He self-employed family member It is an option that is designed for family businesses, so that direct family members can officially work in them under the Special Regime for Self-Employed Work (RETA).
This self-employed collaborator is a family member of the self-employed person with whom he or she lives and works to contribute to his or her business. In current legislation only allows the hiring of direct relatives of up to a second degree of consanguinity or adoption to adopt this figure, in addition to living with the self-employed owner or, at the very least, being economically dependent on him or her and collaborating with him on an ongoing basis.
In this way, spouses, ascendants (grandparents, parents), descendants (sons and daughters, grandsons and granddaughters), and other relatives up to the second degree, such as brothers and sisters, can be autonomous collaborators. It is important to emphasize that brothers-in-law and father-in-law are not covered by the regulations.
It must be taken into account that the main self-employed person enjoys a series of bonuses that can be applied to Social Security contributions, so that, for 12 months, if he hires a family member indefinitely, Self-employed people can benefit from a 100% deduction in their business fee for common contingencies.
If a self-employed person is going to hire a child under 30 years of ageyou have the possibility of taking advantage of two options, that of hiring under the General Regime or as a self-employed collaborator. In this way, children under this age can be hired as employed workers, but with the disadvantage that They will not be covered by unemployment.
To register as a self-employed family member, you will have to present the TA 0521/2 form at the Social Security, and you must provide the documentation that proves the degree of relationship, a copy of the DNI/NIE and the document that justifies the registration in the RETA of the titular autonomous person.
Advantages and disadvantages of the self-employed family member
Once the characteristics of the self-employed family member are known, their advantages and disadvantages must be highlighted, so that it can be determined if it is the best option for each particular case.
Among its main advantages we must highlight the following:
- Social Security Bonuses: 50% reduction in the fee during the first 18 months, which becomes 25% in the following 6 months. Thanks to this, you will pay 160 euros less each time at the beginning, which is a great help.
- Simplification of tax management: There is no obligation to submit quarterly income tax or VAT returns. The income is taxed in the Income Tax return as income from work.
- Complete social coverage: It includes protection for retirement, illness, work accidents and maternity or paternity.
Likewise, it has a series of disadvantages associated with it that must be taken into account, and they are the following:
- You cannot access the flat rate: This regime makes it impossible to benefit from the self-employed flat rate.
- Business dependency: The continuity of the work depends directly on the activity of the holder.
- Limitation of other aid: By enjoying this figure, you cannot opt for specific incentives for entrepreneurs or new activities.
Once its advantages and disadvantages are known, you must know that it is an interesting figure for all those who want to integrate a family member into your economic activity, mainly due to the bonuses and the simplicity of tax management. However, its limitations must be taken into account before opting for this figure.
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