December 9, 2021

Beyond Going Long

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What can affect your tax return to pay less tax next year

What can affect your tax return to pay less tax next year

Fixed expenses – when you don’t need laptops

Even in 2021, it is possible to claim expenses as a percentage of income at 60 percent, that is 20,000 euros per year, and therefore it is good to consider the possibility of claiming expenses at the end of the year, for self-employed people whose actual expenses charged – the percentage of income, the so-called fixed rate. However, only if they are not subject to VAT throughout the year. If they pay only part of the year, the expense can be claimed as a percentage of income. The advantage of a flat rate application is that self employed You don’t have to worry about not recognizing the possible expenses he would have incurred if he kept tax records.

The implementation of fixed-rate expenses eliminates the obligation to drive Accounting, Straight tax records And you just need to keep a simple record of receivables, income and inventories. Another advantage of flat rate expenses is that you can claim 20,000 if you work for one month in 2021. There is no monthly limit, as there was in 2016, you can only claim a proportionate part of your expenses per month – up to a maximum of 420€ per month.

Expert alert!

An entrepreneur, a VAT payer, stops working on October 31, 2021. Can he or she not claim expenses as a percentage of income if he is a VAT payer during his entire working period?

This entrepreneur can claim expenses as a percentage of income for 2021, because he has not been a VAT payer during the entire tax period.

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Entrepreneur registered with VAT in 2020. Can this entrepreneur claim his expenses as a percentage of income in 2021?

An entrepreneur, even if he is registered for VAT and is a taxable person and has a VAT ID assigned to him, does not consider himself a VAT payer, and therefore in 2021 he can claim expenses as a percentage of income, so – the so-called fixed expenses.

In 2021, the entrepreneur’s income amounted to 105,000 euros. What is the cost of using a flat rate?

(a) 20,000, including paid social security contributions and sickness insurance advances

b) Or 20,000 plus paid Social Security contributions and health insurance advances?

An entrepreneur can spend 20,000+ paid Social Security contributions and health insurance advances on expenses in 2021. Answer b) is correct.

Tax records – no need to complicate your life with simple accounting

You can also choose to drive after the end of the accounting period tax records Although you kept simple accounts during the year. You can easily use the simple accounting data that you have in your accounting software as data for tax records. Tax records may also be kept by the taxpayer who was the VAT payer during the entire accounting period and also by the taxpayer who is the business owner. For VAT purposes, the taxpayer must keep detailed records in accordance with the provisions of the law on value added tax.

The advantage of tax records is that you are not required to prepare financial statements and prepare financial statements, because you are not an entity. Therefore, you only file the tax return itself with the mandatory attachments that are part of the tax return form. Data from tax records are provided in Table 1 a) of personal income tax return type b. I will refer to the application of tax records in the sixth. individual. The Type B tax return is under Schedule 1, the first line that applies demonstrable expenses

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