Tax technicians belonging to the Hacienda have recently released a report  in which they express suspicion for self-employed persons (Autonomos) who report earnings of less than 12,000€ per year.  What can this mean for you?

They claim that this low declaration of incomes , which is the case of about 1 million autonomos in Spain, may be an indication that they are not reporting all their revenues. The report also expresses surprise that some autonomos with one employee declare less incomes than their own employee.

Though the Association of Autonomo Workers ( ATA) have objected to these conclusions, stating that the situation encountered by these autonomos are not as the report says, this puts under alert to all Autonomos declaring less that 12,000€. 

Will they now become a target of the tax inspectors? Will autonomos with little income declaration be at risk of getting a hard review of their books?

This resent issue provides an extra reason to make sure that our books are neat and every transaction is according to the rules. 

This revealing of the official disbelieve should also put under alert to businesses which declare loss for long periods. They will need to make sure that they can justify why and how the business is run on  losses .

In LimitConsulting.com you find abundant material that assists you in your efforts to comply with the tax rules. For instance, our section “Expenses difficult to justify” will give you insight on the requisites to make expenses such as the purchase or a car, or business trips and dinners with clients, according to the rule. You will also find a list of type of expenses that you can include and those which you can’t.

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