CHALLENGES AND ADVANTAGES OF FREELANCE WORK – A conversation between Momgotajob and Daniela Slavcheva

Freelance work with Daniela Slavcheva was one of the first topics covered by Mama Ima Rabota. This form of employment is common in certain fields such as law, journalism, and the arts, but is rarely practiced outside of them. Veselina shares that she discovered this option thanks to Daniela, while looking for a better balance between her personal and professional life. Daniela, an accountant by profession, explained the registration process and monthly obligations, and answered a range of questions related to freelance work, such as:

Is there a way to work legally if I don't want to be an employee and don't want to have my own company? How do I start working as a freelancer? Why don't accountants usually talk about this option? What are the benefits of registering as a freelance professional? What are the pros and cons?

Freelance work isn't talked about much in Bulgaria, as people tend to prefer running their business directly through an EOOD, ET, or OOD, often on the advice of accountants whose own business is bookkeeping. That said, it isn't a rare phenomenon, but it does require registration through a license, diploma, or other qualifying document.

Freelance work is an option or form of employment for people running a small or medium-sized business, seen as offering more freedom since there's less need for an accountant to handle bookkeeping. This type of work is usually considered part of the services sector (such as translation and similar fields). The advantages include: no cash register is required, 25% of income is automatically recognized as expenses without the need for supporting accounting documents, it's possible to hire someone under an employment contract, and you can choose the type of social security contributions for sick leave and maternity benefits.

For more details, you can watch the full conversation at the following link: https://www.facebook.com/impactdrive.eu/videos/3135474263371158. On our page, you can also find recordings of our other Facebook video conversations.

Here are some of the questions Daniela answered during the conversation:

momgotajob: How does one register as a freelance professional?

Daniela: There are two main steps to starting work as a freelancer. The first step is registering in the BULSTAT register, issued by the Registry Agency. The next step is submitting a declaration to the National Revenue Agency (NAP) stating that you're starting to carry out activity. Once you begin working, you need to start declaring, on a monthly basis, the amount on which you're paying social security contributions.

momgotajob: It's important to mention that the entire registration process related to freelance work, across all agencies, can be done entirely online.

Daniela: That's right, there's no need to go anywhere in person at all. You can use your PIC number or an electronic signature, it doesn't matter which. The difference is that the PIC is free, while an electronic signature comes at a cost. However, there's also a "cloud" electronic signature, which is free as well.

momgotajob: Another advantage of freelance work is that 25% of your income is automatically recognized as an expense.

Daniela: That's right. Here we should also mention Personal Income Tax. You deduct that 25% from your income, and you pay your social security contributions on the remainder. Then, the difference from the remaining 75%, minus your social security contributions, gives you the Personal Income Tax, which must be paid at the end of the year by filing a tax return.