Ferialjobs – no earning money without tax hurdles

Es gibt viele Gründe für einen Besuch im Freien. Holiday job, which particularly often during the Summer months is completed. In addition to collecting Practical experience or a taster of an exciting career field, it is often mmonetary aspects, which are decisive for the decision to go to work in the summer.

With that (in retrospect) no unpleasant consequences enter, also must the tax and social insurance law Aspects as well as those related to the Family allowance must be taken into account. The following remarks naturally apply not only to „holiday jobs“ but also to ongoing jobs alongside studies.

Tax consequences

The Tax treatment at Summer jobs fundamentally depends on whether you are with the employer employed or in the form of Contract of employment or. Freelance service contract is active. If it takes Employment relationship e.g. only one month (but in any case shorter than a full year) and, due to appropriately high remuneration Deduct social security and wage tax, it is advisable in the following calendar year to Employee tax return to be carried out. The application for a tax assessment for employees can even bis to 5 years back be asked and leads regularly to a Tax credit, as the payments are spread throughout the year and the income tax is recalculated. Due to the Tax Reform 2015/16 is it also to an increase of the Social security refund formerly Negative tax (as is well known). This has a positive effect, as the absence of tax liability due to insufficient income may result in a credit of 50% for certain income-related expenses (in particular social security contributions). The Social security refund for the assessment year 2016, the maximum is. 400 euros or even 500 euros upon entitlement to a commuter allowance (the commuter supplement no longer exists).

Does it occur Employment I'm Contract of employment or based on a Freelance service contract, income from independent work and it will no income tax to be retained. From an annual income of €11,000 or €12,000 if income subject to wage tax is also included, Must one Income Tax Return issued. VAT liability relating to summer jobs Contract for work or as a self-employed contractor theoretically conceivable, but at any rate first then, when the Net income exceeding €30,000, until then the fictitious VAT exemption also Small business owner up to €30,000 in net sales must also None VAT return issued.

Family allowance

earnings from a summer job can, especially if they coincide with other income, lead to the Earned income threshold for die Family allowance exceeded will. If this is the case, the border must Excess amount Repaid become. The fate of the family allowance also depends on Child tax credit tied. The repayment obligation (mostly unwelcome for the parents) arises when, in relation to the calendar year, a taxable income from more also £10,000 achieved, whereby certain Special features to be taken into account when establishing this limit. Main exception is the age where the Earned income threshold for teenagers no significance before the age of 19 Hat.

However, from the beginning of the calendar year in which the 19th birthday occurs, a distinction must be made as to whether the Revenue (e.g. from the summer job) into the Period fallen, into which Received child benefit whether or not. If no family allowance is drawn on short notice, income during this period is not relevant for the calculation of the earnings limit. No family allowance is granted, for example, if the intended study period in a phase of study has been exceeded. Likewise, social assistance as tax-free income is not considered relevant income, Compensation for a recognised Apprenticeship or Orphan's pensions. The income relevant for the earned income limit is finally determined after taking into account the income-related Expenditure deducted were. It is important to note that for family benefit not just active income (in the case of a summer job, this is usually income from employment) but everything The Income tax underlying Income prevailing Taxable income (e.g. interest or dividends) remain tax-systematically correct, however apart from.

Besides the Observe the income of the current year, in order to anticipate exceeding the earned income limit (e.g. through a summer job), it is important that upon exceeding the additional earnings limit Family allowance in the following year newly applied must be. The prerequisite, of course, is that taxable income falls below €10,000 in the new year. The Requirements for the receipt of family allowance or for exceeding the earned income limit change even then Not, when the Payout The Family allowance directly to the child be done. This can at Adulthood applied for with the consent of the entitled parent at the tax office and then also leads to the transfer of the child allowance to the specified account. Claims for recovery concerning family allowance, nevertheless are directed further to the Parents.

Consequences in social security

the majority of work experience students – when they employed are and therefore do not work on the basis of a contract for work or a freelance service contract – will social security law How Ordinary workers deals with. Is it Gross salary more than £415.72 per month, Thus, mandatory insurance and the deduction of social security contributions come into effect.

Finally, it should be Employer Perspective, particularly since the entry into force of Wage and Social Dumping Prevention Act, care must be taken that the interns are remunerated appropriately, as otherwise there could be considerable Administrative penalties can come. It must be ensured that neither the collectively agreed to be done Base salary is also that when it comes to paying interns, that it is to be below Non-grant from employment remuneration, which according to law, regulation or
Collective agreement is due (e.g. overtime or allowances according to law or collective agreement).

Image: © Frank Merfort - Fotolia