Reply to Freelancing as English Teacher

By PandaMunich,
I like your user name     I'm not an expert in this (engelchen is), but could it be since both your post were nearly at the same time, that she didn't see your above "Erwerbstätigkeit"-post?   Because, as far as I know, Erwerbstätigkeit allows you to be both:   self-employed (= selbständige Tätigkeit), and
an employee (= Beschäftigung)
  So, as far as I understand it, you wouldn't need another permit, yours is already good for also becoming a freelancer, but only up to the date written on it. So you would have to get another permit when this one expires.   source:     *********************************************************     If you had only been a member of AOK for less than 12 months they would throw you out. You would then have to get private health insurance (john g.!).   *********************************************************   Back to the mechanics of becoming a freelance teacher.   Obligation to contribute to public pension insurance: As a teacher you fall under an old law which obliges teachers to contribute 19.6% (in 2011: 19.9%) of your gross income to the public pension insurance (= gesetzliche Rentenversicherung, also known as DRV - Deutsche Rentenversicherung). There's no way you can get around that, it's a law, §2 SGB VI. You can read more about it in English Teacher and the Pension Scheme - Germany.   However, since you already have to contribute because of this old law, there isn't really that much anybody could do to you if you earn more than 83.3% of your income from just one client. Normally, people are then classified as scheinselbständig and risk having to contribute to public pension insurance. But for you that's already a certainty...   People who are not teachers can apply for an exemption to this 83.3% income rule for their first 3 years in business, see "Scheinselbständigkeit" and German pension system for details.   -----------------------------   Getting a Steuernummer: Before you start freelancing, you will have to fill in a special questionnaire describing the freelance activity you intend to do (= Fragebogen zur steuerlichen Erfassung) and apply with this questionnaire to your local Finanzamt for a tax number (= Steuernummer).   You can find out which Finanzamt is reponsible for you on this web site, just give in your address (although this is a site of the NRW Finanzämter, it will find the responsible Finanzamt anywhere in Germany).   I suggest you read the TT wiki article on "Freelancing in Germany" carefully.   -----------------------------   Invoicing: When you are a freelancer you will have to write your client invoices. Depending on how much you earn, you will also have to charge VAT in those invoices.   If you earn less than 17,500€ a year you are a Kleinunternehmer and don't have to charge VAT. You are allowed to go over that amount once, but only up to 50,000€ and still not charge VAT that year, but you will then have to charge VAT from the following year.   If you are a Kleinunternehmer, your invoices have to contain a special sentence (taken from this good example of a Kleinunternehmer invoice): "Es erfolgt kein Ausweis der Umsatzsteuer aufgrund der Anwendung der Kleinunternehmerregelung gem. § 19 UStG."   An proper invoice also has to contain: - your Steuernummer (or Umsatzsteuer-ID, but as a Kleinunternehmer you needn't bother apply for one) - a running invoice number - the date you "delivered" your service - date of invoice - and many other things, please see here for a complete list.   I suggest you simply take this good example of a Kleinunternehmer invoice as a template and change it to your needs.   -----------------------------   Tax: Please consult the TT Elster wiki for step-by-step instructions how to fill in the tax forms.   Depending on what you estimated your income will be the Finanzamt will oblige to pre-pay income tax every 2 months.   Please remember that as a freelancer you can claim tax deductions for any costs that are needed for your business activity (they are called Betriebsausgaben), please see here for a list:   in German, so that you know the German names for these expenses
above list machine-translated into English     If you have to charge VAT, you will also have to submit VAT announcements every month and forward the VAT you took in in the previous month to the Finanzamt unasked.   You will have to submit an income tax return to your local Finanzamt every year until 31. May for the previous year. The instructions for filling in the tax forms can be found in the TT Elster wiki:   yellow section for employees (if you start freelancing in 2012 you will also have had some prior employee income in 2012, which has to mentioned in your tax return)
turquoise section for Kleinunternehmer
green section for self-employed who charge VAT
 
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