Help and tips
Here you'll find instructions for using our invoicing service. If you need advice on the practical aspects of light entrepreneurship, our customer service will be happy to help.
Information for light entrepreneurs
0 What industries are a good fit for using an invoicing service?
Our invoicing service is best suited for situations where you are selling your work, your skills, or your services. Our users include salespeople, graphic designers, consultants, construction workers, artists, musicians, promoters, trainers, coders, and web developers.
Our invoicing service does not suit healthcare institutions requiring licence, business operations that require major equipment investments, or retail or wholesales of goods. For example, e-commerce where goods are sold directly to consumers via e-banking or credit card payments is typically impossible to facilitate via an invoicing service.
1 If I use your services, will I be considered an employee or a private contractor?
When you use an invoicing service for your invoicing needs, you, as a light entrepreneur, are acting as an employee of the commissioning client (with certain provisions). According to the Pension Insurance Centre's policy, a light entrepreneur is covered by the self-employed persons' pension insurance (YEL insurance).
If you work for a single employer, work only part-time or work under a broader framework contract, you are comparable to a person working as an employee.
In terms of unemployment benefits, each person's entitlement to unemployment benefit is assessed on a case-by-case basis by the employment office and unemployment funds, and should always be clarified in good time directly with the employment office.
When you work through our billing service, a fixed-term employment relationship is established for the duration of each assignment. Once a commission has been completed, you may also receive feedback for your work from your commission client. The system will reward you for each commission with points that you can use to lower the cost of additional services. ✨
2 At what stage of the process is the service fee charged?
The simple and easy answer: Whenever your bank account receives a payment for a completed commission. The final service fee that you are charged will depend on your membership and whether your work payment is paid out as a quick payment or not.
3 What kinds of things can I invoice?
In addition to completed work you can also invoice travel expenses, supplies and materials, just as long as you have first agreed upon those charges with your commission client beforehand. For example, if you're working a repair gig, you can use a single invoice to charge your client for the materials and/or supplies. Come to an agreement on the matter with your client or commissioner beforehand.
Separate the charges for the work and the materials into your invoice in advance; this makes it easier to create a summary for e.g. household expenses needed for tax credits. If you sell supplies and materials, you need to deliver us the original purchase receipts for the said goods (attach them onto the aforementioned invoice). If you make a profit on the sale of materials, we will treat it in payroll accounting as any taxable income you charge to your employer.
With regard to the amount of tax-free allowances, you must check that your gross earnings are not below the minimum wage set by the collective agreement in your industry (TES).
4 Why would I not start my own company instead of using your invoicing service?
Our invoicing service is best suited for situations where you are selling your work, your know-how, or your services. It is suitable for activities that do not require large investments, or which are not retail or wholesale of products. 😊
There are many jobs that are too time-consuming to start a business for.
When you start your own business, you legally become an entrepreneur. As an entrepreneur, you are bound by the obligations of an entrepreneur, and must organise your own accounting and invoicing. You will also need to pay advance taxes and monthly VAT.
Taking care of your obligations as a self-employed person takes a lot of time and entails various costs. As an entrepreneur, you will also not be entitled to the aforementioned unemployment benefits.
When you work through our invoicing service, it is easy for you to invoice the work you have done, and you will have more time to market yourself and your services to acquire new customers. It's good to remember that you will also have more time for yourself. 😇
5 Can I start my own company at a later date?
Yes, using an invoicing service is an easy and risk-free way to try out entrepreneurship or even test a new business idea you have just come up with.
Later, you can apply for start-up money if you are setting up a business after using our service. Entrepreneurial work and experience, as well as profitable activity as a light entrepreneur, can be considered a major advantage in the start-up funding decision. You can find out more from your local employment office.
6 How do I deduct service fees from my taxes?
Our service fees can be deducted as tax credits in the tax return that is created annually sometime between March and May. The service fees must be reported on the tax return under the heading "Income-generating expenses".
