Toiminimi for less that 8k per year

[mpjacko]

Thanks for all the advice.

Just to clarify, I am proof-reading for a university department who can also get the proof-reading done from their university's language department. The language department charges 15euro per page and there is no tax as it's between department. I understood it that the department doesn't sell any thing so would have to pay the vat (i.e have nothing to offset the tax). If that is the case and the customer pays tax then my rate would be 15euro + 3.6 = 18.6e per page compared to 15e from the language department. So if i was to do this, then it would be cheaper for them to use the language department. This is where I have my problem. I want to make as much as possible but be competitive in price at the same time.

I think the co-op taxcard or freelance whatever(description is deceptive) is probably geared up to be the best over all coin into pocket solution.
Or start a TMi and work until you earn 8500 euro/year, i think its about the same except you get to have more choices with the TMi.

Or if your good enough and the pages keep coming then register for VAT with the new TMi and look at this equation, 12euro+2.88 VAT = €14.88.
Build up you company with years of history so you can use that history to be infront of your competitor, just like every other good business does.

Thanks for the advice

[LostOzzie]

#6 If your toiminimi's annual revenue is less than 8500e you are entitled to a full VAT refund (if you chose to register for VAT). If your business has billed over 8500e but less than 22500e there is a lower-limit VAT relief scheme whereby you can claim most of it back:

Does anyone know more about this? I couldn't find anything on it in English on vero.fi. If this is true, it's basically an extra 24% in your pocket if you don't bill over 8500€.

[betelgeuse]

#6 If your toiminimi's annual revenue is less than 8500e you are entitled to a full VAT refund (if you chose to register for VAT). If your business has billed over 8500e but less than 22500e there is a lower-limit VAT relief scheme whereby you can claim most of it back:

Does anyone know more about this? I couldn't find anything on it in English on vero.fi.

The relevant guide is not translated to English:

http://www.vero.fi/fi-FI/Syventavat_ver ... nus(27962)

However, you will find a translation of the Value Added Tax Act (may not include all amendments here):

https://www.finlex.fi/fi/laki/kaannokse ... 931501.pdf

If this is true, it's basically an extra 24% in your pocket if you don't bill over 8500€.

Correct.

[LostOzzie]

The relevant guide is not translated to English:

http://www.vero.fi/fi-FI/Syventavat_ver ... nus(27962)

However, you will find a translation of the Value Added Tax Act (may not include all amendments here):

https://www.finlex.fi/fi/laki/kaannokse ... 931501.pdf

If this is true, it's basically an extra 24% in your pocket if you don't bill over 8500€.

Correct.

Thanks SO much for that link. I think this sums it up best:

Jos liikevaihto on enintään 8 500 euroa, yritys saa huojennuksena koko tilikaudelta tilitettävän arvonlisäveron. Jos yrityksen arvonlisäveron ilmoitusjakso on kalenterivuosi, huojennus tarkoittaa käytännössä, että arvonlisäveroa ei tarvitse maksaa.

If revenue is at most 8500€, the business can apply for VAT tax relief for the entire bookkeeping period. If the business has an annual periodic reporting period, this in practice means that it is not necessary to pay VAT.

Pretty crazy that the government isn't trying to get their hands on that and just lets you have it. Quite surprising!

[mpjacko]

They take enough of it (tax) from other places it would be good to have some extra money in my back pocket.

I only wish there was an easier way of setting up your own company.

[betelgeuse]

They take enough of it (tax) from other places it would be good to have some extra money in my back pocket.

I only wish there was an easier way of setting up your own company.

Can you elaborate? Establishing as sole trader (yksityinen elinkeinonharjoittaja) or limited company (osakeyhtiö) is straightforward. There's an online service for the latter. Granted it can be intimidating to figure out alone.

[mpjacko]

They take enough of it (tax) from other places it would be good to have some extra money in my back pocket.

I only wish there was an easier way of setting up your own company.

Can you elaborate? Establishing as sole trader (yksityinen elinkeinonharjoittaja) or limited company (osakeyhtiö) is straightforward. There's an online service for the latter. Granted it can be intimidating to figure out alone.

I've been tempted to create my on company as a way to receive my proof-reading money as i can' believe how little I get for the amount of money I charge (i use eezy.fi). When i quizzed people who have their own company, i get the impression its a difficult process but at the same time i must admit ive not been searching the web. So it would be interesting to know if there was a place which has the info in English where i could find all i need to know.

Before I set up the company, I would like to see what the advantages vs disadvantage of both having a company and using eezy.

Is there anywhere which has a list of the ticks you can do when having a company i.e like the no vat for under 8.5k or charging rent to your company for the use of a room in your house etc?

