has no bookkeeping experience, so the extra paperwork would be an unnecessary burden).