As a light entrepreneur, you are covered by personal customers for tax purposes. Usually, if there is nothing to correct in your tax return, you don’t need to do anything. However, if you want to apply for tax-free expenses, for example, to correct your tax return, the filing deadline is May. Check the date of your own tax return, for example, from MyTax as soon as it is available and mark it on your calendar.
Ninjou assists in light entrepreneurs tax filing related to invoicing.
Ninjou can help you figure out the best way to bill your expenses. It is a good idea to talk to us about this even before you have agreed on invoicing and amounts with the customer. Our practical and experience-based tips can be a great help if you’re just starting your own billing as a light entrepreneur. The Ninjou user will have access to a handy information tool that will always give you all the relevant tax-free amounts for your tax return. You can also get instructions for filling out a tax return and tax advice from us. Feel free to ask us about tax issues, for example via chat! We serve the so-called during basic office hours from 9 a.m. to 4 p.m., but you can leave a message at any time of the day, according to your own schedules. We will get back to you as soon as possible, usually the next business day. P.S. Please follow us on Facebook too…?
Light entrepreneurs travel and other expenses in Ninjous billing service
Through the billing service, you can receive, for example, travel and daily allowances, which are included in the billing. Such expenses are paid without withholding tax, ie they must be applied for tax-free separately with the spring tax return. Please note that travel, accommodation and supplies costs are completely tax-free and may be included in Ninjou's billing to the customer. Receipt receipts can consist of, for example, paints, screws or other materials used to the customer's order. Tax-free compensation paid on receipts is not required and should not be claimed tax-free, they have already been declared and paid tax-free.
Example 1: Light Entrepreneurs expenses included in the invoicing that need to be separately claimed for tax exemption
You agree with your customer a billing of € 200 and expenses such as per diems are included in the billing. Ninjou declares the compensation as non-taxable income to the taxpayer. Unless you apply for these benefits separately with the spring tax return, you will receive residual taxes, so-called matches to be paid.
The kilometer allowance paid without withholding tax must be applied for tax-free in the “Other deductions” section of the tax return:
- Select: “Travel Expenses - YES”.
- Press the “+ Add new travel expense” button.
- Select: “Other than distance between home and work”.
- Select: “Temporary business trips and special business trips”. - This is the right choice for most Ninjou users.
- Vehicle type: Other than public transport.
- Vehicle: “own car”.
- Has the employer paid tax-free travel allowance? - NO.
- Have you traveled the same round trip regularly? - NO.
- From - to - enter “Multiple Jobs” to your destination.
- Average distance traveled in one day - See the average distance traveled on your own page under “Tax Information”.
- The period during which you have made these trips - the default is the whole year, this should not be changed unless you have started working as a light entrepreneur during the year.
- Number of travel days in the selected time period - See the number of travel days on your own page, under “tax information”.
- Finally, select: “OK”
The daily allowance, ie the increased cost of living, is claimed tax-free as follows under "Pre-filled income and deductions":
- Click on the “Income Acquisition Expenses” link.
- See the text: “Expenditure on earning wage income” and press “Open breakdown”.
- Search for “Increased Cost of Living” - fill in the field for the amount of daily allowances for the whole year. You can find the amount on their own pages under “Tax information”.
- The “Other expenses” item includes the Ninjou service fee, health insurance fee, possible accident insurance fee and YEL insurance. YEL will be included if Ninjou has paid it for you. If you paid YEL yourself, the information should automatically go from the insurance company to the tax administration. All of the information mentioned above can be found on the second page of the last payroll of the year. You can find the salary calculations under “Salary calculations” on your own website.
A light entrepreneur can also receive tax-free compensation if the expenses related to the billed work are invoiced on top of the agreed, taxable fee and itemized in the invoice. In practice, it is advisable to agree about these expenses in writing in advance with the customer, and no artificial limit should be set on the total amount that limits the reimbursement. In other words, the amount of taxable income cannot be reduced simply by traveling further from your home.
Example 2: Tax-free, billable expenses for a light entrepreneur
You agree on a taxable fee of 200 euros and one daily allowance of 45 euros and 100 kilometers = 100 x 0,46 euros. The total amount of the invoice is EUR 291, of which EUR 91 is tax-free income and 200 euros is taxable.
You do not notify the tax administration for these expenses, Ninjou will handle that. You also can not apply the expenses to be tax exempt as they have already been deducted from your final taxable income when you received your salary.
Note that the above examples do not comment on VAT. VAT is a topic worth its own (possibly several) articles! Of course, you also do not have to declare VAT, it is Ninjou's job.
Did you know that you can also claim tax deductions on tools related to your job up to five years in retrospect?
Tools related to your light entrepreneurship can be applied as tax exempt. It pays to dig through even the old receipts at the bottom of the box and seek tax breaks.