MIL-OSI Russia: Own business or part-time job: how Muscovites become self-employed


MIL OSI Translation. Region: Russian Federation –

Self-employed status opens up new opportunities for professionals and allows you to start your own business with minimal costs.

More than half a million Muscovites have already got self-employed status, every third self-employed in Russia lives in the capital. Their number continues to grow – by an average of two tens of thousands per month. Why do people get a new tax status and how they work afterwards – read the article.

Your own boss

The very word “self-employment” means that a person works for himself. The same can be said for individual entrepreneurs, owners of limited liability companies (LLCs) and other forms of business. What is the difference?

Self-employment is a new kind employmentwhich appeared in 2019. For example, you create custom websites – self-employment legalizes this activity. You can receive official income without risking a fine for illegal entrepreneurship and without registering a sole proprietorship.

Two years ago, a special tax on professional income (NPA) was established. People who run their own businesses and do not have employees can switch to a special tax regime. Moreover, their professional income for the year does not exceed 2.4 million rubles a year, or 200 thousand rubles a month. If the business begins to bring large profits, the businessman needs to register an individual enterprise (IP) or LLC.

For the self-employed, there are preferential rates – four percent for those working with individuals and six percent for those working with individual entrepreneurs or legal entities. For comparison: individual entrepreneurs pay several types of taxes and compulsory insurance premiums.

In addition, self-employed people do not pay personal income tax (PIT) from income received from such activities. They are also exempted from paying insurance premiums: a part of the paid professional income tax comes to the Compulsory Health Insurance Fund, so they can count on free medical care. Self-employed people transfer their pension contributions voluntarily.

Start for business

Self-employed status allows a person to get out of the gray zone and work legally. This is one of the simplest and most transparent forms of running a small business. It allows you not to think about preparing and submitting reports. All documents are generated in a special application that even replaces the cashier.

“You can become self-employed on your own in a couple of minutes. Registration of status does not require special knowledge. Reporting is not required either. The main thing is the availability of professional skills that will be useful in the future in the work. And individual entrepreneurs need to be able to keep accounting records. You can learn this in our center on Shabolovka, ”said the deputy director of the employment center.

“My job”Andrey Tarasov.

This makes self-employment a convenient form of doing business for those who start their own business. As, for example, for Tatyana Korneeva, who lost her job in a large company during a pandemic. A mother of four children came to the employment center “My Job” and after consultations realized that she wanted to work for herself. Prior to that, she taught beauty industry masters for many years. Now Tatiana sells her knowledge by filming video tutorials.

“I am used to traveling with my family. A self-employed person, like a salaried employee, can prove income by making an account statement. Documents are accepted at any visa application center. There is no need to be afraid of anything – you are giving real information. The same extracts allow you to get a loan from the bank. You do what you love, realizing that you are honest and transparent, ”said Tatiana.

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Working with large companies

Another advantage of the new status is the ability to officially work with legal entities. Companies are more willing to work with legal workers.

Today, the self-employment market is largely determined by large market players who have switched to work only with self-employed, for example, SberServices, Yandex.Eda, Delivery Club, and most taxi aggregators. This leads to the legalization of income, says Andrei Tarasov. “Having a self-employed status increases customer loyalty – at large sites you can study your profile, find information on the quantity and quality of work performed, and choose a suitable contractor,” he added.

You can register your self-employed status and receive your first orders at the Shabolovka flagship center. “At the open selection, representatives of partner employers tell how their service is arranged and invite applicants to work in the new self-employed status,” explained the deputy director of the “My Work” center.

Self-employed are also hired by large developers. “They are needed to perform certain work on construction sites – painting walls or laying parquet in apartments. Everything is done through applications: a person completes a task, sends a photo report, the quality of his work is checked and the services provided are paid for, ”said the deputy director of the“ My Work ”center.

Orders from the state

Since July last year, self-employed services began to use town. They can register on supplier portaland participate in tenders on a par with small and medium-sized businesses. The same benefits apply to them: mandatory purchase quotas, a shorter payment period for goods and services, participation in partner programs, and a reduced amount of application security.

The self-employed conclude contracts for the installation, installation and assembly of equipment, the repair of buildings, the production of souvenirs, the preparation of video materials. Top popular products include inventory, software, food, and packaging materials. Government customers also use the services of self-employed photographers, event planners, accountants, carriers and real estate landlords.

