How to calculate the expenses of a self-employed

Are you thinking of signing up as a freelancer ? Before starting to embark on this new professional stage, it is important to take into account the costs involved in becoming self-employed, as well as the privileges you will now enjoy and the changes you will undergo in your working life. Keep in mind that a freelance does not have the right to unemployment or paid holidays, unless you agree with your company; however, it is clear that it also has a number of important advantages such as that you are your own boss and you organize your work as you prefer. In this article we are going to tell you how to calculate the expenses of a self-employed person so that you can evaluate if it comes out or does not come out profitable.

Steps to follow:


Self-employed quota . It is the first thing you have to take into account when signing up as a freelancer in your country because, depending on each state, the rate that has to be paid is one or the other. When you work for someone else, in your payroll you discount different types of taxes such as Income Tax, Social Security, unemployment, etc; These procedures are managed by the company that hires you and you receive a monthly liquid that is your net salary.

But when you are self-employed you should bear in mind that you must pay a monthly fee to be autonomous and that, whether you pay or not, you will have to pay it. So this is one of the fixed expenses that you should consider.


Nor should you forget that the IRPF you pay yourself out of your pocket, therefore, you have to know that of each bill issued you will have to subtract a% that will be paid by IRPF (this percentage fluctuates according to the economic situation of each country). Depending on how you sign up for Social Security, it is possible that the IRPF discount has to be made from each invoice or, maybe, you have to do it quarterly.

Anyway, you have to take into account that this is also a fixed expense that you have as a self-employed person, although it is true that the payment of the same is always related to the income you have; that is, if you do not charge, you do not pay.


The majority of freelancers also have to hire managers to take their accounts, present the VAT and make the declarations of the RENT. It is the simplest way to be able to take the numbers of your professional activity in a clear, controlled and carefree way, so, within your expenses as a self-employed person, you must have the monthly payment you pay to the agency so that all the documentation and the paperwork you have in order.


Then, you have to say that you will have other expenses derived from your professional activity, that is, if you are a commercial and you have to move by car, gasoline, repairs and tolls will be paid by your account. Although this type of expense is deductible for being autonomous and, asking for the corresponding invoices, you can deduct VAT. The hiring of Internet, the mobile or the rent of an office (if it is that you have it) also are usually expenses that can be deducted but with which, from the beginning, you have to count.


Fixed expenses are inevitable if you want to be autonomous but variable expenses ( rent, car, mobile, etc.) you can try to reduce them . For example, if you need an office instead of renting a complete one for you, you can opt for coworking centers that are increasingly booming; You can also choose to use public transport if you have a nearby visit and, thus, reduce fuel costs. At lunch time, instead of eating at an opta bar, prepare your food at home and take it in a tupper, it is an economical and healthy way to eat out.

In we advise you to make an annual budget of your expenses and income to be able to assess if you are interested in registering as an independent or, on the contrary, it will be an expense that you can avoid being hired by someone else. In this article we also give you other tips to reduce expenses by being autonomous.