hiring vs subcontracting? help needed

[ahkera]

Hello

Which one suits a company. Either hiring or subcontracting in finland.

Lets say I got a contract for some basic work which doesnt require much skill.
If i hire someone to do the job i have to take accident insurance, deduct tax at source, collect vat, pay part of social security + holidays etc etc.

But if the other perdon agrees to register a tmi and become my subcontractor, i only have to collect vat, and then he have to pay his own taxes + vat etc.

Lets assume that this sibcontract work dont exceede 11500€ per year.

Which one will be a win win for both of us?

[cors187]

Theres no win win in Finland.

Employee
If your a TMI and already employ one person then adding a second is not such a big deal because you have the system that can pay salary ,their employee contributions,their tax and your employer contributions.

Contractor
If you dont have this system in place then contracting them ( as registered TMI or OY or other business ID) to do the work is the easy way.
They will give you an invoice with the price+VAT included.

Hiring
Its like rent-a-worker using a hire company

[rinso]

Which one suits a company. Either hiring or subcontracting in finland.

It totally depends on the situation.
How secure is your portfolio? Is it seasonal? How much "love" for the company do you want from the workers? Is their a future for the workers in the company?
Subcontracting is not cheaper than hiring but it is more flexible and less fuss.

[betelgeuse]

Hello

Which one suits a company. Either hiring or subcontracting in finland.

Lets say I got a contract for some basic work which doesnt require much skill.
If i hire someone to do the job i have to take accident insurance, deduct tax at source, collect vat, pay part of social security + holidays etc etc.

But if the other perdon agrees to register a tmi and become my subcontractor, i only have to collect vat, and then he have to pay his own taxes + vat etc.

Lets assume that this sibcontract work dont exceede 11500€ per year.

Which one will be a win win for both of us?

If the 11500 is the only income for the subcontractor as TMI, then that option has the benefit of arvonlisäveron alarajahuojennus. Basically the state will allow the subcontractor to keep some of the value added tax that you can still deduct fully. However, there will be at least a cost of time to run the paperwork for the subcontracting entity.

https://www.vero.fi/fi-FI/Yritys_ja_yht ... nus(11826)

[Upphew]

Hello

Which one suits a company. Either hiring or subcontracting in finland.

Lets say I got a contract for some basic work which doesnt require much skill.
If i hire someone to do the job i have to take accident insurance, deduct tax at source, collect vat, pay part of social security + holidays etc etc.

But if the other perdon agrees to register a tmi and become my subcontractor, i only have to collect vat, and then he have to pay his own taxes + vat etc.

Lets assume that this sibcontract work dont exceede 11500€ per year.

Which one will be a win win for both of us?

If the 11500 is the only income for the subcontractor as TMI, then that option has the benefit of arvonlisäveron alarajahuojennus. Basically the state will allow the subcontractor to keep some of the value added tax that you can still deduct fully. However, there will be at least a cost of time to run the paperwork for the subcontracting entity.

https://www.vero.fi/fi-FI/Yritys_ja_yht ... nus(11826)

Then there is this: http://vero.fi/en-US/Precise_informatio ... 2815020%29