In addition, you will need a report on your income-generating expenses to attach onto the tax return, which you can download from our system. Download your own report by signing in, clicking the Reports page on the menu, and choosing which report you would like to download. ✨
7 What happens if a commission client will not pay their invoice?
We will guide and help you through the payment reminder process for free! Please note that we will not pay you until the client has paid your invoice.
If the client has not paid the invoice on time, please first ask the client or customer directly about the situation.
If the invoice is still unpaid after you have contacted the client, please ask us to send you payment reminder invoices. You will not incur any additional costs for reminder invoices.
We can only send a reminder invoice when your client is aware of the work you have done, has accepted the work, and has not complained about the invoice.
If a reminder invoice is not enough, we will start the payment recovery process. Please arrange for the payment recovery process separately with our customer service team, as you may incur costs if you and the client disagree on an invoice.
Tip! Because oversights sometimes occur, it is a good idea to spread large invoice amounts over several invoices.
8 How quickly is the invoice sent to a client?
Invoices created on weekdays before 2 PM are sent out on the same day, and invoices created after that are sent out the next weekday.
If the invoice is created in the evening, at night, or on the weekend or during a public holiday, the created invoice is sent out to the client on the morning of the following workday. 😊
9 What does light entrepreneurship mean exactly?
Light entrepreneurship is a new, modern form of employment where people who sell their skills or work invoice the company or individual customer through our invoicing system.
The system is used to invoice your own labour input, i.e. hours worked, instead of a normal employment relationship. Our invoicing service is based on a contractual relationship between light entrepreneurs and clients, where the remuneration for work is agreed in the commission contract.
Information about our invoicing service
0 How do I join your invoicing service?
Join our invoicing service completely free of charge by clicking on the Create an account or the Sign in button. After you have confirmed your e-mail address, you'll be able to access our invoicing system and can get started with familiarising yourself with it. By joining, you are not yet committed to anything.
Our service fees are based on invoicing only, and we do not have ongoing monthly fees or fixed initial or final fees. 🥰
1 Do I need to create any contracts when I join as a client?
You do not have to make any separate agreements with us. When you join our invoicing service, please read through the terms and conditions of the invoicing service, and follow them. The invoicing relationship with us is always automatically valid for each period you invoice your client.
You should always create a commission contract with your client. The contract may be either oral or in writing. You can download a written commission contract from the Default documents section by logging in, selecting the My profile page from the menu, and then selecting the My documents page from the submenu. 😊
2 What obligations are created as a result of using your invoicing service?
Simply registering with our invoicing service does not commit you to anything. 😇 When invoicing through our invoicing service, you must comply with our invoicing service terms and conditions.
3 What does using your invoicing service cost?
Our invoicing service has no ongoing monthly fees and no fixed initial or final fees, but we charge a service fee on the VAT-free invoice price only at the accounting stage. You can find more information about fees in our invoicing service's terms and conditions.
4 What should I tell my client i.e. my commissioner?
Your clients or commission clients can be private persons or companies. When coming to an agreement about work with your client, remember to tell them that you intend to use Way2Work's invoicing service to invoice them. This will give your client a clear picture on how you conduct your invoicing.
Our invoicing details are as follows:
Laskutuspalvelu Way2Work Oy
Business ID: 3123560-3
E-invoicing address: 003731235603
Operator ID: 003708599126
E-invoice operator: Open Text Oy
Tip! You do not necessarily need to provide this information to your client, as it will be automatically added to the invoice you send out.
When marketing your services, you can use your own marketing name, but when invoicing, please indicate that the invoice will be processed through the Way2Work invoicing service.
5 Can someone under the age of 18 join this service?
The answer is yes; our invoicing service has an age limit of 15 years. If you are under 18, you need written permission from your guardian to become a light entrepreneur on our invoicing service.
Tip! As a student you will have the lowest service fees on our invoicing service when you become a member, so please contact us for verification! This verification process can be completed with any student card or app.
