As an entrepreneur, the annual income tax (IB) return is an important but sometimes time-consuming part of your administration. Whereas employees have a large part of their data filled in automatically, as an entrepreneur you often have to collect, check and submit the correct information yourself. In this blog, you will read what to look out for when filing your personal income tax return and how smart tools such as TriFact365 can help you with this.
What is the personal income tax return for entrepreneurs?
The IB return is different for entrepreneurs than for individuals or employees. If you are self-employed or have a one-man business, then your profit from business falls under “box 1” of income tax. The tax authorities want to know exactly how much you earned, what costs you incurred, and whether you are entitled to deductions such as the self-employed deduction or SME profit exemption.
To do this properly, your records must be complete and in order. Think about:
- Your turnover and costs
- Depreciation of operating assets
- Private use of e.g. car or phone
- Any tax reserves (such as the FOR)
Important deductions and schemes
As an entrepreneur, you may be entitled to tax benefits. The main ones are:
- Self-employment deduction: for entrepreneurs who meet the hour criterion of 1,225 hours per year.
- Start-up deduction: additional deduction in the first years of your business.
- SME profit exemption: 14% of your profit is exempt from tax.
- Investment deduction: for investments above a certain amount.
It is important to keep a close eye on these deductions. A mistake or missed scheme can cost you a lot of money.
How TriFact365 helps with proper preparation
Good records are the basis for a smooth personal income tax return. This is where TriFact365 comes in. This software automates the recognition of purchase and sales invoices so that your records are always up to date and clear.
With TriFact365 you can, among other things:
- Automatically recognise invoices (using AI and OCR technology)
- Easily approve invoices and transfer them to your accounting package
- Keeping track of open items
Because TriFact365 links seamlessly with commonly used accounting packages, you always have up-to-date financial records at hand. This makes filling in the personal income tax return a lot easier – whether by yourself or through your accountant.
Tips for a smooth personal income tax return
- Start on time – Don’t wait until the end of April. The earlier you start, the more space you have to figure out questions.
- Check your records – Are all entries correct and are all business expenses properly substantiated?
- Work with an accountant – An accountant or tax professional can point out deductions and avoid mistakes.
- Use smart tools – Software such as TriFact365 ensures that your records are always well prepared.
The tax return may not be the most enjoyable part of being an entrepreneur, but with proper preparation and smart digital tools like TriFact365, you don’t have to dread it. By keeping your accounts in order throughout the year, you will avoid stress in the spring and make the most of your tax benefits.
Do you have questions about your income tax return or how TriFact365 can support you? Contact your accountant or try out the software yourself!
