Taxes: Income from other activities

Miscellaneous Owainnub July 25, 2016 1 9
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If you have income as a freelancer or childminder? Or did you have other extra income? Then you may have income from other work. That income from other work you have to pay taxes.

Income from other activities

Income from other activities are not subject to wage income or income from a business. There is income from other activities if work is performed which aims to achieve an income. There is no employment relationship with an employer.

What is covered by income from other activities

Income from other activities is a broad concept. Below are some examples of specific income from other work.
Income from other work include income you received:
  • as a freelancer
  • as home help
  • by holding lectures
  • as a childminder
  • by writing articles and books
  • as an artist or professional athlete
  • when paying off a personal budget
  • if labor remuneration from the company of your tax partner
  • by doing odd jobs for others
  • by giving courses or extra lessons
  • by asset for which you performed more work than usual
  • as a member of a municipal council
  • of lodgers

Pay taxes

Income from other activities is income where there is no tax withheld on through for instance the employer. That means that this subject by the one who receives income taxes and premiums to be paid. How much this is depends on total annual income. Also needs to be paid for the income-dependent contribution Health Insurance Act. Tax on income from other activities can be paid in two ways. This can advance by way of a provisional assessment in the current year, or through the declaration of the end of the calendar year.

Deductible expenses

When there is income from other activities, certain costs incurred to carry out this work are deductible on income. This means there is thus reduced tax liability. To deduct the cost subject to certain rules:
  • Business expenses can be deducted at all. These are costs that are necessary for the performance of your work.
  • Costs that have no business nature can not be deducted
  • Costs that have a business and private nature, you may only
  • deduct the business part.

As indicated above, not all expenses incurred are deductible.
Non-deductible expenses include:
  • telephone subscriptions for telephone connections in the
  • living space
  • garments, with the exception of workwear.
  • cost of personal care
  • wage tax and national insurance contributions, premiums
  • Invalidity insurance and
  • income-related contributions Health Insurance Act

Costs that can be deducted include:
  • travel expenses, use of the private car may be 19 cents per kilometer driven for business are performed.
  • rental of office space
  • calls from business calls from the home phone
  • Specialised

Administration

If you have income from other activities, you are not mandatory for the tax authorities to keep records. Well you should, if the tax authority requests it, in a timely and sufficient overview can submit data relating to the income and deductions. It is therefore wise to keep track of what income you have had, and to keep the receipts etc. with regard to the deductible costs.
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