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Self-employment pitfalls: who makes sense to apply and what benefits it provides

Date: June 22, 2024 Time: 14:57:42

Guardians come out of the Twilight! When the concept of self-employment emerged, many Russians came out of the shadows and started paying taxes. And you yourself sleep easier, and the budget does not suffer!

Photo: Svetlana MAKOVEEVA

With an English tutor, we develop exclusively business relationships. Ekaterina works with my daughter on a prepaid basis. I give her money for a month in advance, she sends a check. I registered a year ago as a freelancer. She says that she immediately became calmer to live.

Katya has been teaching privately for many years. She used to give lessons at home, but after the pandemic brought everyone online, she set up work via video conferencing. Clients transferred money to her card. And she every time she was worried: what if the tax office counted her income (not so big), going through the cash register? I got the status of autonomous, the anxiety disappeared. Now everything is transparent, both for her and for the tax authorities. By the way, there are already 6.5 million people like her in Russia. And this is from 2019, when the concept of self-employment was introduced in the country (see “KP Help”). Now let’s talk about everything in more detail.


The list of professions for self-employment is extensive: tutors, babysitters, transporters, cosmetologists, manicure and pedicure masters, designers, computer specialists, tailors, freelance journalists, vacation hosts, accountants, etc. You can be self-employed by renting an apartment or house for rent, as well as for the sale of products of your own production (for example, homemade cakes).

If a person lives abroad, he also has the right to apply for such status, if he has citizenship of the Russian Federation, Belarus, Armenia, Kazakhstan or Kyrgyzstan to work only with Russian clients.

Pensioners can also apply for self-employment status. At the same time, they will not be considered employees, so their pensions will remain indexed.


Retailers (ie retailers). By law, a self-employed person can only sell what he has made himself.

Miners and mineral traders. To do this, you need a license and registration as an individual entrepreneur or LLC.

There are restrictions to obtain this status for lawyers, notaries, arbitration managers and appraisers, because by law they must pay personal income tax (IRP) – 13% of their earnings. But this applies only to his work in the specialty. If a notary makes cakes for sale, then he can do it as a self-employed person and pay a tax of 4-6% (more on this below).

Civil servants and the military can apply for self-employment, but only to rent their home.

In addition, it is not possible to enter into service contracts with self-employed workers who are employees of the client company or have terminated their employment relationship with it less than 2 years ago. With such income it is necessary to pay the IRPF at 13%.

The list of professions to be self-employed is extensive.

Photo: Ekaterina MARTINOVICH


You can become self-employed through the website of State Services, the Federal Tax Service (FTS) or the websites of some banks, for example, Sberbank (connect the “Your business” service in the application), “Tinkoff” (submit an application through the “Profile Management” – “Finish self-employment” tab), as well as VTB, Alfa-Bank, MTS-Bank and several others. In addition, there is the My Tax application – it works from a mobile phone, but there is also a web version from npd.nalog.ru. You can yourself keep records of income, calculate the amount of the fee, etc.

To become a self-employed person, you need to fill out an appropriate application in the taxpayer’s personal account, register and agree to the processing of personal data.


The professional income tax for the self-employed is as follows:

– 4% for private receipts;

– 6% for income from individual entrepreneurs and legal entities.

And then the most interesting. The self-employed worker decides on what income he must pay taxes. To do this, he forms a check through the application or web from the receipts that he has received for services or goods as a freelancer. For tax controls it is enough, as they calculate the tax.

The checks are, in fact, your separate statement. And if there is no income, no taxes are paid.