6 Why should I pick Way2Work?
The Way2Work invoicing service was created during the COVID-19 pandemic so that people could find employment and act as entrepreneurs as easily as possible. When you run your business through our invoicing service, you do not have to take care of book-keeping or taxation matters for your business; Way2Work will handle it all for you. You can also have insurance through Way2Work (a voluntary additional service, but required e.g. in the construction industry) for both work-related accidents and liability. With us, you will never be alone, because we will always help you with your light entrepreneurship needs.
Tip! If you don't have any clients yet, you can still join Way2Work's invoicing service and fill out your profile. Way2Work partner companies can then send you suitable job offers, which you are free to accept and invoice as a light entrepreneur.
7 How do I get started as a light entrepreneur?
Becoming a light entrepreneur through our invoicing service is free of charge and without obligation. You can join our service with complete peace of mind!
Tip! Once an account has been created, our system will guide you through the process of filling in your details and creating a customer and an invoice. 🤩
8 How do I find employment as a light entrepreneur?
A fast and agile employment model increases attractiveness and competitiveness in the market. It is much easier and flexible to employ a light entrepreneur than to manage a traditional employment relationship. Light entrepreneurs are always contracted to meet a company's needs, e.g. to fill temporary or seasonal positions or to work longer commissions. Our invoicing service will take care of all the bureaucratic aspects of this, from invoicing to payroll and insurance.
9 What kinds of insurance do I need in the construction industry?
In case of an accident, care is easy and quick to access via Fennia. Our liability insurance covers damages up to 1 000 000.00 euros.
10 What is the pay like in the construction industry?
The collective agreement for the construction sector (TES) determines the wages of a person working in an employment relationship based on their professional skills, and the average wages for various wage brackets is around €14.60/h. If you are a light entrepreneur, we recommend that you use this as a guideline and add a multiplier of around 1.3x to the price of your commission to cover expenses such as a self-employed person's pension contributions (YEL fees). In that case, the rate you charge should be closer to €20/h.
Tip! Our customer service personnel will be happy to help you negotiate your pay at the right level for free and guide you through the various different payroll situations. 😎
11 IT, ICT and other similar fields
Working in the IT and ICT sector is filled with problem-solving, continuous learning, and challenging yourself. It's all about agile development, logical reasoning, and new technologies. Nowadays, it also involves light entrepreneurship.
When you work on commissions, you create a commission contract between the commissioning client and the light entrepreneur. This contractual relationship allows mutual flexibility and the freedom to freely agree on projects, working hours, working methods, and compensation.
In the ICT sector, light entrepreneurship offers an agile alternative to the traditional consultancy relationship. In the ICT sector, the average monthly salary for a consultant is €15 000, of which the person doing the work receives around €4 000 or even €6 000. The contractual relationship enables flexible employment and higher compensation without the involvement of third parties. Unlike a consultant, a light entrepreneur commits to the project, not a set number of hours. Light entrepreneurship is also a risk-free way to try out your wings as an entrepreneur... lightly!
Information for commission clients
0 What is the VAT for invoices in the EU and outside of the EU?
Within the EU, there is a reverse VAT charge system (0% VAT on sales of services to a trader subject to VAT in another EU country). The invoice is sent VAT-free to the client company within the EU, and the company receiving the invoice pays the VAT in its own country.
Please note that when selling services to a consumer (private individual), a consumer living elsewhere in the EU should pay 24% VAT to Finland. An exception is made for intellectual property rights.
Invoices outside the EU are marked with 0% VAT (sale of services outside Europe) when selling to companies. If you're selling your services to a private person, the invoice must include 24% VAT for Finland.
1 What if I work abroad for long periods of time?
In order to use our invoicing service, you must not spend more than 6 months working abroad. Work outside the EU can be invoiced through our service if the work is commissioned by a Finnish company; in other cases, you should contact our customer service. Our accident insurance is valid in EU countries while you are working.
