Providing household services to the population: what is it, classification, types and features

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UTII is a special tax regime. It reduces the number of mandatory taxes and reduces the payment amount. UTII can be used for activities related to the provision of household services. Since 2021, the OKUN classifier has been canceled, and OKVED and OKPD have been updated, so it’s easy to get confused in the new codes. In the article we will provide a current list of household services for the use of UTII in 2021.

UTII household services

When providing household services, you can apply UTII. But the possibility of switching to imputation depends on:

• whether the UTII regime has been introduced in your territory;
• whether the service is classified as household;
• whether UTII has been introduced in the region in relation to your activity.

From January 1, 2021, imputation will be cancelled. It’s time for everyone who provided household services and worked for UTII to choose a new tax regime. Choose the most favorable tax system for yourself using our online calculator. We described in the article how to transfer household services from UTII to the new regime. If you don’t find the answer to your question, ask it in the comments to the text, we will definitely answer.

The local representative body makes a decision on the introduction of UTII. It defines household services that can be provided on UTII in a given area. Imputation may be allowed to be used for individual household services, their groups and types. Then the special regime can only be applied to the services specified in the act. If you operate outside of your local location, follow the regulations of the region in which you provide services.

Household services on UTII are characterized by three features:

• the service is recognized as household;
• the service is provided to individuals;
• A fee is charged for the provision of services.

If your services meet the conditions, you can use UTII. Now let’s take a closer look at the difficulties with dividing services into household and other types.

Who is this article suitable for?

You can work for yourself, rather than for hire, at any age. When you decide to take a step towards change, you take advantage of an enviable perspective. Reaching the next level as a self-employed specialist.

Service business ideas are suitable:

• People with higher and secondary specialized education who want to apply the acquired skills independently;
• Students who do not want to work for their “uncle”, live on a scholarship and burden their relatives;
• Employed, as a part-time job with the prospect of replacement;
• For beginning entrepreneurs with small start-up capital;
• People without education or inclined to work outside their specialty;
• For existing businessmen who want to expand their business into new and related areas;
• Specialists who are ready to use knowledge and experience to develop their own business;
• For able-bodied retirees who have a craving for action and conquering new heights.

A university graduate expects to take a position with a decent salary. In 2018-2019, there is an oversupply of applicants. Demand exceeds supply. Going into business turns a former student into an employer. The service sector allows you to work independently and reduce cost items to a minimum. Serving the population and legal entities is distinguished by a low investment threshold and quick payback.

Professional education allows you to work in your profession. Apply the acquired knowledge in practice. Among legal entities, accountants, financial consultants and lawyers are in enviable demand. The population needs craftsmen who provide household services.

Lack of education or the desire to realize oneself in other areas does not exclude prospects for development in the service sector. Tutors, nannies, caregivers, and other hourly paid professionals will find grateful clients.

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The principle of calculating UTII and explaining the main indicators

The calculation of UTII is fully regulated by tax legislation. The formula for calculating the tax base within the framework of the application of a special tax regime is as follows:

Tax base = DB * FP * K1 * K2 , where

DB - basic (conditional) income. This indicator is conditional, since its value does not depend on the income of an individual entrepreneur/legal entity. The database for each area of ​​activity falling under the UTII law is established by the Tax Code and local governments;

FP is a physical indicator, approved specifically for each area of ​​activity, depending on what is the main production facility (people, vehicles, advertising stands, etc.);

K2 - coefficient, which is regulated by regional authorities for the year, for each type of activity relevant only for a given region (can be found on the Internet portal of the local Federal Tax Service or by personally contacting the local tax service);

K1 - deflator coefficient, set annually by the Ministry of Economic Development of the Russian Federation, for 2021 the deflator coefficient is 1.798;

Until 2015, the UTII rate was 15%, but starting from 2015, territorial self-government bodies had the opportunity to reduce and differentiate it. Consequently, at the moment the UTII rate varies from 7.5% for significant areas of activity in a particular region to 15% for all others.

To calculate UTII, the formula is used:

UTII = Tax base × Tax rate – Insurance premiums

List of household services 2021

First steps

The primary task in starting a business providing services to the public is drawing up a business plan. You need to calculate all the details as competently and meticulously as possible, so as not to end up “at zero.” Perhaps, if you have never made such plans before, it is better to turn to specialists. Although, it is not uncommon for citizens to open a business without making plans at all. However, we advise you, before starting, to roughly calculate the expected expenses and income in order to assess the profitability of the planned business.

An example of a business plan for the provision of accounting services.

An approximate calculation will help you decide on the amount of starting capital. As a rule, first you need to rent a room, purchase machinery and equipment.

Many individual entrepreneurs initially do everything themselves in order to save money, and as their scope of activity increases, they hire labor.

The main point for starting activities is the legislative registration of the services provided. For example, the provision of legal services without registering an individual entrepreneur, or some other type of service provided by an individual without registering an individual entrepreneur, will entail various sanctions from government agencies. Therefore, before you start, you definitely need to register with the tax office and obtain a certificate of registration as an individual entrepreneur.

You can provide services without registering as an individual entrepreneur if you register any type of legal entity. In some cases, without legal education. individuals are still indispensable (for example, the sale of alcoholic beverages to individual entrepreneurs is not allowed).

Services sector

Service - actions that represent tools for the production of value . They can be used to create value, but they are not value in themselves.

Within consumer services, services constitute the majority of the activities of individuals and businesses involved in this segment. The exception is manufacturing niches: custom-made products.

What are household services? Let's look at examples of household services :

1. Shoe repair . In this case, a person has a value: shoes, and a person who repairs shoes has an awl, thread, glue and other tools that he uses in his work. His work is a process of restoration, not sewing new shoes using his valuables. In this case, the work performed will be a service.
2. Kitchen to order .
   In this case, a person has a need: furnishing a kitchen space. The customer has no value. The contractor creates it by: designing, purchasing materials, cutting, edging, and so on. The customer receives a product, not a service. Despite the fact that a kitchen is a product, its installation is a service that requires separate documentation.

Employer Responsibilities

Attention! According to Article No. 223 of the Labor Code of the Russian Federation, the employer has obligations to its employees to ensure their working life.

For example, the employer is obliged to provide :

1. Workers eating area.
2. Workers with a room to receive medical care and equip them with first aid kits for first aid.
3. Workers have rooms for psychological relief and relaxation during the working day.
4. Transportation of workers injured in an industrial accident at your own expense.

The processes and procedures associated with these obligations for the welfare of hired workers are prescribed in a number of federal laws: No. 90 of 2006, No. 267 of 2009 and No. 317 of 2013.

Responsibility of the contractor to the customer

The rules for consumer services for the population are defined in Decree of the Government of the Russian Federation No. 1025 of 1997, as amended in 2012. This resolution defines the basic rules by which orders are accepted and processed, payments for services and work are made, and services and work are performed. It also states the responsibility of the contractor to the customer.

If we briefly summarize the content of this resolution, we can highlight several main points :

1. The Contractor is obliged to inform the customer in detail about his activities, experience and legal status.
2. The contractor is obliged to explain the result of the work to the customer in detail and show samples (if possible)
3. The contract for the provision of services is drawn up in writing in two copies.
4. The contract must indicate:
   persons signing the contract;
5. subject of the contract;
6. cost of work and services;
7. timing of works and services;
8. form and procedure for payment for work and services;
9. responsibility of the parties to the contract.
10. Responsibility between the contractor and the customer is determined by the contract and the legislation of the Russian Federation.

We have articles about consumer services for the population in Russia and about the object of such services. Also read how sanitary, medical and preventive services for workers are organized at the enterprise.