More and more people are choosing their own alongside their main job independence build up. No matter whether you want to try out a future business idea or want to secure yourself financially, if you decide to be self-employed as a part-time job, you should consider a few things. We introduce you to five points that you need to know!
Point 1 – register for self-employment
No matter if you are full-time or part-time If you are self-employed, you must register with the trade office of your municipality in accordance with Section 14 of the trade tax regulations. To do this, you have to describe your secondary employment in more detail and pay a registration fee.
Tip: Before registering, make sure to check whether you are a small business owner with your part-time job. Under certain circumstances you can benefit from the small business regulation according to § 19 of the Value Added Tax Act. You can find out more about the small business regulation here .
Point 2 – Inform your employer
One of the most important steps is to let your employer know. Basically, it is up to you to decide whether you want to become self-employed or not. Nevertheless, your employment contract usually regulates how many hours you can spend on part-time activities per month. Therefore, play with open cards so that you can avoid problems at your job.
Item 3 – maximum working hours and earnings
On the part of the trade and tax office, you are completely free to invest as many hours as you like in your part-time job. However, there are time limits with health insurance. Extra insurance must be taken out if the workload exceeds 18 hours per week.
It looks similar when it comes to earnings. There is no income limit for employees who become self-employed. There is a monthly upper limit only for students who receive BAFöG and recipients of unemployment benefits. This is 450 euros for students. For unemployment benefit 1 recipient, this is 165 euros. For unemployment benefit 2 recipients, the limit is 100 euros per month.
Point 4 – Choose the right legal form
In principle, as with the main activity, you can freely choose the legal form. As a rule, you start out as a sole trader or in the form of a GbR. This means that you can start your work straight away, as no share capital or entry in the commercial register is required. Please note, however, that with these legal forms you are liable with your own assets!
Point 5 – Find out about taxes and insurance
Even when you are self-employed, you have to deal with the subject of taxes and insurance. The most important ones are discussed below:
Income Tax: If you earn more than 410 euros with your secondary activity, you have to pay tax on this. This is income from a commercial enterprise for which an income surplus calculation is due.
Value added tax: You only have to pay sales tax if you do not fall under the small business regulation. More precisely, this means if you generated more than 17,500 euros in sales in the previous year or more than 50,000 euros in the current year. As a small business owner, however, you have the option of paying sales tax voluntarily.
Trade tax: The trade tax is mandatory from a profit of 24,500 euros.
Social insurance: If you are self-employed as a part-time business, you do not have to pay any additional social insurance. This applies as long as your part-time job does not economically exceed your main job and you do not spend more than 18 hours a week on it. Otherwise, as already explained, private or voluntary insurance is required. In any case, however, it is advisable to consult your health insurance company. This also applies to students.
Reading tip: Checklist for part-time self-employment
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