What should you remember when invoicing abroad as a light entrepreneur?
- check the VAT position (consumers and businesses follow different procedure) from the Tax Administration
- the consumer customer is always invoiced for VAT
- instead of using a VAT ID number; please ask for the VAT ID number of the foreign company
- make sure you have the correct e-mail address for the foreign company for sending invoices
- check whether the foreign company is taxable in Finland (e.g. if the foreign company has a place of business in Finland and a Finnish business ID number)
If the company is taxable in Finland, the invoice will always have 24% VAT.
Invoicing abroad is not possible as a light entrepreneur if:
- a foreign company asks you to register with the ERP system
- you sell products
- you work abroad for more than 6 months
- you supply a tax card other than a tax card for ordinary wages
2 How quickly are the invoices sent?
Invoices will be sent to the invoice recipient on the same day, if the invoice has been sent to our system for checking before 2 PM and if the invoice has all the necessary information for sending it.
Tip! If we receive the invoice information on a weekend, during public holiday, or in the evening/at night, the invoice will be sent to the invoice recipient on the next working day. 😌
3 What services cannot be invoiced via your platform?
Our invoicing service is intended for invoicing your own work and any goods you may produce or create yourself. Our invoicing service cannot be used for reselling or retailing goods.
You cannot use our invoicing service to invoice work that requires a special licence or a permit, such as:
- transportation services requiring a transport licence
- steward services (however, it is possible to invoice for steward services for public events)
- healthcare and medical services, incl. the services of a trained masseuse. A masseuse's services can be invoiced via our service using the general VAT rate, but in such a case you may not describe yourself or your operations as those of a trained masseuse, and you may not advertise your services as healthcare services.
The exception to this rule is installing electric and refrigeration equipment and appliances. These can only be invoiced if the invoicer has registered with the Finnish Safety and Chemicals Agency (Tukes).
Our invoicing service cannot be used to charge for rentals.
In addition, personal compensation cannot be invoiced via an invoicing service. Such personal compensations include e.g.:
- Attendance fees
- Personal compensation for lectures and presentations
- Compensation for membership of an administrative body
- CEO compensation
If you're unsure whether your business operations could be invoiced via our invoicing service, please get in touch with our customer service.
4 What is a commission contract?
A commission contract is an agreement, where one party buys a certain work performance, service, or set of services from another party. The contract can be created in writing or electronically. However, the contract must be drawn so that neither party can modify the terms of the contract by themselves without the other's input or approval. It is a good idea to create a written contract if the said contract can then be modified by a shared agreement after the fact.
The purpose of a commission contract is creating a shared playbook of mutually accepted rules for both parties and clarifying what each party's responsibilities are. A carefully created contract minimises the potential for disagreement and clearly indicates the rights and responsibilities for each party.
5 As a commission client, how can I fulfil my clearing obligation?
The commissioner i.e. the party commissioning the job can ask the light entrepreneur to provide them with a certificate of taxation via e-mail that can be downloaded from the OmaVero web service. At the same time, the light entrepreneur can state in the field of the invoice's explanatory note that they doe not have a business ID number, and therefore no tax register entries or business registration certificates can be procured. By carrying out the work in this way, the contractor has fulfilled their clearing obligation.
The commissioner must keep the reports received for two years after completion of the work under the contract.
6 What should I do if I want to dispute an invoice I've received?
Notice of complaint should be made in writing. Please include the cause for complaint and the invoice number in your e-mail message to email@example.com.
Our customer service will look into the matter and will be in touch with the invoicer i.e. the person who completed the job. It is also a good idea to let the person completing the job know about the complaint, so as not to surprise them with the matter.
7 I received an invoice from Way2Work, and I don't know what the invoice is for. What should I do?
If you do not know which job the invoice you have received concerns, please check the following:
- check the invoice details: what kind of work does the invoice concern, and when was the job completed?
- check if you recognise the person who completed the work i.e. the invoicer.
