Working freelance while studying offers numerous advantages, including flexible working hours and the much sought-after extra money in your bank account. However, there are still a few points you should consider, especially when it comes to taxes and insurance. Everything you need to know about part-time freelancing.
The advantages at a glance
Freelancing and studying go together almost perfectly, they are predestined for each other. Why is that? Four arguments: money, experience, networking and, as the icing on the cake, flexible working hours. As a freelancer, you can earn a lot of money alongside your studies – and not through typical student jobs such as waitressing. Instead, you already gain concrete experience in your field of expertise and can directly apply the knowledge you gained during your studies. In addition, you will acquire an entrepreneurial mindset right from the start.
Through all of this, you build up a solid network at an early stage, from which you can benefit for many years. Along the way, you can try out and realize yourself and your ideas without your entire livelihood immediately depending on it. And on top of that, as a freelancer you can divide up your work very flexibly and adapt it to your schedule, learning and exam plan. Of course, this also applies to the semester break. Just saying…
Taxes and finances
Speaking of money: Even as a freelancer, you have to register with the tax office within four weeks of starting your business. The keyword here is income and sales tax. However, you only have to pay the former as soon as your annual profit exceeds the magic 9,000€ limit. With regard to sales tax, you will most likely benefit from the small business regulation if you work as a freelancer as a sideline during your studies.
In this case, no sales tax is due. However, if you earn more than €17,500 per year, this is no longer the case and you have to submit an income statement. Once a year you also have to make your tax return – this may be annoying, but it can save you money. You can find tips on how to do this here. There is certainly another word that lights up in your head in this context: Business registration.
Whether you need to register a trade depends on whether your activity is classified as a liberal profession.
Health insurance as a freelancer during studies
Similar requirements apply here as for conventional part-time jobs during studies. Even as a freelance student you can remain a member of the family insurance. However, the earnings limits (which vary from health insurance fund to health insurance fund) must be observed and your working hours may not exceed 20 hours per week.
If you earn more or work more, you must insure yourself.
