scook17

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About scook17

  • Birthday May 01

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  • Location Munich
  • Nationality British
  • Gender Male
  • Year of birth
  1. Financial Aid for self-employed people

    Bridging Aid III launched in 2021. See https://www.bundesfinanzministerium.de/Content/DE/Standardartikel/Themen/Schlaglichter/Corona-Schutzschild/2020-11-05-faq-ausserordentliche-wirtschaftshilfe.html Click on the 'Restart Help' section below November/December Aid for freelancers / self employed.   Basically it's aimed at most wholly self employed people who have little fixed costs but who's income went away when they closed everything. Artists for example. Pays a max of 5K Euros if sales expected between Dec 2020 and June 2021 have falled by 50% or more compared to a reference period in 2019.    
  2. CustomX,   Many UK freelancers work in the UK on a LTD company basis. They often have no choice in the matter as you'd never get a role as 'self employed' as happens commonly in Germany. The problem with just keeping a UK company, is that the German tax office will see it as managed from Germany and therefore the company is taxable in Germany. For a longer term stay in Germany, being a freelancer is a much better option in many regards, but wose in others such as liability etc. Getting married also helps a lot in Germany compared with the UK in terms of tax liability.   Anyway, concerning your UK company arrangement. You are (I guess) paying PAYE in the UK. This include NI which covers UK unemployment. Also working on a low salary in the UK often qualifies for state support as the wage is too low. Also it can help with housing benefit, working tax credits etc. A low salary is that threshold where you and the employer pay NI, £9516 in 2021. Was a long time ago I lived in the UK as a freelancer, but you were always advised to have a salary of at least the level where you contributed to the social taxes.   Here might be a good place to look https://www.citizensadvice.org.uk/benefits/help-if-on-a-low-income/ Note sure how residence affects these, especially post brexit.   If you are working in Germany on a low income, get yourself a German salaried job. It covers unemployment insurance, pension payments etc. You get some percentage of your net salary, unlike the UK which pays out a fixed amount. Avoid mini jobs as they seem (IMHO) to be useless in terms of social benefits. Even a part time job which pays 500 Euros a month net salary, costs the employer and you around 750 Euros in total. Thus around a third is being paid in social and income taxes, even though the income tax at that point is zero.
  3. Need ELSTER online help

    I noticed the codes change over the years, so now (2021) there is no longer EU services vs EU goods, only EU goods+services vs EU vehicle delivery.   I recently obtained a non DE client, and was trying to figure out how to bill exclusive of MWST as they are a foreign company I provide services to. I used code 41, intra-community deliveries and it seemed to work out fine, in terms of the calculations being correct. However, I noticed later in my inbox appeared this message, which google translated into English for me:   "Dear My ELSTER user, You have made entries in one or more of the following code numbers for the tax number XXX/XXX/XXXXX in the advance VAT registration (XXX 2020). -Code 21, non-taxable other services- -Code number 41, intra-community deliveries- -Code number 42, intra-community triangular transactions- -Code number 77, deliveries from agricultural and forestry operations according to § 24 UStG to customers with VAT ID no. - You are therefore obliged to electronically submit a summary report with the relevant sales to the BZSt , Saarlouis office, by the 25th day after the relevant reporting period has expired . If you have already submitted the EU sales list, you can consider this notice to be invalid. My ELSTER and My BOP are available for the transmission of the recapitulative statement. Further information can be found on the BZSt website www.bzst.bund.de under the topic "Company / VAT / Recapitulative statements ". With best regards Your financial management".   Now I did wonder when entering the values why there was no element for which EU country the company was from, so now I get it, there is another form to complete. I looked under www.bzst.bund.de and there is no form there. I could not find one in ELSTER either. I am sure I am not alone in providing services to non DE customers. 
  4. Taxes if house is credit free