- if you do not recognise the person who completed the work, please e-mail us at firstname.lastname@example.org, and our customer service will get in touch with the sender of the said invoice.
- our customer service or the sender of the invoice will then contact you to clarify matters.
Tip! If you are certain that you have received an incorrect invoice, please get in touch with our customer service in writing, and we will look into the matter as soon as possible.
8 What is the difference between an employment relationship and a commission?
Light entrepreneurs work based on their own work output, and companies or private individuals act as their commissioners.
The light entrepreneurs using our invoicing service are therefore no-one's employees, and the companies are not their employers. The light entrepreneurs using our invoicing service work in an entrepreneurial manner and enjoy the benefits of entrepreneurship, such as flexibility, freedom, and higher income. 🥳
Kela, YEL, and expenses
0 Can a light entrepreneur receive housing benefits from Kela?
It is a fairly common misconception that entrepreneurs – which includes light entrepreneurs ipso jure – are not entitled to housing benefits from Kela. If the income is small, entrepreneurs may also be entitled to housing benefits.
Entrepreneurs qualify for general housing benefit. It is granted jointly for the whole household unit as one. This means that your living companions' income will be of interest to Kela, and you should be ready to show proof of them when applying for housing benefit.
Those living in flatshares or with flatmates are not automatically counted as members of the same household unit, but it is normal to need to further clarify your living situation to Kela in such circumstances. The clarification should be thoroughly made, because Kela will use it as a basis on deciding whether your living situation is that of flatmates or of cohabiting life partners.
Housing benefits may be granted not just for rental flats, but also for owner-occupied dwellings, partially owned dwellings, and right-of-occupancy apartments. 😌
1 How is an entrepreneur's housing benefit calculated?
A light entrepreneur's housing benefit is affected by e.g.:
- the entrepreneur's income
- the household unit's other income, such as spousal income
- the number of children under age 18 in the household unit
- municipality of residence
- whether the light entrepreneur is responsible for YEL fees.
Kela's online calculator is easy to use for finding out the amount of housing benefit that you can receive.
If the light entrepreneur is responsible for YEL fees, the housing benefit will be estimated using the YEL income as a basis. The YEL income has been declared by the entrepreneur to the pension insurance company.
The amount declared as YEL income also qualifies as a criterion for Kela's housing benefit.
This means that Kela does not ask the YEL payer how much income the invoicing service pays, but only takes into account the YEL income.
If the light entrepreneur is not a YEL payer, Kela uses the income paid by the invoicing service as the basis for granting housing benefit. Way2Work's customers can download a summary for Kela applications directly from our system.
2 Housing benefits for part-time light entrepreneurs
Even if a light entrepreneur works part-time alongside paid work, they may still be entitled to housing benefit as a low-income earner.
When income is assessed as a basis for receiving housing benefits, the procedure for a part-time entrepreneur is as follows:
- Wage income and YEL employment income of a light entrepreneur with YEL are added together.
- The wage income and the income earned as a light entrepreneur of a light entrepreneur without YEL insurance are added together.
This gives the total income for the assessment.
3 Charging expenses for material expenses
In practical terms, this means that a light entrepreneur can directly deduct the costs associated with work, meaning the supplies and materials that are left to the client or to the construction site. In addition, a light entrepreneur may deduct as expenses those supplies and tools that will get worn down or consumed while they work.
4 Charging expenses for travel expenses
If a light entrepreneur commutes to work using their own car, the commissioner may pay a tax-free kilometre allowance for using their own car. The amount of the reimbursement is determined by an annual decision issued by the Tax Administration.
Only the driven kilometres can be entered as reimbursable, not other car-related costs, such as windscreen washer fluid.
When entering the number of kilometres driven, the logbook must be documented in accordance with the instructions issued by the tax authorities. This log of kilometres driven is called a logbook and must be kept for possible future reference.
Expenses can also be added to the expenses, for example, for public transport tickets related to a business trip.
