Tax as an umbrella employee
As an umbrella employee you are taxed exactly like a regular employee. Employer contributions of 31.42% and preliminary income tax, normally 30%, are deducted from the invoice amount before your salary is paid, and VAT is reported by the umbrella company. You need no F-tax registration and file no extra tax return beyond your ordinary personal one.
The four main tax components
Employer contributions (31.42%) This is the employer contribution deducted from your invoice to finance, among other things, pensions. It's the same rate as for regular employees.
Income tax (30%) This is advance tax deducted from your salary with each payment. The amount normally depends on your income level and personal tax situation, but when invoicing without a company the Swedish Tax Agency recommends a flat 30% deduction, as this is usually considered a secondary occupation. At year-end, this is adjusted against your actual tax liability in your personal tax return.
VAT (typically 25%, but can be 12%, 6%, or 0%) The VAT rate depends on what you sell. Services typically have 25%, but certain services have lower rates (for example, education at 6%). For construction and renovation work, reverse charge VAT (0%) may apply. Paidin handles VAT reporting for you.
Holiday pay (12%) For each salary you receive, the statutory 12% holiday pay is included. You can also choose to save it and receive it as a lump sum before your holiday. You control this through a simple setting on Paidin.
No business ID tax needed
You never need to apply for a business ID tax (which self-employed business owners need to do). You invoice through the umbrella company's business ID tax, and all tax reporting is done automatically.
How it works in practice
Example: You invoice 50,000 SEK.
- Paidin's fee is deducted
- Employer contributions (31.42%) are deducted
- Income tax (30%) is deducted
- Holiday pay (12%) is included in the salary payment or set aside
- What you receive: Your net salary
All these calculations are done automatically in our system, and you receive a detailed payslip each time you receive your salary.
Want to try it yourself?
Create an account with BankID in under a minute and send your first invoice. Your first invoice is completely free, regardless of amount.