What to do for several activities that fall into both areas?
If you are pursuing several self-employment activities , which fall under both the liberal professions and a trade, one must first see whether these are easily distinguishable from each other. So, if you work as a lawyer and sell certain products in an ancillary business, you will incur income from self-employment and business. For this you should make your own bookkeeping for each area and best lead two different accounts. The useful tools that come with a Kontist account, make it easy to keep track of these activities. And fast, easy and using the Kontist app to use. If your two or more activities fall into one area, all income generated from them is shared in accounting.
Self-employment is generally a form of gainful employment that is performed independently by an individual who remains an independent entity. The self-employed person has full freedom of choice over work and conducts their own customer acquisition, self promotion and books.
As a liberal profession freelancer, you independently practice a scientific, artistic, teaching, literary, educational or legal, economic and tax consulting activity. There is no trade. You are subject to income tax and report your activity to the tax office.
As a freelancer you are self-employed and carry out orders from various companies. Often regulated by a service or work contract. But you are not bound by instructions and can freely choose your working hours and place of work.
This is a topic that causes confusion over and over again for new freelancers, but the differentiation is so important due to the amount of time and money it can cost you if you get it wrong - not to mention a harsh letter from the tax department that will scare the life out of you. Hopefully, in reframing these terms, you’ll have a better understanding of the best steps you can take, or plan for, as your journey of self-employment unfolds!