With the aim of facilitating the hiring of family members by a company or a self-employed worker, the RETA (Special Scheme for Self-Employed Workers) has the figure of the self-employed collaborator,which allows the hiring of a direct relative by the main self-employed.
A figure that offers multiple advantages and is shown as the main option when it comes to including a family member inthe template, for which a series of essential requirements must be met. From AYCE Laborytax we are going to tell you what are the steps that must be followed to benefit from this modality, as well as the main advantages it offers.
What is a self-employed collaborator?
As we have told previously, a self-employed collaborator consists of a direct relative of the main self-employed worker, who lives and works with him in a collaborative way. But the reality is that any family member cannot register as a self-employed collaborator, since for this it is essential to comply with a series of essential requirements.
Requirements to register as a self-employed collaborator
In order for a person to be registered as a self-employed collaborator, it is essential that there is a relationship by consanguinity or affinity of up to the second degree between the main self-employed and the family member, as well as that the family member is not working as an employee.
- Direct familymember : spouse or relatives of the first degree (children, parents, in-laws) or of the second degree (siblings, grandchildren, grandparents or brothers-in-law) by consanguinity, affinity or adoption.
- Obligation to work on a regular basis:it is not possible to register as a self-employed collaborator for a specific collaboration.
- Live in the same home or be dependent on the main self-employed.
- Not being self-employed
- Minimum age of 18 years.
Since 2015, with the entry into force of the new Law on Development, the possibility of a domestic partnership being able to benefit from the modality of self-employed collaborator was repealed.
Main advantages of being a self-employed collaborator
The possibility of registering as a collaborative self-employed worker offers multiple advantages, both to the family member and to the main self-employed, especially when launching a new business.
The first of all, is that to register as a collaborative freelancer it is not necessary to go to the Treasury,which translates into a significant saving of both time and paperwork, greatly facilitating all the procedures.
During the first 18 months, self-employed collaborators enjoy a bonus of up to 50% in the self-employed quota,as well as 25% during the following six months.
Another of the main advantages that must be highlighted, is that the self-employed collaborative are totally free to present the corresponding quarterly vat and personal income tax returns,since this obligation will fall directly on the self-employed owner. The only obligation will be to file the INCOME TAX RETURN, like any other worker.
On the contrary, it must be said that collaborative freelancers cannot enjoy the flat rate for new freelancers of 50 euros.
How to register as a self-employed collaborator?
Registering as a self-employed collaborator is much easier than for any other self-employed worker, since the only thing you will have to do is register as a collaborating family member in the Social Security. It is not necessary to register with the Treasury.
The only thing to do is to fill in form TA0521/2 and present it at a Social Security office,along with the DNI, the family book and a copy of the registration in the Treasury of the self-employed holder.
Tax obligations of the self-employed collaborative and the self-employed owner
Once we have seen what the requirements are, as well as the main advantages offered by the figure of the collaborative self-employed, we will focus on the tax obligations that both he and the self-employed owner must meet.
Tax obligations of the self-employed collaborator
The tax obligations of self-employed collaborators are different from those of conventional self-employed, since while for the Social Security they belong to the RETA, for the Tax Agency they are considered as employees.
This means that the self-employed collaborator receives a monthly salary,as well as that his activity is taxed as a work performance, and not as an economic activity. Therefore, collaboratives should not submit quarterly VAT and Personal Income Tax returns.
It must also be said that since Social Security does consider the self-employed as conventional self-employed workers, they will be able to enjoy unemployment benefit in the same way as a common self-employed worker.
Tax obligations of the self-employed owner
The obligations that the self-employed owner has with respect to the collaborative, are the same as with any employee:
- Take care of the social security contributions of the self-employed collaborator.
- Pay the salary of the collaborator.
- Account for these expenses as deductible expenses for your business on your tax returns. An advantage to keep in mind for the self-employed holder.
The figure of the self-employed collaborator is very interesting for those companies or self-employed workers who want to hire a family member. With multiple advantages for both, in case you have any doubts, our team of tax advisors from AYCE Laborytax will offer you all the information and advice you need.