Is a dinner with a potential client a deductible expense? What about if you decide to give a present to your employees for Christmas or other holidays, or you host a company dinner at the end of your work season?
In Spanish they use the expression “falso autonomo” to refer to the person that is registered as self-employed but in all practical terms he is actually behaving as an employee of “his client”. This is illegal and penalized as a fraud by the Social Security. What are the options?
A commercial contract establishes the terms of any legal business transaction between two companies ( including Autonomos). When preparing a commercial contract, make sure that it includes at least the points listed here.
As a self-employed person, you will have to contribute to the Social Security every month from day one. Your autonomo’s social security contribution does not dependent on your revenues but on a theoretical income that you can choose within certain parameters. Learn all about it.
Make sure that you are doing your invoices with the correct withholding (Retention) percentage. Find here a table with the most frequent retention types for self employed and small business.