As we are all acutely aware, sole-traders have faced numerous challenges and an uphill battle with the government in order to secure better and fairer conditions that would benefit their businesses. Normally our Social contributions increase in January of every year, not so in 2017 as the rates were frozen according to the State Bulletin in February. However, it would seem there has been new movement in this area since the General State Budget was submitted last Friday and the government in a new twist intends to increase the minimum rate for sole-traders by 3%.
For many years business owners have been promised better conditions to allow them to initiate their activity and survive those crucial first years without the heavy burdens of high Social Security contributions and taxes. Even though some improvements have been made since 2013, we still have a long way to go especially when we compare what other countries pay towards their Social Security for the privilege of being self-employed.
Anyone who has ever run their own business is acutely aware of how they started out. Hundreds of hours spent planning and plotting, wondering how the business will take off, whether it will be successful and all the excitement and nerves that goes along with it.
When we think of summer, we imagine a blazing sun, cocktails and the typical image of a group of people gathered together on a beautiful white, sandy beach at sunset around a fire, drinking and laughing for absolutely no reason whatsoever so for once I think I have to agree with Rihanna and say that for the majority, summers are really work, work, work, work, work, work!
I have received consults and queries about the use of contracts for business and all I can say is: DEFINITELY YES!
The only way to protect your interests as well as your clients’ of course is to draft a contract that outlines the nature of your agreement. This avoids confusion, misunderstandings and basically being taken for a ride by crafty “business people”. If you are entering a long-term agreement, a contract is the way to go but even if you are doing one-off projects, some type of agreement is also advised for the same reasons.
