Self-employed accounting books: New features for 2020.

In this blog we will see the new regulations regarding the accounting books that self-employed individuals must prepare.

The new Order HAC/773/2019 regulates the keeping of the registers in the Personal Income Tax as well as the new format of the IRPF register book of the self-employed from the 2020 financial year.

WHAT ARE THE REGISTER BOOKS FOR THE SELF-EMPLOYED?

The books of income and expenses are the records of expenses and income that allow us to have an overview of the situation and the economic progress of the economic activity.

The Personal Income Tax regulations, specifically section 4 and subsequent sections of article 68 of the Personal Income Tax Regulations, approved by Royal Decree 439/2007, specifically indicate the obligation for self-employed individuals to keep records of expenses and income.

WHAT ARE THE NEW DEVELOPMENTS IN THIS AREA FOR THE YEAR 2020?

· Regarding personal income tax and the accounting books of the self-employed, in 2020 it will be mandatory to include the tax identification number of the other contracting party, both in the sales and income books, as well as in the purchases and expenses books.

· The withholding of personal income tax and its amount must also be recorded in the sales and income ledger and, in the purchases and expenses ledger, the total price, the concept of the deductible expense and, if applicable, information on the withholding must be included.

Note: The Tax Agency may require all self-employed individuals/business owners, upon prior request, to submit their accounting records in Excel format, ensuring compliance with all requirements stipulated in the Personal Income Tax regulations. Failure to comply may result in penalties and/or tax assessments by the Tax Agency.

ARE ALL SELF-EMPLOYED WORKERS OBLIGATED?

All self-employed workers are required to keep records of income and expenses; however, these new regulations will not affect all self-employed workers equally, and not all self-employed schemes operate in the same way.

TYPES OF SELF-EMPLOYED SCHEMES:

1. Simplified Direct Estimation: You must keep books of sales and income, purchases and expenses, and investment assets.

2. Normal Direct Estimation: the company's accounts must be kept in accordance with the General Accounting Plan.

3. Objective Estimation or Modules Regime: You must keep the register of investment assets, when you deduct amortizations; and the sales and income register, when you calculate the net income of your activity taking into account your volume of operations.

Finally, if you would like more information or need to prepare the accounting records for your business activity, please do not hesitate to contact us.

• About
• Latest entries

Francisco Romero

Tax and accounting consultant at Àmbit Assessor

With a degree in Business Administration and Finance, he combined his work as a consultant in the tax and accounting department of Gestart Assessores with his studies for ten years, primarily a degree in Business Administration and Management from the University of Barcelona. In March 2017, he joined Àmbit Assessor, SL as a tax and accounting consultant.

Latest posts by Francisco Romero (see all)

• ANNUAL TAX CONTROL PLAN 2021 - February 17, 2021
• Self-employed accounting books: New features for 2020 - February 12, 2020
• The Reactivation of the Catalan Non-Productive Assets Tax - May 22, 2019