Payment as TMI or sole trader

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Vahid8080
Posts: 27
Joined: Mon Oct 21, 2019 7:05 pm

Payment as TMI or sole trader

Post by Vahid8080 » Thu Oct 15, 2020 6:18 pm

Hi

Can I pay my own salary in TMI or sole trader from my own account/saving?

If the period of payment be between 1 to 2 years, then does it make problem?

I want to work as TMI in IT, and during my product development I want to pay my own salary by my own saving.

Does anyone have similar experiences ?

Thanks



Payment as TMI or sole trader

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betelgeuse
Posts: 3620
Joined: Thu Aug 29, 2013 1:24 am

Re: Payment as TMI or sole trader

Post by betelgeuse » Thu Oct 15, 2020 7:51 pm

Vahid8080 wrote:
Thu Oct 15, 2020 6:18 pm
Hi

Can I pay my own salary in TMI or sole trader from my own account/saving?

If the period of payment be between 1 to 2 years, then does it make problem?

I want to work as TMI in IT, and during my product development I want to pay my own salary by my own saving.

Does anyone have similar experiences ?

Thanks
It’s not legally possible for sole traders to pay themselves a salary. Why would you want to pay taxes like that on your savings any way?

Vahid8080
Posts: 27
Joined: Mon Oct 21, 2019 7:05 pm

Re: Payment as TMI or sole trader

Post by Vahid8080 » Fri Oct 16, 2020 12:59 am

Hi
Since my product development can take time.
During period I dont have my product or I am testing it, i should pay my salary from my own saving.

So with TMI I can not pay my own salary?
Should I have OY company to be able to pay my own salary?

betelgeuse
Posts: 3620
Joined: Thu Aug 29, 2013 1:24 am

Re: Payment as TMI or sole trader

Post by betelgeuse » Fri Oct 16, 2020 1:55 am

Vahid8080 wrote:
Fri Oct 16, 2020 12:59 am
Since my product development can take time.
During period I dont have my product or I am testing it, i should pay my salary from my own saving.
Still doesn’t explain why you want to pay taxes on it instead of, for example, using it all on expenses.
Vahid8080 wrote:
Fri Oct 16, 2020 12:59 am
So with TMI I can not pay my own salary?
The answer doesn’t change by asking again.
Vahid8080 wrote:
Fri Oct 16, 2020 12:59 am
Should I have OY company to be able to pay my own salary?
With Oy it’s possible.

heretostay
Posts: 440
Joined: Sat Apr 08, 2017 12:54 pm

Re: Payment as TMI or sole trader

Post by heretostay » Fri Oct 16, 2020 5:42 am

Yes, with Oy you can pay yourself a salary and Migri accepts that as income as long as the business is legit.

betelgeuse
Posts: 3620
Joined: Thu Aug 29, 2013 1:24 am

Re: Payment as TMI or sole trader

Post by betelgeuse » Fri Oct 16, 2020 11:10 am

heretostay wrote:
Fri Oct 16, 2020 5:42 am
Yes, with Oy you can pay yourself a salary and Migri accepts that as income as long as the business is legit.
It would only be relevant for Migri if someone else is the main owner. Otherwise entrepreneur rules apply.

heretostay
Posts: 440
Joined: Sat Apr 08, 2017 12:54 pm

Re: Payment as TMI or sole trader

Post by heretostay » Fri Oct 16, 2020 11:22 am

I guess it changed since 4 years ago when I last had to apply. At that time, you were considered the employee even if you own all the shares like I do.

betelgeuse
Posts: 3620
Joined: Thu Aug 29, 2013 1:24 am

Re: Payment as TMI or sole trader

Post by betelgeuse » Fri Oct 16, 2020 11:28 am

heretostay wrote:
Fri Oct 16, 2020 11:22 am
I guess it changed since 4 years ago when I last had to apply. At that time, you were considered the employee even if you own all the shares like I do.
Yeah those rules have changed.

Vahid8080
Posts: 27
Joined: Mon Oct 21, 2019 7:05 pm

Re: Payment as TMI or sole trader

Post by Vahid8080 » Sun Oct 18, 2020 5:23 pm

Thanks everyone for your kind response.

My understanding is that

1-By OY company o can pay myself and it considers as income by Migri.
2-Even if I be the 100% shareholder, I am still considered as employee in my own company.

My company product is going to be a mobile app.
Is it enough I show my product to migri to prove my company has a real output?
Or I need something more?
My concern is making real sensible revenue takes 1 to 2 years.
So maybe in that period I pay myself from company capital investment or possible funds.

Thanks for your kind response.

betelgeuse
Posts: 3620
Joined: Thu Aug 29, 2013 1:24 am

Re: Payment as TMI or sole trader

Post by betelgeuse » Sun Oct 18, 2020 6:16 pm

Vahid8080 wrote:
Sun Oct 18, 2020 5:23 pm
My understanding is that

1-By OY company o can pay myself and it considers as income by Migri.
2-Even if I be the 100% shareholder, I am still considered as employee in my own company.
Your understanding is incorrect.
Vahid8080 wrote:
Sun Oct 18, 2020 5:23 pm
My company product is going to be a mobile app.
Is it enough I show my product to migri to prove my company has a real output?
Or I need something more?
My concern is making real sensible revenue takes 1 to 2 years.
So maybe in that period I pay myself from company capital investment or possible funds.
The permit type you should look into is:

https://migri.fi/en/start-up-entrepreneur

Vahid8080
Posts: 27
Joined: Mon Oct 21, 2019 7:05 pm

Re: Payment as TMI or sole trader

Post by Vahid8080 » Sun Oct 18, 2020 6:23 pm

Ooops my bad.

Which part is incorrect?


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