In this article we will consider all types of reporting for individual entrepreneurs. Let's figure out what kind of reporting needs to be prepared every month, quarter or year. You will also learn how to properly prepare reports, where and when to submit them.
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All types of reporting for individual entrepreneurs
After registering an individual entrepreneur, there is an obligation to keep records of activities, timely submission of reports and payment of tax payments according to the deadlines established by the legislator.
Reporting can be:
- accounting;
- tax;
- statistical;
- and the one that is donated to funds (social insurance and pension).
The frequency of its delivery is month, quarter or year.
How many and what reports an individual entrepreneur is required to submit depends on the chosen tax system. Most of them are on the general system (OSNO), so when registering an individual entrepreneur it is chosen least often.
When combining tax regimes, for example, simplified taxation system and PSN, reports are submitted using both systems. An individual entrepreneur with employees, in addition to the main types of tax reporting, submits those filled out from payments in favor of employees.
Registration of employees
An individual entrepreneur must understand whether he will need workers even before he begins his activities. The law imposes quite strict requirements on the employer. As always, if they are not followed, you can expect fines and hassle, and the fines here are significant - tens of thousands of rubles. The content itself (official salary, payment of taxes and contributions), registration and reporting for the employee is a separate big topic, but you can’t do without it. There are two options for registering an employee: under an employment contract and under civil law.
A civil law contract can be concluded one-time, for the provision of any services or work, but if you enter into such an agreement with the same person for the same activity, then the tax authorities may recognize the contract as an employment contract. Based on the above, if you If you cannot operate without hired labor, your employees must be properly registered. An individual entrepreneur has the same responsibilities as an employer as a legal entity. Just like in an enterprise, you need to conclude an individual employment contract with the employee and make an entry in his work book.
Individual entrepreneur reporting on OSNO
On the general system, two reports are submitted to the local Federal Tax Service:
- VAT;
- 3-NDFL.
VAT returns are sent every 3 months, before the 25th day of the month following the end of the quarter. The report form is submitted according to the order. Federal Tax Service dated October 29, 2014 No. ММВ-7-3/ [email protected] as amended. dated 08/19/2020 (Federal Tax Inspectorate for No. ED-7-3/ [email protected] ).
The 3-NDFL declaration is submitted before April 30 after the end of the reporting year. Its form was approved by order of the Federal Tax Service dated August 28, 2020 No. ED-7-11/ [email protected]
Individual entrepreneur reporting on the simplified tax system
An individual entrepreneur on the simplified tax system submits a declaration for 2021 in the form approved by order of the Federal Tax Service dated February 26, 2016 No. ММВ-7-3 / [email protected] by April 30 of the year following the reporting year. Only those sections that relate to the selected tax system are completed. The report for 2021 is submitted using a new form - the form was approved by order of the Federal Tax Service dated December 25, 2020 No. ED-7-3 / [email protected]
If an individual entrepreneur pays tax on income (6%), then he reports on it in the appropriate section, and the remaining sheets of the declaration are not filled out. We do the same if tax is paid on profit (15%).
If there were turnovers under VAT during the quarter, then at the end of the quarter a corresponding declaration is submitted.
Individual entrepreneur insurance premiums 2021
Perhaps the biggest financial burden at the very beginning of an individual entrepreneur’s activity, when the expected income is just numbers on paper, will be the need to pay annual insurance premiums.
Fixed payments for individual entrepreneurs 2021 (insurance premiums) are not taxes. These are your contributions to your future pension and compulsory health insurance. In 2021, this amount is 40,874 rubles, provided that the annual income from the business does not exceed 300 thousand rubles. If the amount of income that an individual entrepreneur receives is greater than this limit, then another 1% of the income received is added to the fixed amount.
Since 2013, so-called grace periods for non-payment of insurance premiums have been in effect. You have the right to be exempt from these payments for periods of military service upon conscription, caring for a child up to one and a half years old, caring for a group I disabled person, a disabled child or a person who has reached the age of 80 years. Moreover, it is impossible to conduct business during this period. To receive an exemption from paying contributions, you must apply to your tax office where you are registered.
