A major political battle is unfolding in Spain over the government’s new proposal to increase social security contributions for self-employed workers (autónomos). Against this backdrop, a statement by Elisa Arias, a Spanish self-employed worker living in the UK, has gained wide attention:
“What’s happening in Spain is armed robbery!”
Tax allowance: In the UK, self-employed workers do not pay income tax if their annual earnings are below £12,570.
Social contributions: Class 2 National Insurance contributions are now optional for those earning less than £6,725 per year. Moreover, those earning up to £12,570 automatically receive credits towards their pension and contribution record without making any payments.
VAT: In the UK, VAT does not need to be paid until annual turnover exceeds £90,000, which is several times higher than the Spanish threshold.
“What’s happening in Spain is armed robbery!”
Tax allowance: In the UK, self-employed workers do not pay income tax if their annual earnings are below £12,570.
Social contributions: Class 2 National Insurance contributions are now optional for those earning less than £6,725 per year. Moreover, those earning up to £12,570 automatically receive credits towards their pension and contribution record without making any payments.
VAT: In the UK, VAT does not need to be paid until annual turnover exceeds £90,000, which is several times higher than the Spanish threshold.
