Why is umbrella pay higher than PAYE?

Umbrella law

The General Treasury of the Social Security initiated an investigation and considered that the clients had maintained a self-employed activity during certain periods of time, and were not registered in the Special Regime for Self-Employed Workers.

The consequence was that, in order to reclaim the back contributions, the Social Security General Treasury automatically registered and deregistered them on those dates. As a result, some affected clients had to pay these overdue contributions plus interest for late payment. In some cases, this figure was as high as 3,000 euros.

In this regard, we would like to clarify that the information shown here is a compilation of external sources for information purposes. We recommend all users to go to a trusted advisor to analyze their case personally.

However, there may be other cases in which professionals are not registered in the Special Regime of the Social Security as self-employed. If you have or you are going to have complementary jobs in which you are going to invoice money, without doing it under the umbrella of the underground economy, and without being registered as self-employed, you should know that:

Law 25 2009 of December 22nd

Types of employment contracts applicable in 2020, grouped and explained in 5 blocks: types of permanent, temporary, training, internship and part-time employment contracts. We explain what an employment contract is, what it entails and we also tell you about the incentives and bonuses for hiring and the new system for processing employment contracts.

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Employment contracts are agreements entered into between workers and companies to regulate the relationship between them, giving rise to a series of obligations and rights for both parties, including: activity and tasks to be performed, remuneration, working hours, working day, vacations, trial period and duration of the contract.

Both SMEs and the self-employed can register as employers with the Social Security by filing form TA.6, which makes them employers and gives them the capacity to hire and have personnel on their payroll after signing the corresponding employment contracts.

Law 25 2009

Antonio: from the beginning, what I liked was litigation, going to trial. Little by little I started to specialize in banking matters: preferential loans, subordinated debt, floor clauses, etc. Being able to sue a bank motivates me a lot.

I won the first judgment in Barcelona against Caixa Galicia for a complex financial product, and from then on I started to get publicity and clients started to come in. The truth is that I can’t complain.

Dimitri: In my case, becoming self-employed was my own decision. Something inside me told me that I was not made to work for others. I wanted to start my own adventure: I set up a company that had nothing to do with law, but it didn’t go well. Sometimes the ideas come before the means and the possibilities, and in the end you end up looking at what is being done in the U.S., and there, freelance law is a very good thing. In the end, you end up looking at what is being done in the U.S., and freelance law is much more widespread there than here. I saw a business model and I took the plunge.I am more motivated to work for myself, but I understand people who say that working for someone else is a comfort, because you don’t have headaches.

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Lssi legal news

However, it is important to emphasize that in order to improve the regulatory framework of the services sector, it is not enough to establish, by means of this Law, the provisions and general principles that should govern the current and future regulation of service activities. On the contrary, it will be necessary to carry out an evaluation exercise of the regulations governing access to service activities and the exercise thereof in accordance with the principles and criteria established by this Law and, if necessary, to amend or repeal such regulations.

The procedures and formalities for obtaining authorizations must be clear and made known in advance. Positive administrative silence will be applied to these procedures except in those cases in which it is duly justified by an overriding reason of general interest.

On the other hand, in order to favor access to information for the recipients of services, total bans on commercial communications in the case of regulated professions are abolished and any limitations imposed must be non-discriminatory, justified by an overriding reason of general interest and proportionate.

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