Why is it smart to pay extra attention to your tax return this year?

We see it happen again and again every year: entrepreneurs who have to repay unexpectedly high amounts to the tax authorities. That is of course annoying, so we are going to prevent that instead of curing it.

The corona measures taken play a major role in this year's declaration. Indeed, some of these measures may have consequences for your 2021 tax return. We've done the research for you and listed them for you:

1. ‍The hour criterion
   You meet the so-called “hour criterion” if you are entitled to deductions such as the self-employed deduction/starter deduction and SME profit exemption. The hour criterion was relaxed from 1 March 2020 to 30 September 2020. You can assume spending 24 hours a week, even if this has not really been the case.

• • Are you a part-time entrepreneur?
    Then you can expect to spend at least 24 hours a week for the period from 1 March 2020 to 30 September 2020.

• • Are you (partially) incapacitated for work?
    Then you can expect to spend at least 16 hours per week for the period from 1 March 2020 to 30 September.
    

• • Are you a seasonal entrepreneur?
    And are you normally at your busiest in the period from 1 March to 30 September? (Beach tent owners, restaurants with terraces, event organization). Then you can expect as many hours as you worked in 2019 for this period in 2020, but please note that you must be able to prove those 2019 hours!‍
  • The TOZO benefit
    This benefit is seen as part of the income, so you have to pay tax on it again. To make it easy for you, the amount of this benefit is already included in the pre-filled information in the declaration. This information is collected from the municipality where you live. Isn't it right? Then contact your municipality quickly to prevent problems.‍
  • Do you have a partner?
    Then the TOZO benefit counts for half of your partner's income. In that case, you or your partner may have to pay more or get less in return than you expected.
  • ‍The TOGS benefit and TVL allowance
    You do not have to pay tax on these allowance (s) if you enter them in the “Exempt profit items” and “Extraordinary income and expenses” sections.

Our 4 tips for filling out your tax return

By being sharp when filling out the tax return, you may be able to save quite a bit. So nice this year, and sometimes, while filling out the declaration, you also get good ideas that you can use for the future.

For example, when you see that you have missed out on a certain advantage. It sucks, but you're never too old to learn, right? If you pay more attention to it next year, you might even get such an advantage again. You can round up all amounts you enter to whole euros in your favor.

Tip 1: Share deductions with your (tax) partner

Did you know that you can share almost all deductions with your (tax) partner? Make an overview of what applies in your case so that you can end up as economically as possible.

If you (or your partner) are in a higher tax bracket than the others, it can really make a difference, up to thousands of euros. Round deductions up and assets down. Examples of deductions include:

• Mortgage costs
• Distribute your own home income
• Expenses
• Health care costs
• Study costs
• Donations to (recognized) charities
• Ex-partner alimony

There are minimums for that, you can find them at the website of the tax authorities. Also, check carefully what exceptions apply. For example, you can't just deduct durable business goods above 450 euros, but you have to depreciate them!

If you work with your partner, there is also extra benefit when he or she falls into a lower tax bracket. For example, you in the highest bracket (49.5%) and the other in disk 1 (37.1%). Then you might pay less. For example, you could think of sharing the car addition.

Please note that what you have to pay jointly is also determined by the applicable tax credits. For example, it is possible that there are also lower tax credits will apply! That is why it is wise to calculate carefully in advance whether the distribution provides the benefit you are looking for. If you are not very good at this yourself, a professional can help you get started.

Tip 2: Influence your own profit at the end of the year

You can influence the amount of profit at the end of the year yourself. Examples include accelerated depreciation for starters, the scheme for investments in environmentally friendly assets (Vamil), reserving profits for your retirement provision (FOR).

If you expect to incur certain costs before the end of the year, you can use that to reduce your profit. As a result, you may have to pay less tax and you may benefit for the next financial year. Of course, it's a good idea to see if that's even possible: do you have sufficient cash?

If you are going to get started with this, also take into account your possible right to benefits. Also for the future. You may not be entitled to benefits this year, but you will be entitled to benefits next year. For example, if you move into a rental property or make use of childcare. Then it's probably better not until next year to print your profits than now, but of course only if the difference is worthwhile and you can afford it financially.

Tip 3: include remuneration for collaborating partners

Do you have a partner who does not work for you as an employee but does participate in the company? Then you can take this into account for tax purposes. For example, by submitting the cooperation deduction. This is a percentage of the profit that depends on the number of hours worked. You can also opt for employment remuneration. This must be a realistic hourly wage for the work performed and should be at least €5,000 in a year.

Tip 4: Business travel expenses

Some entrepreneurs choose not to take a company car. In such a case, you should make sure you write down all the kilometers and enter 19 cents per kilometer. Of course, only for business miles! You are not allowed to take fines with you. Quite logical in itself, but in practice, this often turns out to be a real “instinct”.

Good luck with the tax return. Spend a little extra time doing it this year, who knows what it'll bring you. Swishfund can help you financially if you have to pay back unexpected money. We do that with smart business loans. Apply for a loando it online and it will be arranged within 10 minutes!