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ELTAF

ELTAF. Compulsory contributions Being a psuedo-employee (Scheinselbstständigkeit) Invoicing Expenses Flat rates So-called „special“ expenses Income Tax Charging VAT (Mehrwertsteuer) Putting a contract together Dealing with late bills/unpaid invoices.

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ELTAF

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  1. ELTAF

  2. Compulsory contributions • Being a psuedo-employee (Scheinselbstständigkeit) • Invoicing • Expenses • Flat rates • So-called „special“ expenses • Income Tax • Charging VAT (Mehrwertsteuer) • Putting a contract together • Dealing with late bills/unpaid invoices ELTAF Red Tape Talk

  3. Versicherungspflichtig sind selbständig tätige (§ 2 SGB VI Selbständig Tätige) • Lehrer und Erzieher, die im Zusammenhang mit ihrer selbständigen Tätigkeit keinen versicherungspflichtigen Arbeitnehmer beschäftigen • Pflegepersonen, die in der Kranken-, Wochen-, Säuglings- oder Kinderpflege tätig sind und im Zusammenhang mit ihrer selbständigen Tätigkeit keinen versicherungs-pflichtigen Arbeitnehmer beschäftigen • Hebammen und Entbindungspfleger • Seelotsen der Reviere im Sinne des Gesetzes über das Seelotswesen... ELTAF Red Tape Talk

  4. Compulsory pension contributions • Where/Who do I have to pay? • How much do I have to pay? • What about back payments? • Could I be caught? • Can I get my money back? ELTAF Red Tape Talk

  5. Ursula von der Leyen‘s Plans Compulsory pension insurance for all freelancers? When? How much? Yes!!! From 2013 Depends on your age and sex ELTAF Red Tape Talk

  6. To ensure you have the minimum pension of €660 a month you will have to pay approx: Females 30-35 €139-€177 36-40 €177-€232 41-45 €232-€314 46-50 €314-€449 Source: TRAINERVersorgung e.V., www.trainerversorgung.de Males 30-35 €116-€164 36-40 €164-€213 41-45 €213-€288 46-50 €288-€410 ELTAF Red Tape Talk

  7. What does Scheinselbständigkeit mean? • Can a freelance English teacher be classified as being scheinselbständig? ELTAF Red Tape Talk

  8. Other compulsory insurances • Health insurance (Krankenversicherung) • Nursing care insurance (Pflegeversicherung) ELTAF Red Tape Talk

  9. As a freelancer you normally have to insure yourself with a private health insurance scheme, but... if you had previously been paying in to an Ersatzkasse, you can opt to remain in (after 6/12 months as an employee???) if you have been paying into a public health scheme in an another EU country and apply to join an Ersatzkasse on your arrival here if you are married and your spouse‘s health insurance covers you. NB. This is only possible if your income is less than €365 a month. ELTAF Red Tape Talk

  10. What‘s the difference between private and public health insurance? Can I take out an expat health insurance scheme? Could I run into trouble with the authorities if I‘m not insured? Will a private health insurance company accept me if I already have a chronic condition, e.g. asthma, diabetes, hypertension, etc? What would happen if my spouse stopped working, e.g. to look after the children? Do all health insurance schemes cover you in the EU and should I include world cover if I often travel outside the EU? ELTAF Red Tape Talk

  11. Should-have insurances? • Liability insurance (Haftpflichtversicherung) • Personal accident insurance (Unfallversicherung) • Additional dental care insurance, etc. (Zahnzusatzversicherung) ELTAF Red Tape Talk

  12. „...remember a billion dollars isn‘t what it used to be.“ Jean Paul Getty Invoicing • What information do you have to include on every invoice you write? ELTAF Red Tape Talk

  13. Invoicing ELTAF Red Tape Talk

  14. Getting a court order to pay (Mahnbescheid) To get a Mahnbescheid from your Amtsgerichtyou have to fill out a form and attach copies of the invoice (together with any reminders you’ve sent) and hand it all in to the Amtsgericht. This costs money, but the school will eventually have to foot the bill for the costs you incur there.Another alternative is to put the matter into the hands of a lawyer. This also costs money - and a bit more money than the do-it-yourself Mahnbescheid, but again, unless the school is insolvent, all your costs will be reimbursed. You can now do this online: www.mahngerichte.de/onlineverfahren/ ELTAF Red Tape Talk

  15. Expenses • Costs of an office • Office equipment, furniture, etc. • Stationery • Travel expenses • Course books, etc. • Telephone, fax, etc. • Postage • Bank charges • Accountant Continued... ELTAF Red Tape Talk

