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How light entrepreneurship works

Light entrepreneurship and YEL insurance

The YEL insurance, or self-employed person's pension insurance, forms the basis for the social security and pension of a light entrepreneur. YEL income determines, among other things, the amount of sickness and parental allowance, unemployment benefit and pension accrual for the light entrepreneur.

As a light entrepreneur, you do not need to get YEL insurance immediately, but you must take out insurance when the following conditions are met:

• You have worked as a light entrepreneur for at least 4 months
• I am 18-67 years old
• Your income from work for 12 months exceeds a certain threshold (9 208,43 € in 2025)

Light entrepreneurs always take care of their own YEL insurance, but our customer service will be happy to help you with any questions you may have about insurance.

Read more YEL insurance and other insurance for light self-employed persons.

Why YEL insurance is important

YEL insurance is compulsory for all light entrepreneurs who meet the above conditions. This also applies to qualifying light entrepreneurs who run their business as a sideline to their studies or day job.

The YEL insurance must be taken out within six months of the date on which the conditions for the YEL requirement are met.

In practice, the entire social security of a light entrepreneur is based on the YEL income. Thus, the YEL insurance affects the light entrepreneur:

• for the accumulation of disability, old-age or survivors' pensions
• sickness allowance
• parental benefits
• unemployment benefits

The price of your YEL insurance is determined by your YEL income. The YEL income you declare must correspond to the economic value of the work you do as a light entrepreneur and to the wage that another equally skilled person would be paid for the same work.

Other insurance for light self-employed persons

Like traditional entrepreneurs, light entrepreneurs need insurance to protect themselves and their activities, some of which is compulsory and some voluntary. However, dealing with insurance issues can take up a lot of expensive time, which is why we have tried to make it as easy as possible for Kevyesti.fin's light entrepreneurs.

We insure all our customers with accident insurance, and this requires no action on your part. We will also be happy to help you with insurance such as YEL insurance or insurance required by your industry.

The premiums (2 % in total) are automatically deducted from your turnover.

Accident insurance for light self-employed persons

As a Kevyesti.fi customer, you get accident insurance that gives you financial protection in the event of an unexpected accident. The insurance covers the medical expenses caused by the accident.

Taxation of the light entrepreneur

When you invoice your clients as a light entrepreneur, you normally pay tax on your earnings at your tax rate. When you use the Kevyesti.fi invoicing service, you don't have to remember to pay taxes yourself, we do it for you automatically. All you have to do is submit your tax card electronically to us.

You can easily check your tax rate with your bank details on the Tax Administration's website.

Try to make a realistic estimate of how much you can expect to earn as a light entrepreneur. If the income limit on your current tax card is underestimated, you should order a new tax card in good time to take account of your earnings as a light entrepreneur. Read more on Vero.fi.

Light entrepreneur and VAT

Value added tax, or VAT, is a tax that is added to the price of almost every service or product and paid to the state. One of the most important differences between light entrepreneurs and self-employed persons is the way in which their rights and obligations with regard to VAT differ.

A common misconception is that light entrepreneurs think they can invoice without VAT (0 % VAT) if their annual income is below the €20 000 threshold. This perception would be true if the light entrepreneur were operating under his own business name - for example, through his own trading name.

However, when invoicing through Kevyesti.fi, the light entrepreneur does not use his/her own business ID, but all invoicing is done with the business ID of Kevyesti.fi Oy. In this case, the annual income of an individual light entrepreneur is irrelevant for VAT liability, but the decisive factor is the total turnover of Kevyesti.fi Oy, which is well above the VAT liability threshold.

For this reason, all invoices sent through the Kevyesti.fi service are automatically subject to VAT, unless there is a specific VAT-exempt service or an exception based on other legislation (e.g. exports outside the EU under certain conditions).

If you are unsure about the VAT rate for your service, you can always contact. our customer service - we are happy to help!