A self-employed person is defined as a person who carries out a service or work in favor of a client against payment of a fee and who has total freedom in determining the methods, timing and place of work.
Self-employment is governed by Article 2222 of the Civil Code and subsequent, is classified into two modes of operation: occasional self-employment and regular or continuous self-employment. In the first case, it is possible to carry out one's work without the need and obligation to open a VAT number, however it is necessary to comply with some regulations governing this way of working.
Here is a short guide that explains the functioning of occasional self-employment, who are the occasional self-employed workers without and with VAT, what are the differences and all the practical advice to be in fiscal compliance.
The profile of the occasional self-employed worker without VAT number
All those who carry out self-employment in a sporadic and not professionally organized way can lend their work in the absence of a VAT number. The legislation establishes that an occasional self-employed worker is not required to open a tax position and for this reason cannot issue an invoice. However, after each service he is required to issue a payment receipt on which a withholding tax is applied.
Occasional work can be regulated by a contract that defines the working methods, timing and type of work. Also in this case it is necessary that the self-employed worker respects certain rules:
- Occasional work has a duration limit of 30 days in the course of a year and must not be carried out continuously / regularly.
- The annual income from casual work cannot exceed 5,000 euros.
Differences between occasional work and occasional self-employment
It often happens to confuse the concepts of occasional self-employment and occasional work, two fiscally different ways.
Occasional work is an activity comparable to ancillary work, rendered through a specific contract or the family booklet.
Occasional self-employment, on the other hand, does not represent an organized profession, so it is not characterized by elements such as collaborators, employees, offices or website relating to the activity carried out.
Occasional self-employed worker: when and how it is protected
Occasional self-employed workers are not entitled to compensation relating to maternity, family allowance or parental leave, sickness, unemployment, accidents or occupational diseases.
Owners of Naspi or Dis-Coll can carry out occasional work without losing unemployment compensation, however it is important not to receive wages exceeding € 4,800 per year.
Occasional self-employment without VAT: contributions and taxation
The occasional self-employed worker with annual wages of less than 5,000 euros is not obliged to pay INPS contributions. Otherwise, it is necessary to register with the INPS separate management and contribute proportionally to the payment of social security contributions.
As reported in Article 67, letter l of the TUIR, an occasional self-employment activity falls within the category of other income. The taxable income of the occasional worker is obtained with the difference between the total compensation earned in a given tax period and the expenses related to the production of the work.
Occasional self-employed workers benefit from a tax deduction that cannot be combined with other deductions for compulsory social security contributions, up to a limit of 4,800 euros.
All income derived from occasional work must be declared via the 730 form or via the Income form. Only if the remuneration does not exceed 4,800 euros per year can the occasional self-employed worker avoid the tax return.
Received casual work
When a self-employed worker without a VAT number receives the fee, he must issue a receipt or withholding tax, which certifies the payment by the customer. In the event of an amount exceeding € 77.47, a revenue stamp of € 2.00 is also applied.
On the receipt for occasional self-employment, it is necessary to indicate the gross amount of the service, the withholding tax of 20% and the net amount.
The client acts as withholding agent and pays the withholding tax on behalf of the self-employed worker, with the obligation to certify compensation and withholdings through the Single Certification to be issued the following fiscal year.
Occasional self-employment: obligation of prior communication
Legislative Decree 146/2021 provides for the obligation to notify the National Labor Inspectorate in advance of the start of the activity of the subjects classified as casual self-employed workers. Prior communication is the responsibility of the clients and is aimed at counteracting the use of occasional work as a contractual form created to disguise a subordinate employment position.
Communication can be made through different channels:
- Through the government portal servizi.lavoro.gov.it;
- By sending the appropriate communication model via certified e-mail;
- Via SMS following the guidelines available on the online portal;
- Through app.
Only in the presence of a malfunction of the computer systems is it possible to send the communication by fax.
Failure to notify the customer in advance provides for an administrative penalty of a minimum amount of 500 euros up to a maximum amount of 2,500 euros.
New Employment Services application for occasional self-employed workers
The communication on occasional self-employed workers can be carried out through the new application of Servizi Lavoro, active since last March 28, 2022.
The new website Servizi Lavoro is accessible via CIE or SPID credentials. In order to be considered valid, the prior communication on the occasional self-employed worker must contain the following information:
- Identification data of the customer and the provider;
- Place where the performance will take place;
- Description of the activity;
- Start date of the service and time frame within which it will end (from 7 to 30 days max);
- Compensation value if established at the time of the appointment.
If the relationship does not end within the period of time indicated in the communication, the client is obliged to proceed with a new communication.
If you want more information on how to set up an occasional service you can always search for a commercial consultant among our professionals.
