Self-employed: this is the personal income tax and payments on account in 2017

The non-professional self-employed will have to make payments on account of the 20% of their benefits quarterly

Personal Income Tax withholdings are advance payments of Personal Income Tax, which taxes the economic benefits that the taxpayer has obtained during the year. Self-employed workers have the obligation to enter these withholdings quarterly, through model 111, if it is a professional, or model 130 for non-professional self-employed workers.

This year there are news especially for the self-employed. For example, professional self-employed workers, such as doctors, lawyers or architects, will have to apply a 15% withholding on all invoices they issue. On the other hand, non-professional self-employed workers, such as plumbers, mechanics or bar owners, will have to present IRPF installment payments each quarter and make a payment on account of the 20% of the benefits they have obtained quarterly and on a regular basis. accumulated.

Therefore, the non-professional self-employed will have to calculate the income and expenses of the first quarter and from the resulting profit find the 20%, which will be what they will have to enter the Treasury as payment on account. In the second quarter, it will be necessary to calculate the income and expenses of both quarters and apply a 20% to the resulting profit. And so on until the fourth quarter. In this way, at the end of the year a series of personal income tax payments will have been made, provided that profits have been obtained in one of the quarters.

With the presentation of the annual income statement, the situation is regularized and in case of having paid more withholdings than the corresponding amount, the Treasury will return the corresponding part. Although the IRPF tax period is the calendar year, the tax must be settled during the first six months of the following year, that is, no later than June 30.

The presentation dates of payments on account are the 20th of the month following the end of each quarter, that is, April 20 for the first quarter, July 20 for the second, and October 20 for the third. and on January 20 of the following year for the fourth.

At Aseryde we are here to inform you of all the tax and Social Security news that may affect you as a self-employed person. Ask us your doubts.