You can also add accommodation expenses if you are going on a business trip to another place for several days.
For more information on travel expenses, see the Vero.fi website's section on travel expenses paid by invoicing service companies for pre-tax and income tax purposes.
5 Charging expenses for meals
If a light entrepreneur does not have the opportunity to eat at their normal eating place and they do not earn a daily allowance for the same days, the food eaten during working hours can be added to the meal expenses.
To qualify for a meal allowance, a daily allowance must not be paid and the person must not be able to eat at their normal eating place during the meal break because of work. Receipts for meals and proof of the need for reimbursement (e.g. a calendar entry for the meeting) must be kept personally for future reference.
6 What expenses cannot be deducted?
Purchases that may involve private use or have a longer-term use are not eligible for reimbursement.
Examples include clothing, a telephone or a computer. However, these can be put towards income-earning expenses for personal tax purposes. There is also another factor to consider, for example, in both meal and kilometre allowances. They are not reimbursed in full (i.e. according to the amount on the receipt), but according to their taxable value.
Tip! The tax benefit received is therefore different from the amount actually paid.
7 Paying expenses
Expenses and allowances are paid according to the tax authorities' instructions.
The invoice's VAT-free total sum is divided into two parts: the payment paid for the work, and expenses and allowances (if featured in the invoice). Taxes and any incidental expenses are paid on the payment portion, but no deductions are made for the expenses portion.
A few final notes on the payment of expenses:
- Expenses cannot be claimed as an advance payment, as expenses can only be paid when the client pays the invoice.
- Expenses are paid in a lump sum, not in instalments.
- Expenses cannot be higher than the net salary receivable.
8 Light entrepreneurship and the self-employed person's pension insurance contribution (YEL)
When you work as an entrepreneur, the form of social security changes – but it does not stop. If you work under a business name, or if the annual income limit for a light entrepreneur rises to €8 575.45 (in 2023), you must take out self-employed persons' pension insurance (YEL).
This insurance is compulsory as it is an important part of your pension and social security coverage. Unemployment benefit, as well as sickness benefit, is calculated based on YEL earnings. That is why it so important to set the YEL income level at the right level from the start.
Each YEL contribution paid increases the pension and improves the social security of the entrepreneur. The YEL insurance contribution is tax deductible. The YEL insurance contribution is set according to your income estimate. An entrepreneur is covered by the YEL liability if they are aged between 18 and 67, live in Finland, work in an entrepreneurial capacity – i.e. as a light entrepreneur or self-employed person – the business activity has lasted for more than four (4) months, and the income from work exceeds €8 575.45 per year (in 2023).
If the self-employed person has taken out YEL insurance corresponding to the income, unemployment insurance, sick pay, or other benefits are no worse than for a typical regularly-employed person.
9 Will the work that I do count for my unemployment fund's employment requirement?
The work you do through our invoicing service is self-employed work and is not usually counted as part of the employment condition for the employee fund.
In contrast, if you are insured under the YEL scheme and have an annual income of at least €14 088.00 (in 2023), you can join an unemployment fund for self-employed persons, in which case the work you do will count towards the employment condition for earnings-related unemployment insurance on the self-employed side. 😌
How Way2Work has helped light entrepreneurs in their work
Thanks to Way2Work, I've had an easy time getting started as an entrepreneur. Highly recommended!
Construction and earthmoving work
I was really surprised with the quality of the whole service. Everything is taken care of. Thanks for making invoicing so easy!
Logistics and warehouses
I'm going to tell my mum about this, she could really make use of this service to make running her business simpler! It fits our needs perfectly. 😁
Hotels and restaurants
The excellent customer service really does save us a lot of time and effort. This is exactly what I've needed! Other invoicing services haven't really been able to help me with anything...
I didn't know how to make invoices or to take care of the bureaucratic side of things, but Way2Work makes sure I don't need to learn. Thanks for the promo code, too!
Beauty and health industry