YTK is an unemployment fund for the employees so as an entrepreneur you will not be able to join as a member to YTK. However, you might be in a situation where you have joined YTK while having been employed elsewhere and started entrepreneurship while already a member. You are not entitled to earnings-related daily allowance in this situation, if you are considered a full-time entrepreneur in your business. The decision of the full-time nature of the entrepreneurship is always done by the TE offices. When assessing the full-time nature of the entrepreneurship, the required amount of work is the key. The entrepreneurship is seen as full-time, if the amount of work it requires is so large that it would hinder the acceptance of full-time employment. If you start an entrepreneurship while unemployed, the TE offices as a rule considers the entrepreneurship to be full-time.
If necessary, you should be able to prove by the usage of your time that it is not full-time entrepreneurship. You can show your entrepreneurship is part-time by accepting a full-time employment as an employee for at least 6 months, an employment that is not related to your entrepreneurship. Network marketing work is the most significant exception to this full-time rule. The amount of work required by network marketing work is often not a hindrance for accepting other full-time employment.
Part-time entrepreneurial activities
Labour authorities issue a binding statement on the claimant's engagement in entrepreneurial activities and on whether the activities are considered full-time or part-time. When labour authorities assess the quality of the activities, attention is paid to the amount of work rather than the income earned. Unprofitable business activities cannot be compensated with unemployment security but, on the other hand, even profitable business activities are not considered full-time unless labour authorities see the amount of work to be enough to present a hindrance for accepting full-time employment.
After labour authorities have investigated a person's entrepreneurial activities and considered them part-time in their statement, the person can be entitled to adjusted allowance. As income affecting the allowance, the details of taxation build the basis whenever possible. The details of the verified taxation cannot be used if the claimant has only begun with his/her entrepreneurial activities, or if the activities have changed drastically after the latest verified taxation. Even when the details of the verified taxation cannot be used, the fund aims to assess the income according to the rules of taxation.
All self-employed people are obligated to keep books, where the assessment of the income is based on the presented profit and loss accounts. With regard to self-employment which is so small-scale that it can be considered independent income earning (mostly network marketing), the person is obliged to a keep a so-called note book with details on receipts and expenditure in a chronological order. In these cases, assessing the income that influences the adjustment is based on the details of the note book. These details of receipts and expenditure are, then, assessed according to the rules of taxation.
Short term entrepreneurship
Earnings-related daily allowance can be paid to an entrepreneur, who is employed in entrepreneurial activities for a maximum of two weeks. In these situations the employment offices do not monitor the entrepreneurship periods and the full-time employment in these situations will not hinder receiving unemployment benefits. The unemployment fund checks the duration of the employment period based on the job-seeker’s notification or other available clarification (for example contract of commission). If we find out the applicant is employed as an entrepreneur for over two weeks, we ask for an employment political statement in the matter. In these situations the employment offices investigates the matter as usually and gives their statement from the beginning of the employment.
Income from a short tem entrepreneurship is taken into account in payments of earnings-related daily allowance. If preconditions are met, adjusted daily allowance can be paid during short-term entrepreneurship.
The net income of farming during the tax year is the difference between the revenues received during the tax year as monetary or as benefits with monetary value and the expenses resulting from gaining and maintaining income. Farming income is divided into capital income and earned income, the latter of which is taken into consideration as income in adjustment. The details of taxation show the amount of capital income and earned income separated.
Taxation of income from forestry will, as of the year 2006, take place as taxation of income derived from the sales of timber. In this form of taxation, the income is always considered to be capital income and is thus not taken into consideration in adjustment. The taxable proportion of logging and hauling of timber is, however, earned income and, as such, included in the adjustment calculations.
For tax purposes, logging and hauling refers to work efforts to prepare timber for sale. If the sale concerns other than farm forest, the entire value of this work is considered taxable. With farm forest, the proportion of logging and hauling that exceeds 125 cubic meters is taxable. The tax free proportion is given per farm, and the taxable proportion is divided as earned income between those carrying out the work in proportion to their work input.