What does change for your social contributions in 2021?

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In 2021, it has become more important than ever before to pay your social contributions by the deadline, we tell you why… Take into account too that thresholds adapt slightly every year: same goes for 2021. We shed light on these changes below ⬇️

That is not new: if you do not pay your social contributions on time for a given quarter, you get a penalty amounting to 3% of what you owe. If you haven’t paid your social contributions at the end of the year, the penalty increases to 7% of what you owe. In short: you better get organized before the 31st of December and, even better, by the quarterly deadlines that your social insurance funds communicated.

Still, until 2020, these penalties for late-payment were deductible, same as the social contributions. This is no longer true: you will not be able to deduct these penalties from the taxes you will have to pay in 2021. Social contributions remain deductible. One more reason to be punctual!

New social contributions thresholds in 2021

Are you a student self-employed?

  • Up to €7.021,29 a year, you do not pay social contributions,
  • From €7.021,29 to €14.042,57, you pay reduced social contributions, applicable only to the income bracket between these two amounts,
  • From €14.042,57 a year, you pay social contributions amounting to 20.5% of your net revenue, the same as any other self-employed.

Are you a full-time self-employed?

  • From your fifth quarter of activity, you pay quarterly contributions amounting to €748,83, calculated on a yearly revenue of €14.042,57,
  • In the four first quarters of activity, you pay quarterly contributions of €386,70 up to revenues of €7.251,66, of €499,22 up to revenues of €9.361,72 and €748,83 up to revenues of €14.042,57.

 Are you a complementary self-employed?

  • Up to €1.553,58 a year, you do not pay social contributions,
  • Social contributions amount to €748,83 per quarter for revenue of €14.042,57 a year.

One thing does not change: the social insurance fund sends you payment instructions for your social contributions based on your revenue of past years (if you have been self-employed for two years at least) or on minimal social provisional contributions (if you are a starter).

If you pay too little, compared to your revenue, you will face a regularisation later on. If you pay too much, you are paid back. Regularisations happen when social insurance funds learn from the tax administration what your exact revenue for a given year was. In short, you can still expect a (bad) surprise because you paid too little social contributions two or three years ago! The other way around, you will, of course, be paid back. Still, it is not the best use you can make of your cash!

Good news: you might never have to worry about your social contributions ever again. Our app calculates the exact amount you should pay, based on your actual revenues. You will find it under the “tax” screen of Accountable, together with your VAT return and total. We also remind you of your fiscal obligations, so that you never miss out on a deadline!

Ready to make 2021 optimal? Download Accountable here!

Sibylle Greindl, creating content and communities
Sibylle Greindl, creating content and communities

Sibylle is fond of words and stories. She used to be one of the testers of Accountable, back in the old days. She found the app pretty convincing and decided to join its team.
She now makes sure as many self-employed professionals as possible can access the experience she had, when starting on Accountable!

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