Many students work while studying. There are many reasons for this: Some want to gain professional experience alongside university, while others want to top up their bank accounts. And for many it is an absolute necessity because they receive no or too little Bafög and they have to finance their studies themselves. Most of these are minor jobs such as part-time jobs or student work. But there are also students who become self-employed before they graduate and take the step into freelancing. Are you also interested in this topic? Then you should definitely read on now.
When did you become a freelancer?
What you should know first and foremost: Self-employment and freelancing are not the same thing. You can be self-employed as a freelancer, but as a self-employed person you are not automatically freelancing. The tax office is very critical when it comes to classification. You must therefore belong to one of these three categories to be recognized as a freelancer:
- Catalog jobs
- Catalog-like professions
- Occupations of activity
However, the first two categories are still irrelevant for you as a student. For this you need completed training in these areas. So as long as you're not yet a doctor, musician or lawyer, you don't have to deal with this. The following careers are of interest to you:
- Copywriter
- Designers
- author
- pretty much all types of teachers (tutoring, music, etc.)
Classification can sometimes be quite difficult. The tax office often decides differently than you think. Because there is no guarantee that the classification will be correct. It is best to seek advice on this from the tax office or Federal Tax Office. Because that’s where you have to go anyway when you register as a freelancer. In this article you will find all the information on this topic.
Tax office, income tax, invoices – the accounting thing
Accounting isn't necessarily the most popular topic when it comes to freelancing - but the need still exists. Simply because otherwise you will have problems with the tax office. It is also relevant if you write invoices for your customers. After all, you want to be paid for the services you provide.
But first things first. What exactly do you need to know about accounting for a student freelancer?
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Point one: You don’t have to pay trade tax. However, you cannot avoid income tax. Also pay attention to whether you have to pay sales tax.
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Point two: As a rule, you can take advantage of the small business regulation. Then you are exempt from sales tax. But this is only possible if your turnover is less than 17,500 euros (current year). It is important that you do not make more than 50,000 euros in sales in the following year.
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Point three: You will continue to receive child benefit. Because your income doesn’t matter.
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Point four: Do you get student loans? Then you are not allowed to earn more than 5,400 euros per year. Otherwise, your income will be deducted proportionately.
- Point five: Double-entry bookkeeping is not necessary. As a rule, a normal income-surplus calculation is sufficient for students.
At first, that sounds like a lot of stuff to remember. At the beginning it is not so easy to get started with the topic of “accounting”. If you don't have a tax advisor friend on hand to get help, you should think about accounting software for small and medium-sized businesses .
What about health insurance?
First of all, it is irrelevant for freelancing whether you have family insurance, voluntary insurance or (if you are over 25) student insurance . The most important thing is that you are not allowed to work more than 20 hours per week. On the one hand, because the university would otherwise revoke your status as a full-time student and, on the other hand, because the health insurance companies would otherwise believe that you could insure yourself at higher rates. By the way, you can work more during the semester break. After all, you have lecture-free time. On the subject of health insurance, we recommend this article from jobruf.de. In it you can read everything about the differences between statutory and private health insurance.
Self-employment is not always easy
But it can definitely be worth it if you know exactly what you're getting into from the start. Of course, being your own boss is a great thing. However, you also have to take care of all the organizational things . At the same time, it is a very good opportunity to gain practical (professional) experience during your studies. Nevertheless, you shouldn't just take the step - i.e. not without sufficient planning and all the information. The best thing to do is to visit your city's (business) incubator. There are experts there who are knowledgeable in the field and can definitely give you helpful tips.
However, there are students who become self-employed before they graduate and take the step into freelancing. Are you also interested in this topic? Then you should definitely read on now.
