This year 2018 comes with novelties in the regulation of the contribution of self-employed to social security.
The amendments concern, in particular, the increase in the contribution base of the self-employed. All measures introduced by the Law that was approved in 2017 on the Reform of Self-Employment.
new Self-Employed Law amends,
among other rules, the General Regulations on Social Security Contributions, of 1995. Below, we expose the most significant changes to clear all your doubts.
All about the changes in the contribution bases of the self-employed contribution to the Social Security for 2018
The most relevant difference with respect to the previous regulation is given by the number of times that the extension of the maximum contribution bases can be requested in the course of each calendar year, which goes from two, to four times.
Therefore, those interested who consider an increase in the contribution base of self-employed,will have twice as many options to do so.
If you plan to start making an improvement in the amount to receive when retirement arrives, there is a simple way to achieve it, as long as you meet the required conditions.
Clarifying doubts: What is the self-employed quota and the contribution base?
Before proceeding, we clarify the concepts of “self-employed quota” and “contribution base”, thinking especially of those who are starting their journey in this peculiar Social Security regime.
⇒ SELF-EMPLOYED QUOTA
The self-employed quota is the monthly amount paid by the worker to the General Treasury of the Social Security to face the different coverages. This is a percentage amount calculated on the so-called contribution basis.
⇒ CONTRIBUTION BASE
For its part, the contribution base refers to the gross monthly remuneration obtained with the work performed.
Well, the Government establishes each year, through the Law of General State Budgets, the minimum and maximum limits that this contribution base determined by the self-employed may not exceed.
Specifically, the minimum base as of January 1, 2018 is set at 919.80 euros and the maximum at 3,751.20 euros.
As we anticipated, within the minimum and maximum margins mentioned, the Spanish self-employed worker
will be able to change the initially determined contribution base. This is where the main novelty appears, and that is that this change in the contribution base, can be done up to four times each year.
Of course, it is necessary to make this change as provided for in the new article 43 bis added to the articles of the aforementioned Contribution Regulation, respecting a series of requirements.
Requirements for the request for change in the contribution base of the self-employed in 2018
Certain time periods are set for submitting the application, depending on the date on which the change is to take effect. Concretely:
- Presentation from January 1 to March 31, to take effect from April 1.
- Presentation from April 1 to June 30, to take effect from July 1.
- Presentation from July 1 to September 30, to take effect from October 1.
- Presentation from October 1 to December 31, to take effect from January 1 of the following year.
The application to increase the quota of self-employed and expand the base of social contributions can be submitted by the interested party in two ways:
- Face-to-face,in any Administration of the General Treasury of the Social Security.
- Telematics,through the Electronic Office of the Social Security,provided that you have a digital certificate, or username and password, failing that.
A different issue is the increase in the quota of self-employed in 2018,which will affect those self-employed who are directors of companies, even those of a single-person nature.
With the new regulation they will see their quota increased by 14 euros per month or, what is the same, 168 euros per year; which represents an increase of 4%.
Who can request an increase in the self-employed contribution base?
This request for an increase in the self-employed contribution base can be made by all workers who have this special condition.
It is essential for your request that they are registered in the Special Social Security Regime as self-employed or self-employed workers,and as long as they are not already contributing for any of the maximum bases established.
However, those self-employed workers who are contributing for any of the maximum bases may request that their contribution base be automatically increased by the same percentage in which these maximum bases are increased.
Even self-employed workers who are not contributing for any of the maximum bases may request that their contribution base experience an automatic increase in the same percentage in which the maximum contribution bases are increased.
In any case, the new regulation expressly establishes that, in no way, the chosen contribution base may exceed the maximum limit established in each case for the worker.
If you have any questions, as always, you can consult with our AYCE Laborytax advisors.