Self-employed may deduct business meals Supreme Court ruling - Self-employed persons may deduct business meals. At least, that is the interpretation made by the lawyer Andrea Torner, of the office of online advice Declaring, in Self-employed and Entrepreneurs, after the judgment 458/2021 of the Supreme Court, which establishes jurisprudence.

Verbatim, the sentence says: "Expenses credited and accounted for are not deductible when they constitute donations and liberals, such being understood as provisions of economic significance, capable of being accounted for, made free of charge; however, those provisions that conceptually have the consideration of accounting and accounting expense will be deductible.- free-of-charge conducted by the public relations with customers or suppliers, which according to the uses and customs are conducted with respect to the personnel of the company and carried out to promote, directly or indirectly, the sale of goods and provision of services, and all those that are not expressly covered in this enumeration respond to the same structure and are correlated with entrepreneurial activity aimed at improving the business result, directly or indirectly, present or future, provided that they do not have as audience members or participants”.

Self-employed may deduct business meals Supreme Court ruling

Faced with this, the aforementioned lawyer ensures that " the self-employed can deduct any expense derived from meals, dinners or even gifts, to customers or suppliers, without the need for that action to result in an income for the justified business”. This implies, Torner continues, that the Supreme Court is " flatly rejecting the theory that the Treasury has always applied that, for an expense to be deductible, it must be directly related to an income”.

Self-employed may deduct business meals Supreme Court ruling: For the lawyer, the setting of case law by the Supreme Court implies a "great advance “for all self-employed workers, since”many of the expenses they have are indirect costs, but, after all, they are costs for the business".

Self-employed may deduct business meals Supreme Court ruling

After the judgment, it considers that the self-employed, before any inspection, they will only have to prove that the person they have invited to eat, or to which they have sent a gift, is someone who collaborates with him or with whom he is considering starting a business (although this finally does not take place). And, to prove it, he explains, it would be worth, simply, “with an email, a WhatsApp message, a phone call or having his name appear in your wallet as one of the regular customers”.

Self-employed may deduct business meals Supreme Court ruling: Despite this step forward, José Castaño, member of the Commission of Fiscal Studies of the General Council of Social Graduates of Spain, argues in Self-employed and Entrepreneurs that providing facilities so that self-employed can deduct expenses derived from their activity is a "pending task of the Tax Agency". At present, he stresses, "it is still practically impossible to deduct expenses as normal and necessary for the activity as the vehicle, the mobile phone or the work clothes".

Self-employed may deduct business meals Supreme Court ruling

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What to do with the money you over-save or under-spend for greater stability

Saving every month is an achievement that not many achieve.

If it is already difficult to achieve savings for many people because they do not have adequate financial planning with their home economy, it is even more complex that you get to harvest more capital than you had initially planned.

Is this possible? Of course I do. When it comes to budgeting, if it's realistic, it's likely that some months you have a surplus of money that you didn't count on. For example, this has happened a lot throughout the pandemic, as spending on social activities has been greatly reduced.

Cutting expenses to a minimum means you can set aside more money than you previously anticipated. And this is something that is very common in many individuals. Frugal living makes financial health better, which favors habits with money in a temporary, long-term approach.

Hence, there are people who wonder what can be done with the money that they have saved more or that they have spent less, as a result of events such as the coronavirus crisis. That is, what alternatives are available to you and, of them, what is more advisable.

So, there are 3 main alternatives that you can take into account.

Keep the money, but do nothing with it. These are the alternative preferred by those who have no confidence in financial institutions or in investing in certain products.

Although the chances of losing this capital are very low, it must be borne in mind that money loses value over time due to the effect of inflation. If you have 5,000 euros with an inflation of 2%, you will have lost a buying power of 100 euros. Therefore, storing wealth without more is quite harmful.

Spend that extra savings. Indeed, the longer you have money standing still, the less the economic environment, which is based on consumption, will become more dynamic. If you choose to treat yourself with that capital has to be done without this being a waste. For example, spend it on lasting things, save a part, not buy anything that is expensive to maintain, use it in interesting experiences, or share it with family and friends.

Invest. The last way is to enter the world of investment to try to get returns that make that extra capital that you have captured can grow more with the passage of time. There are many possibilities within that field, although it is of interest which are the ones that best fit you.

Experts recommend investing as the main formula to make those savings more than you have achieved. In this sense, investing in the stock market is one of the riskiest decisions, since no forecast is certain, but also one of the possibilities that can provide you with the most return. Everything is to study it and if it is with the help of an expert better than better.

Something safer is to focus on contributing to investment funds. These are managed by specialists and can be better tailored to the level of risk you are willing to take on. It is a very good option to take advantage of the money you have saved more in the long term.

Employment pension plans are another tool within the mechanisms that are within your reach. If you are looking to save for retirement, this is one of the best instruments. They also have tax advantages.

This chapter includes the roboadvirsors. Automated investment platforms, which work through algorithms. They are managed entirely online, according to the principles of passive management, which provide for the construction of a portfolio of securities that replicates the behavior of a certain benchmark index, without the intention of exceeding it at any time.

On the other hand, another possibility is to bet directly on fixed income. It is a safe investment based on debt issues issued by states or companies. It should be borne in mind that the returns are not very high, and that, although it is one of the safest investments, it is not without risk.

Meanwhile, investing in real estate or creating a business are two possibilities to keep in mind. It may be a good time to buy because of the low price of housing. However, we must take into account two risks: the loss of value that the property can suffer and the insolvency of tenants if they rent it.

Ultimately, savings insurance or 5 Savings plans are other options. Many of these products (individual systematic savings plans, unit linked, provident insurance plans, life annuity insurance and individual long-term savings insurance) make it possible to build up capital with small periodic contributions (e.g. 50 euros per month), which gives them a lot of flexibility, and to make other larger contributions.