Who is freelancer

 Sometimes one hears very funny formulations from the new self-employed: They are recently Ebay power sellers on a “freelance basis”. Or they wanted to “try their hand at being a freelance journalist, but have not yet managed to register a business”. Such fundamental errors testify to widespread misunderstandings about what so-called “liberal professions” and “trades” actually are. Freelancers, like traders, are self-employed, but not every self-employed person is automatically a freelancer or has to register a business! So who is a freelancer and who is actually a trader?

Self-employed, commercial or at least freelance?

Anyone who works "on account" and receives full fees, pays income tax and mostly sales tax (if the small business regulation does not apply) is self-employed, has to take care of social security for old age and illness, as well as insurance against accidents at work and claims for damages , negotiates his fees himself and has no statutory right to protection against dismissal, paid vacation or payment in the event of illness. But who is a freelancer and who is a trader

Who is a freelancer?

The freelancer status includes a very specific group of so-called “catalog jobs”. But who is a freelancer? This is precisely defined in Section 18 of the Income Tax Act:

“Freelance work includes independent scientific, artistic, literary, teaching or educational work, the independent work of doctors, dentists, veterinarians, lawyers, notaries, patent attorneys, surveyors, engineers, architects, commercial chemists, auditors, tax advisors, and people's advisory services - and business economists, sworn accountants, tax agents, naturopaths, dentists, physiotherapists, journalists, photo reporters, interpreters, translators, pilots and similar professions. A member of a liberal profession within the meaning of sentences 1 and 2 is also active as a freelancer if he uses the help of professionally trained workers; The prerequisite is that, based on his own specialist knowledge, he is responsible for managing and acting. "

What are the similar professions?

In the catalog occupations, in addition to listing freelance activities, there is also talk of “similar occupations”. The law is therefore formulated openly. Not only a state professional training or a state recognized professional qualification enables a job as a freelancer in the corresponding professional field. Non-governmental training, many years of professional experience or approval also open the way to recognition as a freelancer.

For this reason, for example, in the field of health professions, the freelance professions that serve to alleviate or heal illnesses or physical impairments. This means that an activity in health care also falls under the definition of freelance work.

So who is a freelancer? - The Ebay seller is definitely not one, even if he likes to talk about himself that he works “on a freelance basis”.

Freelancer in a team

Many freelancers join together to form office, law firm or practice communities. However, this form of professional activity does not change the status of a freelancer for everyone involved. Because as long as the common office or law firm does not join together to form an economic community and establish a joint company, the members of the community act economically and therefore also tax-independently of one another. Every doctor in the joint practice remains, like every lawyer in the joint law firm, an independent freelancer.

Benefits of freelance status

Freelancers enjoy a number of privileges - above all, numerous regulations for traders do not apply to them (for example trade tax or IHK membership). As a freelancer, you don't have to organize double bookkeeping or create a balance sheet. You can provide your tax information using the income surplus calculation, which is much easier to carry out than a balance sheet.

In addition, professional pension funds are available for many professional groups; Artists and publicists are insured almost like employees through the Artists' Social Insurance Fund (KSK) (because the KSK pays the share of pension, health and long-term care insurance that the employer pays for employees). But be careful: freelancers can lose their privileged status immediately if they supplement their income with (too much) commercial income or (too high) income from salaried activities. In addition, all of this must be stated in the tax return for freelancers!

Who is a freelancer and who is a freelancer?

The term freelancer describes a freelancer in a company. Freelancers can work on behalf of several different companies. They are not necessarily integrated into the operations of their clients. In addition, freelancers are not bound by the instructions of their clients, as they work independently and invoice their services through their own invoice. Freelancers are self-employed who are not bound to an employer by an open-ended employment contract. As a rule, freelancers work on the basis of service contracts within a specified time frame. Often the remuneration takes place via a contract for work or as a flat rate. Freelancers can work in many different industries and professions.

What are the differences to the freelancer?

In contrast, the term freelancer refers to a member of certain professions, as listed in the directory of liberal professions in the Income Tax Act § 18 EStG. Freelancers can work as freelancers as well as run a business. As a rule, freelancers do not conclude service contracts in order to work. They invoice their services according to an individual agreement with their customers or clients. The time that freelancers work for one or more clients is also not limited in time. Freelancers cannot work independently in professions that are not listed in the directory of liberal professions.