What is your take-home pay? – text version of film

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When you are paid a salary by your employer, the whole amount in your account is your money. This is not the case for those who are self-employed. Self-employed persons must also pay VAT, tax and social security contributions. In addition, the business has costs. Below we explain what you must pay and how much is left in your pocket.

You are a sole trader and work, for example, as a web designer. This month you have made four different websites and the invoiceable amount for all the jobs is SEK 40 000. You need to add 25 percent VAT on top of the SEK 40,000 when invoicing. When you get paid, SEK 50,000 will be paid into your account. The VAT amount is not your money and must be paid to the Swedish Tax Agency. In this case, the amount is SEK 10,000. Of the remaining SEK 40,000, you must pay variable costs, that is, the cost of purchased goods. To make websites, you have purchased pictures from an image bank, some fonts and a new computer programme at a cost of SEK 5,000. You now have SEK 35,000 left in your account.

You also have to pay fixed costs, that is, costs that remain the same regardless of the volume of sales. For example, this could be the cost of a phone, computer, rent of premises, and accounting. In this case, a total amount of SEK 5,000 per month. There now remains SEK 30,000.

Self-employed persons pay taxes and social security contributions, usually around 40 %. 40 % of SEK 30,000 is SEK 12,000. The remaining SEK 18,000 is your take-home money.

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Responsible: Swedish Agency for Economic and Regional Growth

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