  16. Expenses(continued) • Teacher training courses • Membership fees to MELTA, IATEFL, etc. • Work-related conferences • Your car, motorbike and/or bicycle • Being away from home longer than eight hours • So-called ‚special‘ expenses ELTAF Red Tape Talk

  17. Low value assets (geringwertige Wirtschaftsgüter, GWG) • Expenses for things costing ≤€410 net can either be set off immediately or you can put all expenses costing >€150 and <€1,000 net in a pot and write them off at 20% a year for 5 years. ELTAF Red Tape Talk

  18. Other assets Goods costing more than €410 (or €1,000 depending on which system you opt for) have to be written off over different periods of time. ELTAF Red Tape Talk

  19. How long does it take to write these things off? • PC • Car • Office furniture • CD Player • Standard software • Bicycle • Fax • Flag pole ELTAF Red Tape Talk

  20. PC = 3 years • Car = 6 years • Office furniture = 17 years • CD Player = 7 years • Standard software = 3 years • Bicycle = 7 years • Fax = 6 years • Flag pole = 10 years ELTAF Red Tape Talk

  21. Flat rates for travel • by car, €0.30 per km • by motorbike or scooter, €0.13 per km • by moped, €0.08 per km • by bike, €0.05 per km ELTAF Red Tape Talk

  22. Flat rates for being away from home • Less than 8 hours, €0.00 • More than 8, but less than 14 hours, €6.00 • More than 14, but less than 24 hours, €12.00 • More than 24 hours, €24.00 ELTAF Red Tape Talk

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  25. Flat rates for being on business outside Germany Source: http://www.steuer-schutzbrief.de/steuertipp-rubriken/steuer-tipps/artikel/tabelle-reisekosten-im-ausland-pauschalen-erklaerungen-alle-laender.html ELTAF Red Tape Talk

  26. Special Expenses (Sonderbetriebsausgaben) • Pension contributions • Health insurance There are limits as to how much you can set off and these seem to vary from year to year (as does what you can set off, e.g. in 2009 you could set off nursing care insurance and liability insurance, but you can‘t now). ELTAF Red Tape Talk

  27. Income tax (Einkommensteuer) ELTAF Red Tape Talk

  28. Charging VAT (Mehrwertsteuer) • You don‘t have to (and shouldn‘t) charge MwSt unless your turnover goes above €17,500. • The tax office will not inform you that you should start charging MwSt on your invoices. • If you put MwSt on one bill, you have to charge it on all your bills for that year and pass any MwSt you have collected minus the MwSt you pay to the tax office. ELTAF Red Tape Talk

  29. Are some institutes/organisations released from paying/charging Umsatzsteuer? • Yes, e.g. VHSs, Fachhochschulen, universities, etc. • You should include this text on any invoices you send them „USt befreit nach §4 Nr. 21 UStG” • Are other organisations also exempt? • Yes, e.g. ELTAs who offer „ wissenschaftliche und belehrende Vorträge“ • You should include this text on any invoices you send them, „UStbefreit nach §4 Nr. 22a UStG“ ELTAF Red Tape Talk

  30. What should you include in a contract? • Type of course(s) you will teach • Where you will teach them • When you will teach them, e.g. times, days • The duration of the course, e.g. 24 U.E. • Price per U.E. • When you will bill, i.e. in advance/arrears, at the end of the month • When/How much you will charge for a late cancellation ELTAF Red Tape Talk

  31. What should you include in a contract? • How much you charge for travel • Whether or not you will find a replacement if you are sick • A confidentiality clause (i.e. you will not pass information on to third parties) • The area of jurisdiction, e.g. Munich • That other than increases to the hourly rate you charge, all changes to the contract have to be made in writing ELTAF Red Tape Talk

  32. Late or non-payment of invoices Unless otherwise stated, bills have to be paid within 30 days. If a bill is not paid and you decide to take legal action, you have to: • go to the Amtsgericht and get a form called a Mahnbescheid (or download one). • after you have filled out the form with all the relevant details, you have to pay a fee which is based on the sum due, e.g. for a bill worth €300 you have to pay around €60 and for a bill worth €1,500 you will pay around €180. ELTAF Red Tape Talk

  33. Late or non-payment of invoices 3) the court will then send your debtor a summons to pay the outstanding invoice(s) + the costs (interest, legal fees, etc)4) if the company still refuses to pay, the court then sends a "Vollstreckungsbescheid" or writ of execution and if that is ignored, the bailiffs. 4.87% http://www.online-mahnantrag.de/ http://www.mahnbescheid.com/ http://www.zinsen-berechnen.de/verzugszinsrechner.php ELTAF Red Tape Talk

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