You what! ??!

Posted on 2006/07/19 14:40:41 (July 2006).

[19th July 2006]

Apart from being moderately busy at work today (a pleasant change), I am pressing on with the "open my own business" story. There is so much information that I have to collect and to understand, even if I haven't got a contract in my hands I must start this kind of work.

One of the things that I had to do today is to understand what happens with the pension scheme. Normally you would have to queue ages at the pension office to ask (and probably NOT to get a decent reply), but I was lucky and thanks to some connections of mine I spoke directly with a director of the agency.

The good news are that ....

well...

Ok, there are no good news.

Basically since I will work by myself I will have to pay something like 20% of what I INVOICE for the pension scheme. After that I will have to pay taxes, basically if I am lucky if I earn 100 I will pay more or less 65 in taxes+pension and the rest will be my "wage".
As if this was not enough, the pension scheme of a self employed person is the most expensive, but is also the one that yields the smallest pension when (if) you get it...

Basically it's just another tax, and even though I haven't started working by myself, I already hate the "thief" state...

Oh well, this aside the day has been pretty uneventful, the new salesman that came yesterday is away, which is good as I don't have to attend to him directly, and weather is turning rotten again.

I will be off to Florence tomorrow for the weekend, let's hope is a good resting holiday!

Yes, that does sound pretty steep for your pension. In the UK you can opt to pay two types of National Insurance to protect your Retirement Pension from the state when we are self-employed (and not an employee of our own company).

As I recall the "Class 2" is roughly 9% of your gross. "Class 3" is a kind of "with profits" job, but I don't think it enhances the Retirement Pension bit, just other benefits.

When I was self-employed I just paid the "Class 2".

Posted by Nigel at 2006/07/19 15:44:37.

Well, the more I get to understand the system in Italy, the more I am not surprised that there are so many people prepared NOT to pay taxes. It is true, us italians are pretty bad at paying taxes, but on the other side the fiscal pressure is stupid! I mean, more than HALF of what I earn disappears... Oh well.. I'll move to the Cayman islands soon

Posted by Lox at 2006/07/19 15:46:54.

If there was a tax on intelligence in France, a good half of its population would be exonerated...

Posted by Sheri at 2006/07/19 20:06:54.

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