Social security contributions

Moving Again · Post by **Moving Again** » Sun Jan 02, 2011 7:18 pm

I'm considering setting up a TMI, and am trying to calculate the various deductions from my income. Can anyone tell me how much I will pay in social security contributions? As a UK citizen, I have a European Health card, but I don't have a E101 (or is it A1 nowadays?). I understand I might have to pay 2 and a bit percent for social security. Is that about right?

One other thing - how much are the YEL contributions? I've seen something on here suggesting I only have to pay around 15% on the salary an equivalent employee would earn, or is it only compulsory to pay 15% of 6500?

Thanks in advance, and sorry but I couldn't find anything about paying for social security, only questions from people asking how much they could claim in benefits.

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tjawatts · Post by **tjawatts** » Sun Jan 02, 2011 8:16 pm

YEL is different to SOTU.

YEL
http://www.etk.fi/Page.aspx?Section=41871
21.6% of your declared income (min 8520 EUR in 2011), but 25% discount for first 48 months

SOTU is payable on salary, but as a toiminiimi you dont actually really pay yourself salary, you just declare your profit and pay taxes on that.

T

tjawatts · Post by **tjawatts** » Sun Jan 02, 2011 8:19 pm

And if you are resident in Finland you should get registered with KELA and unregister with UK social security.

T

Rosamunda · Post by **Rosamunda** » Sun Jan 02, 2011 8:50 pm

And if I remember correctly unemployment contributions are completely separate (and optional). I think filecore once gave me some info on those.

If you are in the Helsinki area, there are some (free) courses that are available explaining all this. For an absolute beginner they are quite useful (but not so useful for someone who has already been running their business for a while). There's a link in one of the big TMI threads.

You might also need to register for VAT (if you expect your revenues to exceed 8500e in the year).

Pursuivant · Post by **Pursuivant** » Sun Jan 02, 2011 8:54 pm

The EU health card is valid only 3 months. If you change residence you get into whatever country you move into system. And then you need to have the Finnish blue EU card visiting UK as you're no longer NHS... though how they keepvtrack of stuff... Got a gas bill gov?

Moving Again · Post by **Moving Again** » Sun Jan 02, 2011 10:12 pm

Pursuivant wrote:The EU health card is valid only 3 months. If you change residence you get into whatever country you move into system. And then you need to have the Finnish blue EU card visiting UK as you're no longer NHS... though how they keepvtrack of stuff... Got a gas bill gov?

From the NHS website "it's valid for up to five years" (but mine expires in August). I'm only planning to stay in Finland for this year, so do I still need to pay social security contributions here? I'm obviously not paying them in the UK at the moment, but understood I could pay when I get back, if needed, to maintain my pension rights.

Moving Again · Post by **Moving Again** » Sun Jan 02, 2011 10:20 pm

tjawatts wrote:YEL is different to SOTU.

YEL
http://www.etk.fi/Page.aspx?Section=41871
21.6% of your declared income (min 8520 EUR in 2011), but 25% discount for first 48 months

SOTU is payable on salary, but as a toiminiimi you dont actually really pay yourself salary, you just declare your profit and pay taxes on that.

T

The link mentions a minimum confirmed income of 8520 euros per year. But elsewhere confirmed income is described as the equivalent salary for an employee. Can I pay YEL on only 8250 euro, even though my income will be considerably higher? If not, who decides what the equivalent salary is?

tjawatts · Post by **tjawatts** » Sun Jan 02, 2011 10:39 pm

You can tell them how much you think your equivalent salary is, especially if you are here only one year (on a longer term basis it might not be a good idea as benefits etc are based on that). When you are temporarily resident (~1yr) here it might be different as you are probably still considered ordinarily resident in the UK so might be that taxes etc would be paid still in the UK.

T

Moving Again · Post by **Moving Again** » Mon Jan 03, 2011 7:19 am

tjawatts wrote:When you are temporarily resident (~1yr) here it might be different as you are probably still considered ordinarily resident in the UK so might be that taxes etc would be paid still in the UK.

T

No, afraid not. After being here 6 months, I have to pay Finnish tax, plus pay back taxes for the first 6 months. If that wasn't the case, I wouldn't be posting here, I'd be relaxing in my 5 star hotel, sipping champagne:)

Rosamunda · Post by **Rosamunda** » Mon Jan 03, 2011 5:50 pm

Moving Again wrote:
Pursuivant wrote:The EU health card is valid only 3 months. If you change residence you get into whatever country you move into system. And then you need to have the Finnish blue EU card visiting UK as you're no longer NHS... though how they keepvtrack of stuff... Got a gas bill gov?
From the NHS website "it's valid for up to five years" (but mine expires in August). I'm only planning to stay in Finland for this year, so do I still need to pay social security contributions here? I'm obviously not paying them in the UK at the moment, but understood I could pay when I get back, if needed, to maintain my pension rights.

I think the NHS means that your card is valid for 5 years as an EU health card while you are resident in the UK. After the five years is up you have to apply for a new card (in the old E111 days they were only valid for the duration of your holiday and you had to keep applying for a new one every time you travelled).

The EU stinks when it comes to this kind of thing. The reality of EU mobility is light years ahead of the bureaucracy.

Moving Again · Post by **Moving Again** » Mon Jan 03, 2011 10:52 pm

penelope wrote:
Moving Again wrote:
Pursuivant wrote:The EU health card is valid only 3 months. If you change residence you get into whatever country you move into system. And then you need to have the Finnish blue EU card visiting UK as you're no longer NHS... though how they keepvtrack of stuff... Got a gas bill gov?
From the NHS website "it's valid for up to five years" (but mine expires in August). I'm only planning to stay in Finland for this year, so do I still need to pay social security contributions here? I'm obviously not paying them in the UK at the moment, but understood I could pay when I get back, if needed, to maintain my pension rights.
I think the NHS means that your card is valid for 5 years as an EU health card while you are resident in the UK. After the five years is up you have to apply for a new card (in the old E111 days they were only valid for the duration of your holiday and you had to keep applying for a new one every time you travelled).

The EU stinks when it comes to this kind of thing. The reality of EU mobility is light years ahead of the bureaucracy.

Yes, you're probably right about it only being valid while I'm still UK resident.

Any idea of the amount of social security contributions for a Toiminimi?

tjawatts · Post by **tjawatts** » Mon Jan 03, 2011 11:25 pm

It is either in your tax or your YEL, you dont pay social security separately. Get yourself a signed up to pay taxes (when you register your tmi) and that should tell you how much you have to pay. You can get an idea using the online caclulator.

tax.fi

T

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