In addition, the self-employed do not pay taxes on their own:

– wages;

– Order stubs from a previous employer if you quit less than two years ago;

– Securities income;

– money from the sale of an apartment, a car or personal items, for example, a telephone or a nightstand;

– income in kind – when products are paid for work;

– income from a will, gift or copyright agreement, etc.

our note

Photo: Dmitry POLUKHIN


– Cunning with taxes will not work, since the tax controls the correspondence of your income and expenses. Even if the accounts are in different banks, – answers the Vice-rector of the Financial University of the Government of the Russian Federation, Alexander Safonov. – And if the expenses significantly exceed the declared income, then – “Where does the money come from, Zin?”. And a person will inevitably face a penalty for the amount of expenses that does not correspond to income. If you want to argue, go to court. Prove your case there, bring witnesses, donors, etc. But know that if the court reveals tax evasion, you will face a criminal article (up to one year in prison, and if the amount of non-payment exceeds 13.5 million rubles in three years, then up to three years – Ed. ).

Those who, without obtaining the status of self-employed, receive income from their activities will be penalized. Sooner or later, the tax authorities will pay attention to the fraudster and issue a fine – 20% of the amount of income (in case of repeated violation – 100%) and fines for each day of delay.


Let’s go back to our tutor. Ekaterina has 10 regular students. They work individually an average of 6 hours a week. An hour of classes – 1000 rubles. Monthly income – 60 thousand rubles.

In addition, Ekaterina provides group English training services to a single company (LLC). She is paid another 50 thousand rubles a month for this.

Suppose you work 11 months out of the year; the self-employed also need vacations.

The total income per year before taxes and contributions will be 1 million 210 thousand rubles. The average monthly income before taxes and contributions is 100,833 rubles.

Personal income tax – 4%: 2,400 rubles per month, or 26,400 for 11 months of work.

Income tax of a legal entity: 6%: 3,000 rubles per month, or 33,000 for 11 months of work.

Voluntary contribution to the Pension Fund for self-employed citizens – 42,879 rubles per year (this is the minimum amount for 2023).

As a result, after paying taxes, Catherine’s earnings will be:

if you do not pay a voluntary contribution – 1,150,600 rubles per year, or 95,883 rubles per month;

if you pay a voluntary contribution – 1,107,721 rubles per year, or 92,310 rubles per month.


In simple terms, a self-employed worker is one who works for their own account and pays the Professional Income Tax (IRPF). At the same time, you can be a staff member of any organization or work under contract.

By the way

Photo: Dmitry POLUKHIN


Can you work with an employment contract and be self-employed at the same time?

Can. At the same time, your employer will withhold personal income tax from wages, and you must pay professional income tax on part-time self-employment jobs.

– Is it allowed to be an individual entrepreneur (PI) also on my own account?

Yes. But there are restrictions: a self-employed person cannot resell and hire employees. And if the income during the year exceeds 2.4 million rubles, then at the end of the year the tax payments will be the same as for individual entrepreneurs.

– Does the self-employed person pay insurance premiums?

Remember that the payment of insurance premiums is the responsibility of the employers. These are contributions to the budget for pensions, social security and medical remunerations paid to their employees.

The self-employed are exempt from paying insurance premiums. As for pension contributions, it is a voluntary matter. If you want to receive a pension in the future, transfer the contributions to the Pension Fund. The minimum voluntary contribution to the Social Fund of Russia (formerly the Pension Fund) for self-employed citizens who want to receive an insurance pension in the future in 2023 is 42,878 rubles 88 kopecks. You can pay less, but then the experience will not be counted for a full year, but for the number of months that will be proportional to the contribution. But if you can pay more, then you will receive a higher individual pension rate and will be able to claim a higher pension in the future. Information about the amounts can be found in the My Tax app. The application can be submitted through the “Gosuslugi” or a branch of the Social Fund of Russia.

– Are there tax deductions?

A self-employed worker is not entitled to the usual tax deductions that working citizens can request: for education, medical services, home purchase, etc., because they do not pay personal income tax. But there is a small one-time bonus that is given when registering a self-employed person – 10 thousand rubles. This money cannot be withdrawn or spent. They are used only to reduce the tax rate: 3% instead of 4% – from the income of natural persons, 4% instead of 6% – from the income of legal entities. Until you spend the entire amount in this way, the tax rate will be reduced.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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