But if you work somewhere under a work book or a civil servants’ agreement, and your employer makes salary insurance contributions, then the obligation to pay insurance premiums as an entrepreneur still remains with you. And only if your individual entrepreneurial activity is terminated and your data is excluded from the Unified State Register of Individual Entrepreneurs, you will no longer be accrued the indicated amounts.
What kind of reporting does an individual entrepreneur submit with his employees?
Individual entrepreneurs with hired employees report on taxes accrued from their wages to the Federal Tax Service, Pension and Social Security Funds. Reporting is submitted monthly, quarterly and once a year.
Monthly reports
Form SZV-M was approved by the Pension Fund of the Russian Federation dated 02/01/2016 under No. 83p. The report is submitted to the Pension Fund by the 15th of the next month.
The SZV-TD form was approved by the Pension Fund of the Russian Federation dated December 25, 2019, No. 730p. The report is also submitted to the Pension Fund, but at different times, depending on personnel changes. If an employee is transferred to another permanent job or has written an application to switch to an electronic format for maintaining a work record book, the report is submitted by the 15th of the next month. If the individual entrepreneur hired/dismissed an employee, the form must be sent to the Pension Fund no later than the next working day. If there are no personnel activities during the year, the report is submitted by February 15 of the following year.
Quarterly reporting
Quarterly reports that individual entrepreneurs and employees must submit include the calculation of insurance premiums (RSV), form 6-NDFL and 4-FSS. The first two reports are submitted to the tax office, the last one to the social insurance fund.
The DAM report was approved by order of the Federal Tax Service dated October 15, 2020 No. ED-7-11/ [email protected] It must be submitted by the 30th day of the month following the expired quarter. Thus, for the 1st quarter of 2021, individual entrepreneurs are required to submit reports by 04/30/2021.
Form 6-NDFL was approved by order of the Federal Tax Service dated October 15, 2020 No. ED-7-11/ [email protected] The deadline for its submission is the last day of the month following the reporting quarter. At the end of the year, the report is sent before March 1.
Form 4-FSS was approved by order of the FSS dated September 26, 2016 No. 381 (as amended on June 7, 2017 No. 275). In paper form, the report is submitted by the 20th day of the month following the billing quarter, in electronic form - by the 25th.
Important! Despite the fact that all these reports are submitted quarterly, advance tax payments from employee salaries must be made every month. For example, for February they must be paid before March 15th. Advance income tax payments are made the day after salary is paid.
In order to correctly make a quarterly report to the tax office, use any sample for filling out reports. In the same way, you can quickly prepare a quarterly report to the social insurance fund.
Reporting for the year
Previously, at the end of the year, the individual entrepreneur submitted two reports - 2-NDFL and SZV-STAZH. For 2021, income tax must be reported using the new form 6-NDFL. It combined information from two previous reports: certificates 2-NDFL and 6-NDFL.
Form 2-NDFL is issued only to employees - upon application or mandatory, for example, upon dismissal. The reference bank can be found in Appendix No. 4 to the Federal Tax Service order No. ED-7-11 / [email protected] dated 10/15/2020.
SZV-STAZH is submitted to the Pension Fund before March 1 of the year following the previous one, according to form No. 507p, approved by the Resolution of the Board of the Pension Fund of the Russian Federation.
PSN and Unified Agricultural Tax
Entrepreneurs using the patent tax system do not report income, but must enter information about it in the income book. This is necessary to control the income limit, since receipt of revenue exceeding 60 million rubles per year deprives the individual entrepreneur of the right to use the patent system. Due to the absence of the need to report income, individual entrepreneurs do not file a declaration on PSN.
Individual entrepreneurs who pay the unified agricultural tax fill out and submit a declaration once a year. Deadline: no later than March 31st. If there was no income in the first year of application of the Unified Agricultural Tax, entrepreneurs submit a zero declaration. However, based on the results of the second year, it is necessary to indicate income in the declaration. Otherwise, you will have to switch to another special regime (clause 4.1 of Article 346.3 of the Tax Code of the Russian Federation).
Reporting when opening an individual entrepreneur
After registering an individual entrepreneur, you must select a suitable taxation system and write an application for its use. By default, the general tax system is applied to a newly created individual entrepreneur.
A registered individual entrepreneur will submit the first reports to the tax office according to the deadlines that we discussed above, depending on the tax system used. As soon as the new individual entrepreneur has employees, you need to submit reports on them as well.