[Upphew]

I've been tempted to create my on company as a way to receive my proof-reading money as i can' believe how little I get for the amount of money I charge (i use eezy.fi).

Eezy seems to cost 7%. So that is the amount you would get in your hand if you started your own company?

[betelgeuse]

They take enough of it (tax) from other places it would be good to have some extra money in my back pocket.

I only wish there was an easier way of setting up your own company.

Can you elaborate? Establishing as sole trader (yksityinen elinkeinonharjoittaja) or limited company (osakeyhtiö) is straightforward. There's an online service for the latter. Granted it can be intimidating to figure out alone.

I've been tempted to create my on company as a way to receive my proof-reading money as i can' believe how little I get for the amount of money I charge (i use eezy.fi). When i quizzed people who have their own company, i get the impression its a difficult process but at the same time i must admit ive not been searching the web. So it would be interesting to know if there was a place which has the info in English where i could find all i need to know.

I haven't come across a good centralized resource. Setting up the company is not the difficult process. Handling day to day operations according to law is the more troublesome part. A foreigner pretty much needs an accountant in the beginning to learn things. For low income this will negate the benefits from value added tax returns.

Before I set up the company, I would like to see what the advantages vs disadvantage of both having a company and using eezy.

With eezy it's simple but you lose on tax optimization opportunities.

Is there anywhere which has a list of the ticks you can do when having a company i.e like the no vat for under 8.5k or charging rent to your company for the use of a room in your house etc?

Don't know. An accountant would probably go through these with you.

I've been tempted to create my on company as a way to receive my proof-reading money as i can' believe how little I get for the amount of money I charge (i use eezy.fi).

Eezy seems to cost 7%. So that is the amount you would get in your hand if you started your own company?

If this was true, why would anyone start their own company and have the trouble of being responsible for the paper work? With eezy you can't for example do the following:

• use capital income tax
• value added support for low income (alarajahuojennus)
• optimize pension contributions

[Rosamunda]

Pretty crazy that the government isn't trying to get their hands on that and just lets you have it. Quite surprising!

You're joking?

In the UK - for example - VAT kicks in at an annual turnover of around 113,000€ (ie £82,000). So any business with an annual turnover under that threshold does not even have to register for VAT. Above the £82K threshold, UK companies with a turnover under £150,000 can use the flat rate scheme which hugely simplifies accounting for small businesses.

In this respect, Finland seems to have little or no interest in encouraging small businesses and the self-employed. It also explains why plumbers, painters & decorators, proof-readers, gardeners, hairdressers etc etc etc are so much cheaper in the UK.

By the way, I did post a reminder about the VAT refund deadline last March. viewtopic.php?f=37&t=88346

[jonas_man]

Hi,

I have been reading your posts but i can´t understand 3 things:

1. I created a tomini account to send invoices under 8k, was it a good decision, or should i have kept sending invoices in my name?

2. Since i have the company and im also a normal worker with a tax card. What is the implication of this? From my simulations it increases my taxes a lot.

3.To lower the taxes i´m trying to add expenses to my company (i had some really), so what can i add as an expense (ex. flights, rents, transfer fees from Holvi) ?

Some info: I had one project only, which i already got paid. I´m also working for a company and i have a tax card with them.

Joao

[cors187]

Hi,



1. I created a tomini account to send invoices under 8k, was it a good decision, or should i have kept sending invoices in my name?

Being a legitimate business seems to always work

.

[jonas_man]

Hi,



1. I created a tomini account to send invoices under 8k, was it a good decision, or should i have kept sending invoices in my name?

Being a legitimate business seems to always work

.

Someone said you can send invoices in your name and just pay the tax with taxcard in this thread. It is not my objective to be iligal...

[betelgeuse]

1. I created a tomini account to send invoices under 8k, was it a good decision, or should i have kept sending invoices in my name?

The question doesn't make sense. Toiminimi means business name. When operating as a private trader you are the legal entity sending the invoices.

2. Since i have the company and im also a normal worker with a tax card. What is the implication of this? From my simulations it increases my taxes a lot.

Finland has progressive taxation so your tax rate goes up when you have more income. Primary implication that comes to mind is handling of unemployment benefits (selecting correct fund and knowing the rules on when you are considered an entrepreneur).

3.To lower the taxes i´m trying to add expenses to my company (i had some really), so what can i add as an expense (ex. flights, rents, transfer fees from Holvi) ?

A proper answer would be very long. The general idea is that you add everything that is related to generating revenue / operating the business. You can't fully deduct things that are also used for personal purposes (for example rent for the place where you live).

[jonas_man]

To clarify 1. Someone said before here that you don't need a business id to send an invoice. You can just go to vero print an invoice , fill it and send that. Add the value to your normal tax card and that's it.