    "You sell a house only you lived in:the profit is always tax free, no matter how soon you sell it (no minimum holding period)." Interesting. I always thought you had to wait 10 years until sale. So when the old German couple bought a house for nothing (back in the 'old' days), and in 2020, sell it for a million euros, literally zero tax is payable if they owned the house themselves? I see why so many Germans sell up and move to the Canary Islands.
  5.   Interesting. The https://www.gesetze-im-internet.de/sgb_6/__11.html link also states (or at least how I read it) that  to be entitled to benefits you need to pay in for 15 years. In fairnes the UK scheme is 10 years, but this minimum period seems excessive. I guess it's to avoid small pensions.
  6. To follow up on the topic of 'Direktzusage' or direct pension with a company. I noticed last night when reserching this, there is a 284 Euros per month allowance which can be paid into such an account free of social and income taxes. This is the total of employee and employer contributons. This can double to 568 Euros per month, but the additional contributions are then subject to social taxes, but not income tax. Over 568 Euros contributions are subject to income and social taxes, so in effect, salary.   So 268 Euros is 3216 a year. German pensions count as income so are taxed (at least by the time I retire), so the 9744 (2021) tax free allowance applies, per person. The chances are you're paying in the order of 50% plus after income and social taxes, perhaps as little as a third in total if on the very low end of the salary scale. Thus is 268 Euros a month is collected, it can just be put into an account, and at retirement, the pot distributed over N years. The amount is rather small, but it basically shifts income from now at a high tax rate to retirement when (presumably) your income, and tax rate, is lower.   As a freelancer I would love to have such an option. It mirrors the typical UK pensions with drawdown options. But it seems such choices are limited to employees. At least as far as I see you're stuck with an annity as a freelancer here in Germany. Contributions to my existing UK personal pension, and even those to the UK state pension, are not tax deductable in Germany (even before brexit).  
  7. What fees to charge for translation work

    Most of the questions here are related to translation of a document. A friend of mine works as a freelance medical translator, so translating for private patients (US + Russian) who don't speak German. She does simultanous translation, or in other words she can translate fairly much immediately, rather than listen to the doctors explaination and then summarise. She's been working in this field for more than five years now, so has quite some experience as to who to see/what they need etc. She also organizes appointments, visas, hotels, taxi's etc as often her client's speak zero German. However, last year with the travel ban on foriegners, most of her work from the places she works for has dried up and it doesn't look like this will change any time soon.   I was wondering what other options there are for people experienced more with face-to-face translation, rather than translating documents. Any suggestions would be helpful. Thanks.    
  8. Before or after Jan 1st? As of Jan 1st, they would not be returning from an EU country. As of Dec. 31st, surely they would be considered an EU transfer? Are you not allowed as an EU citizen to 'retire' to any EU country? What happens to all the Germans who move to the Canary Island to retire for example?
  9.   "There is no need to annuitize the account."   This is very interesting. The need to purchase an annunity basically made any private pension useless (IMHO). As a freelancer, you could contribute around 20K a year to such schemes, but I never did like investments. Tax derreral is fine. I am a freelancer. I have two employees within my freelancing business.    Googling revealed this guide (in English): https://uk.practicallaw.thomsonreuters.com/0-594-6625?transitionType=Default&contextData=(sc.Default)&firstPage=true#co_anchor_a786777   I like the 'Direktzusage' approach. Seems you can have an pension 'account' and fund it for later retirement. Personally I have a UK based SIPP plan, as this allows for drawdown. Basically this allows you to draw out some (limited) percentage each year, say 4% to 5%. Seems the Direktzusage plan is similar, but not for freelancers, just their employees.
  10. Accused of torrenting copyrighted material

    Am I correct in thinking German ISPs are required to disclose IP addresses of their clients to anyone who asks? Seems a privacy violation. Most people caught are using a torrent of one form or another. This connects IP addresses, so the sender can 'see' the IP address of the peers. IP addresses are allocated dynamically when you connect to the ISP. So, presumably the ISP is providing the IP addresses to these companies which are carrying out a form of legal extortion. Is this required by German law or are they aiding these companies of their own accord? Is this true of any EU country or just Germany? Just wondering on the legal side if anyone knows for sure.   With a VPN in lets say a non EU country, most claim not to log who was connected to what IP address. Therefore they are unable to provide a translation of the VPN IPs (what torrent peer sees) to the real IP (what the VPN user connected with).   One other thing I am unclear about, is, is it legal to setup a shared file in order to deliberately entrap people. A so called honey pot? Would be highly lucrative from a legal extortion perspective. At least in some countries this is illegal if practiced by the police. By what about such third party companies claiming to be employed by the film industry.  
  11. UK LTD Company, Germany - Options (Freiberufler or...)

    I wonder how the answers to this topic might change if Kaffeemonster had an Irish Ltd instead of a UK Ltd, espectially after brexit. I guess one relevant question is, regardless of the UK/Irish question, is the company controlled/run from the (new) seat in Germany. I wonder if hiring a 'manager' to actually run the company, but retaining ownership is enough? Given brexit, UK citizens are no longer allowed to simply move to an EU country. I think I would make do with the 90 days in 180 days rule, and stay in the UK, which is actually when you think about it, every other week.