Frequently asked questions about light entrepreneurship

20.12.2021 | FREEkly news EN

Light entrepreneurship

Who can be a light entrepreneur?
– Anyone with a Finnish tax card can be a light entrepreneur.

How much money is left over for me?
– With the FREE.fi calculator , a light entrepreneur can calculate their own billing price.

What is VAT?
– VAT is value-added tax, which is added to the charge almost without exception. Exceptions can be found here. A light entrepreneur will not get VAT relief because the billing happens via the FREE.fi business ID.

Is there an age limit for a light entrepreneur?
– No, there isn’t. An underaged person can be a light entrepreneur as long as they have a tax card and their guardian fills the permit form.

Can I charge a foreign client?
– Yes, you can. Via FREE.fi, you can add a foreign client on the client account and invoice them normally.

An account

Why has my tax card been denied?
– A tax card is denied if the information provided by the user and the information on the tax card do not match.

How can I order a Trump card?
– In the FREE.fi application, you can order a Trump card in the Trump card section. Fill in the required information and we will send you a temporary Trump card via email within 1–3 days.

Why is my balance negative?
– The balance is negative if the user owes us. The balance will be even when funds are added to the account. For example, if the user has got an advance, the balance will be negative because it has to be repaid. Or if the user has chosen that we will pay the YEL insurance, we will deduct the YEL payment from the balance of the account, in which case the balance can be negative.

Salary

How can I get an advance?
– To get an advance, the user must have billed the same company 3 times and all of the invoices must be paid.

What is an instant credit transfer?
– With an instant credit transfer, the salary will be transferred to the account without delays within an hour. The instant credit transfer service costs EUR 25.

Charging

What does the automatic salary payment mean?
– Automatic salary payment means that the salary will be transferred to the account automatically once the client’s payment has been transferred to us. If the user is not using automatic salary payment, the money will go to the FREE.fi account, from which the user can withdraw the salary.

The client has not paid the invoice. What should I do?
– We will send a reminder after 7 days have passed since the due date.

The client hasn’t paid the invoice despite the reminder. What should I do?
– 14 days after sending the reminder, we will send it to collections. We use Certum to collect unpaid invoices.

YEL

How much does the YEL insurance cost?
– You specify your own annual income for insurance, as long as it is the minimum. You can find the YEL calculator here. Remember that YEL is also your social security. Specify your annual income so that you are safe if something unexpected happens.

What insurance company is used for YEL?
– We use the insurance company Varma.

Must I make the payments myself?
– No, you don’t. You can take the insurance via FREE.fi, in which case we will do it for you. For this, there is a charge of EUR 5 per charge. You can also take care of YEL and the payments yourself.

Insurances

What insurances do I pay for?
– A FREE.fi user gets liability insurance and accident insurance. Both insurances are part of the service fees.

What does the insurance cover?
– The accident insurance covers all hospital fees up to EUR 20.000 without deductible regarding accidents during and outside working times. The liability insurance covers EUR 500.000–1.000.000, with a deductible of EUR 1.200, if you damage the client’s property.

Is insurance mandatory?
– Yes, it is. All light entrepreneurs that use FREE.fi are automatically insured. We want the employees to be secure during and outside working times.

Recovery proceedings

When do you start recovery proceedings?
– The debt will go to foreclosure as soon as we’ve received a written notice from the National Enforcement Agency.

Why hasn’t the protected portion been taken into account?
– Primarily, we are not allowed to take the protected portion into account because the salary we pay is of another type than periodically paid salary, and in this case the foreclosed amount is ⅓.

Expenses

What can I add to the expenses?
– You can add to the expenses:

  • Kilometres if you drive with your own or your spouse’s car.
  • Meal reimbursements if you have worked for over 6 hours.
  • A daily allowance if you travel long distances for work. In this case, you cannot add meal reimbursements.
  • Receipts of equipment you have purchased for the client. Equipment which you will keep cannot be added to the expenses. However, you can add them to your tax deductibles.
  • Receipts of public transport tickets if you travel long distances for work.

Can I have an advance from the expenses?
– No, you cannot have an advance because they are not a part of your salary. They are tax-free compensation paid by the tax authority.

Why can’t I add more expenses?
– If you don’t charge your clients for the expenses, the expenses cannot be higher than the invoice. The expenses are deducted from the invoice and paid separately.

Why haven’t the expenses been reimbursed?
– They are a part of the salary, not an addition. The expenses will be paid as a tax-free part of the salary and the rest will be paid as a normal salary.

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Any concerns?

Let our experts help you either by chat, phone or email.

0203 323 45 (mon-fri 9-17)
asiakaspalvelu(at)free.fi

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Things get clearer by trying. Registration as a light entrepreneur is free and does not commit you to anything.

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