Tenerife forum

[Helena and Shiel]

Hi everyone, cant find the answers i need, and I promise I have read loads and loads of threads!
What is the position regarding self employed.....do you fill in a yearly tax return like here in the uk? and if yes, then do you have taxable allowances and pay tax on the net profit?
What is the rate of tax i.e - % of net profit?
And finally I have read that social payments are around 238 euro per month is this the same for everyone, self employed etc or is it diferent for a married couple?
238 euro a month seems a lot if we are both paying it! and then our tax on top?
Sorry if this is already covered I did follow a link from one thread to the social security website and it wasn't much help......so if any self employed people are reading this I would really appreciate it if you could fill me in!!

H x

[jenny]

Yes, self-employed people do a yearly tax return. The system is different here.

Social security payments vary. Remember also every 3 months you need to pay the VAT and Income Tax amounts. These will be different depending on which system you decide to choose (Modulos or Direct estimation system).

It is best to get an accountant to help you with everything and I highly recommend B & G Accountants who speak fluent English and are honest (many here are not - be warned!)
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[Helena and Shiel]

Thank you again Jenny, it seems to be quite a confusing area, I have been in contact with an agent based in tenerife, and he had said if we worked through him, the social would be 130euro per month but if we did it self employed it would be 255euro?? The accountant sounds good.....its hard enough getting a good one here!
We just want to have the full picture so there are no unexpected surprises!!

Thank you Hx

[jenny]

If you are employed I believe the social security payments are less (and your employer should pay them). Talk to the accountant as he will be able to answer ALL your questions on this sort of thing. Several of us on the forum use him. If there is anything they don't know, they will admit they don't know and go and find our for you instead of making something up, as so many others do.
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I will make this day a happy one for I alone can determine what kind of day it will be.

[karlb]

[Helena and Shiel]

Hi guys, I would be interested in speaking to the accountant that Jenny had mentioned, if you could let us know his number it would be much appreciated.
Karlb - the 130euro was the monthly payment he quoted for social and his fee. (he would deal with our tax etc????) doesn't really add up that it would be cheaper.
He said it would cost us 255euro should we decide to go self employed, and then we would be responsible for our own tax return etc.
We defo want to be 100% legal, so I think we really need to speak to the accounant, and take it from there - we contacted the agent to find out about the opportunities for tribute work, but I think the best route to go would be to get our own work. We work for 6 agents in the uk, and they fill our diary without us having to worry about it, but our fees here are really good, dont think we could really afford to pay an agent over there!
Thanks for your help guys!

H x

[Juum]

A quick search in google for his company name, brings up a list of contact details for him. http://www.sun4free.com/directory/tenerifebusiness437.htm

[strippersrus]

[Helena and Shiel]

Thanks guys, once again your advice has been invaluable

H x

[rob]

The amount of the 'social' payments varies with each profession. Although it may seem a lot of money its still cheaper than being self employed in the UK.
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[Helena and Shiel]

Thanks Rob - we are just trying to get an idea of what our outgoings would be, and therefore what sort of income we would need to achieve. We plan to bring enough cash to live on for around 10 months plus enough to get us set up initially, as we dont want to start using up our equity from our house to live on. Hopefully that should be long enough to get ourselves a few gigs a week each!

H x

[rob]

Enough cash to live on for ten months? Most people only bring enough for ten days!!! You should breeze it.
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[Helena and Shiel]

Rob thank you, I am glad to hear that, I have been stressing about how much we need to bring, the more we need , the longer we have to stay here in the rain!!, and more importantly Cora's arthritis would be getting worse because of the cold. If 10 months living expenses is enough then we can move in july 09, as planned, during the school holidays, so that is excelent news.
Need to get saving hard now, Shiel has stopped smoking, and is "socialising" less and as I dont have any bad habits I am just making sure he doesn't cheat......it will all be worth it it the end, as I keep telling him when he wants a ciggy!

Cheers Rob!!

H x