Hi,
I have lived some time in Finland working free lance as a translator, but without my own business, i.e., my employers have paid my taxes but not my pension, which has apparently been my responsibility.
Now I am told that I may have to pay some 25,000 euro retroactively in contributions for the last two years. This is just beyond my means. Does anyone know anything about this?
Thanks
pension contributions retroactively?
Re: pension contributions retroactively?
Unless you've been making 200,000 per year* as a freelance translator, that amount for only pension contribution makes absolutely no sense. Either the information you received is inaccurate, or you (or your ex-employer) is omitting something.
* Pension contribution is 6.35%. For 25,000 to be your pension contribution for two years, you have to be making ~ 196k/year.
* Pension contribution is 6.35%. For 25,000 to be your pension contribution for two years, you have to be making ~ 196k/year.
Every case is unique. You can't measure the result of your application based on arbitrary anecdotes online.
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Re: pension contributions retroactively?
You're forgetting that also the employers pay pension contributions, which since May 1st 2017 have - at least in some cases - been the freelancer's responsibility. On average they are 17,75% in 2018.Beep_Boop wrote: ↑Fri Sep 28, 2018 6:01 pmUnless you've been making 200,000 per year* as a freelance translator, that amount for only pension contribution makes absolutely no sense. Either the information you received is inaccurate, or you (or your ex-employer) is omitting something.
* Pension contribution is 6.35%. For 25,000 to be your pension contribution for two years, you have to be making ~ 196k/year.
There are multiple variables in play, I'd suggest to consult a tax lawyer, only a professional can say for sure what applies in your particular situation. In general, if the authorities are saying you have unpaid contributions, I'd be surprised if you didn't have any.
Re: pension contributions retroactively?
Well, according to one pension insurance website the contribution is 25%, so actually over a three-year period (including the present one) I would have to fork out even more. I'm wondering whether exile in England would resolve this problem!?
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Re: pension contributions retroactively?
The combined (employer + employee) contributions are in the 25% range, depending on e.g. age. Again, for the OP, consult a lawyer, you're unlikely to get a definite answer, much less sound advice for your particular situation, here.
Re: pension contributions retroactively?
Indeed you're right. I've missed that.FinnGuyHelsinki wrote: ↑Fri Sep 28, 2018 6:06 pmYou're forgetting that also the employers pay pension contributions, which since May 1st 2017 have - at least in some cases - been the freelancer's responsibility. On average they are 17,75% in 2018.
Every case is unique. You can't measure the result of your application based on arbitrary anecdotes online.
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Re: pension contributions retroactively?
The debt will go to enforcement for collection and they will liquidate any assets you have to pay the debt.
At least as long as the UK is still an EU country, collection should be possible. Likely it's possible afterwards as well. In the UK, you can declare bankruptcy.
https://www.gov.uk/bankruptcy
In Finland you can consider debt restructuring.
https://www.kkv.fi/en/facts-and-advice/ ... ructuring/