“Today, self-employment partially replaces civil contracts in the case when people are hired to perform a specific job,” notes Andrey Tarasov.

From courier to teacher

The list of professions whose representatives work for themselves is expanding. Andrey Tarasov divides the self-employed into two types. The first is those who have an idea for their own business – making toys, developing training courses, or renting a car to taxi aggregators. The second is for professionals who want to work on a free schedule. These are nannies, tutors, beauty industry specialists and many others.

Dmitry Nikolaev advises clients on taxes and property transactions. His life was also changed by the pandemic: in March last year, he was laid off in an international company. Having studied the offers of the employment center, Dmitry realized that this work format would be the best alternative for him.

“The tax on professional income allows you to get out of the shadows, to conduct your business officially, without fear of tax audits and sanctions from banks, to be an honest citizen and pay taxes,” says Dmitry.

He finds his clients on sites – aggregators of services. In addition, word of mouth helps in his case – people recommend him to their friends. “I am quite satisfied with the income limit for the self-employed, I fit into it. Hypothetically, with further expansion, I will switch to a different organizational and legal form, ”says Dmitry.

According to statistics, most of the self-employed are in construction, delivery, freight and passenger transportation, and rental housing. Among the popular species activities also repair, marketing and advertising, consulting, consulting, IT services, accounting.

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Business in a few clicks

To apply for self-employment, you just need to register in the My Tax application. The procedure takes a few minutes. All interactions with the tax office take place there. The application controls the amount of income, and if it exceeds the limit, the user is no longer considered self-employed.

“The application is very ergonomic, I would call it a friendly service. You do not need to file declarations, hire an accountant, as individual entrepreneurs and LLCs do. This is a convenient mode that allows you to feel comfortable and protected for a small tax, ”says Dmitry Nikolaev, an active user of the application.

The flagship employment center “My Job”, together with Sberbank, also launched a free registration service for individual entrepreneurs, LLCs and self-employed. All documents can be drawn up directly at the site of the Shabolovka center.

Removing self-employed status is as easy as registering – in a few minutes in the My Tax app.

Support with knowledge and money

In addition to the income limit, the self-employed have several other restrictions. They cannot be those who resell goods, trade in labeled or excisable goods, or engage in intermediary services. “You cannot work as a self-employed with a company in which you were employed over the previous two years,” added Andrey Tarasov.

Courses and seminars in the center “My Job” tell about all the nuances of self-employment. In the flagship center on Shabolovka, a whole ecosystem of “Self-employment in hand” has been created. A person who comes here can receive individual expert assistance from a specialist in the process of organizing his own business, undergo professional testing to assess his abilities and potential for starting his own business, as well as attend training courses on running a business.

“In the center“ My Work ”they tell about the status of the self-employed in a clear and accessible way. And it’s nice that this is not academic knowledge. Trainers are people from real business who teach, bringing specific cases from their practice. These are specialists of a very high level, ”says Tatyana Korneeva.

In 2021, the employment center plans to launch a new platform for future entrepreneurs, where courses, webinars and programs will appear, in particular the BusinessClass online product from Sberbank and Google. It will also be possible to participate in partner services, such as SberServices.

According to Andrey Tarasov, all these programs and services help to avoid possible mistakes. “We explain how to position ourselves, promote our services, attract new clients, increase ratings and avoid difficulties when concluding an agreement with an employer, and much more,” he said.

Moreover, the Moscow Small Business State Budgetary Institution provides consultations for start-up entrepreneurs. They can be obtained both online and by phone: +7 (495) 225-14-14, as well as in business service centers. On the site there is information about the types of support for the self-employed. Those who want to get a new status are also consulted by the Technograd innovation and educational complex.

In February, MBM also conducted multi-level free training for the self-employed and those who want to become one. It was opened by the first Moscow online forum “Self-Employed-2021”, which preceded a series of online courses “Self-Employed – Instructions for Use”. Different formats of events made it possible to cover the topic more comprehensively from different angles. Participants received not only practical knowledge, but also motivation to move from hiring to their own business.

As for financial support, in 2020, due to the difficult epidemiological situation, Moscow self-employed workers could return the tax for 2019 – the Moscow Government provided them with a subsidy. According to federal law, they were entitled to a tax deduction of one minimum wage (12,130 rubles). And today the employment center reimburses the costs associated with the registration of entrepreneurial activity – an amount of up to 10,200 rubles can be returned.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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