Important! Regardless of what day of the quarter you opened an individual entrepreneur, we submit reports based on the results of this quarter.
Is a seal required?
By the way, this is another question that entrepreneurs face after registration: how necessary is a stamp?
An unambiguous answer to this question is contained in the letter of the Ministry of Finance of the Russian Federation No. 03-11-02/85 dated July 30, 2008. Without going into the details of the letter, we will say that individual entrepreneurs do not have such an obligation. However, legal requirements are one thing, and running a business is another. And in general, having a seal can be useful for an entrepreneur. For example, when opening a current account, an individual entrepreneur may encounter bankers who will require its availability. To get around this problem, you can simply go to another bank (but the conditions there may not be as attractive). Activities that involve cooperation with legal entities require signing a large number of different documentation: contracts, acceptance certificates, invoices, etc. Instead of a seal, an individual entrepreneur can affix a signature to documents.
But you will have to spend time convincing counterparties that the absence of a seal is legal. And here it is likely that a large company with a complex accounting system will refuse to continue cooperation.
You need to be prepared for the fact that the status of an individual entrepreneur in the eyes of counterparties will decrease somewhat. In addition, the seal imprint on documents creates additional protection against counterfeiting.
For entrepreneurs providing services to the public and operating without a cash register (CCM), it is necessary to use strict reporting forms (SRF). In accordance with the Decree of the Government of the Russian Federation dated May 6, 2008 No. 359 “On the procedure for making cash payments and (or) settlements using payment cards without the use of cash register equipment,” clause 3 specifies the requirements for a seal.
Failure to comply with these requirements may result in a significant fine, which you can try to challenge in court. It is quite possible that the court will be on the side of the entrepreneur. But how much should you estimate the time and nerves spent?
The procedure for preparing and submitting reports for individual entrepreneurs
When preparing reports, you can use a printed form and enter data into it manually, always with black ink, or fill out the form using special programs. If there is an error in the submitted reporting, it can be corrected. To do this, the report is filled out again, but with the correct numbers - the correction number (001) is indicated on the title page - and sent to the tax office/funds.
Important! If, as a result of the changes made, the tax will be subject to additional payment, you need to find out whether there is an overpayment. If there is no overpayment, we first pay the missing tax and only then submit updated reporting. This way you can avoid the 20% fine that is assessed for tax not paid on time.
There are several reporting options:
- can be submitted in paper form;
- or send reports electronically.
The first option is suitable for individual entrepreneurs without employees and those with less than 25 employees. The exception is RSV and 6-NDFL. These reports can be submitted in paper form only with an average number of up to 10 people. Reporting can be submitted personally or through a representative by issuing a notarized power of attorney for him, or by sending it by mail with a list of the attachments. The day of reporting in this case will be the day it is accepted by the postal operator.
Important! The VAT return is sent to the tax office only in electronic form.
The reports submitted by the individual entrepreneur must be signed by him personally or by a representative, and the date of preparation must be indicated. All reports are sent to the fiscal authorities at the place of registration of the individual entrepreneur.
Important! Failure to submit tax reports on time may result in penalties. The individual entrepreneur will also have to pay a fine if he does not submit reports to the funds in a timely manner.
How to submit tax returns online
Filing reports without leaving home is tempting, but to take advantage of this opportunity, you need to be prepared.
1
It is necessary to obtain the required qualified electronic signature from a certification center accredited by the Ministry of Communications.
2
Select a telecom operator and conclude the required contract.
3
Buy the required software that is compatible with the software installed in your tax office. This security can usually be purchased from your telecom operator.
4
If you submit reports through the tax website, then an agreement with the operator is not needed, but you will need to obtain an identifier on the Federal Tax Service website. You will have to track the fate of the reports through your Personal Account on the tax website (this is a different service).
Individual entrepreneurs have the opportunity to submit reports through the free service “Free reporting to the Federal Tax Service.” But you will need to pay for a notary service to certify a power of attorney for submitting reports via telecommunication channels (a sample is available on the service itself).
So, individual entrepreneurs have a choice - to submit reports through telecommunication channels or directly through the tax office website. Many people choose the first option, since the tax service settings turn out to be complicated. In addition, such services often provide prompt advice when preparing and sending reports.
