As a self-employed professional (zzp’er), you deal with a wide range of responsibilities, including managing your own tax matters and following tax tips for freelancers. Although this offers independence and freedom, it also brings challenges. Many self-employed individuals make mistakes in their tax returns, which can lead to fines, extra costs, or administrative stress.
Here are some common mistakes and tips to avoid them, based on Dutch rules and standards.
1. Your administration is not in order
A common mistake is not keeping your records properly. This can lead to loss of oversight and make it difficult to collect the right information for your tax return. In addition, poor administration can result in fines or corrections from the Tax Administration.
How do you avoid this?
- Use bookkeeping software such as Moneybird, Exact, or Jortt.
- Store receipts digitally and categorize expenses immediately.
- Schedule weekly time to update your administration so it remains up to date.
2. Reserving or paying taxes too late
Many freelancers underestimate the amount of tax they must pay at the end of the year. This can lead to unexpected tax assessments and financial problems.
How do you avoid this?
- Reserve at least 30–40% of your revenue in a separate savings account.
- Use provisional tax assessments so you can pay in instalments.
- Use software or an accountant to monitor deadlines and amounts.
3. Not applying deductions
Many freelancers are not fully aware of deductions such as the zelfstandigenaftrek, startersaftrek, and SME profit exemption. By using tax tips for freelancers, you can ensure you benefit fully from these deductions. Not doing so may cause you to pay more tax than necessary.
How do you avoid this?
- Read up on the tax deductions that apply to freelancers.
- Hire a bookkeeper or tax advisor to ensure you don’t miss any deductions.
- Check annual tax rule updates via the website of the Tax Administration.
4. Not keeping mileage correctly
If you do not properly document your business trips, you may face issues during tax audits. This also applies when deducting trips for your VAT return.
How do you avoid this?
- Use a tool such as RitAssist or a well-maintained Excel file.
- Record all business trips with starting and ending points, dates and kilometers driven.
- Ensure your administration matches your tax returns.
5. Incorrect VAT return
A mistake in your VAT return, such as incorrectly applying the 0% rate or failing to report foreign income, can lead to assessments and fines.
How do you avoid this?
- Read up thoroughly on the VAT rules for your sector and situation.
- Check your return carefully before submitting it.
- Use software that automatically generates VAT calculations and reports.
6. Not seeking help
Trying to manage all tax matters alone without sufficient knowledge can lead to mistakes and missed opportunities.
How do you avoid this?
- Hire a professional bookkeeper or tax advisor in good time.
- Use services like Balancify that offer a personal bookkeeper.
- Take courses or attend seminars about tax matters for freelancers.
7. Filing tax returns too late
Submitting your return too late can result in fines. For VAT, for example, the fine is €68 (2024). Income tax returns can also result in penalties if filed late.
How do you avoid this?
- Note VAT and income tax deadlines in your calendar.
- Use software that sends deadline reminders.
- Start gathering your data early to avoid stress.
Conclusion
Managing your tax matters correctly can be complex, but with the right tools and support, you can avoid mistakes and save time. With tax tips for freelancers, you can also maintain organized records and financial peace of mind.
By using bookkeeping software, keeping your administration in order and seeking professional advice, you can continue to meet all your obligations as a freelancer. When in doubt, hiring a professional is always a smart choice.
Want to know more?
Would you like to manage your tax and administrative affairs as a freelancer without stress? Discover how Balancify can help you with professional bookkeeping and tax advice. Visit our website or schedule a no-obligation introductory meeting!
