Bookkeeping for Freelancers
Freelancer Tax Germany
What is tax deductible? A question that involves a lot more for the self-employed than for employees. Freelancers finally equip their own workplaces completely, work with their own devices and in their own or rented rooms. Entrepreneurs who fully disclose all business expenses in the tax return can significantly reduce their taxes.
For self-employed to be able to deduct their expenses, it is important to record and document all operational expenses. The motto is: Collect and organize receipts! Everything you want to deduct from the tax, you must prove. Not everything is immediately comprehensible for the employees of the tax office, because not every company is the same and the necessary equipment can vary widely. If the expenses mentioned by you seem strange to the tax office, you need to know how to justify them as necessary for your independence. And for things that you theoretically could also use privately, it must be provable that you need them mostly professionally. Otherwise it will not work with the withdrawal from the tax.
Depreciation: Not all business expenses are immediately included in the tax return for the year in which you made a purchase. Some you must write off over several years. This distributes the expenditure over a fixed period from the point of view of the tax office. The amortization period usually depends on the assumed useful life.
This way you can save taxes by writing off: there are depreciation tables for individual sectors. They specify the periods over which certain acquisitions are to be written off. In order to carry out the depreciation correctly, the purchase price must be divided by the number of depreciation years. In each year of depreciation, the corresponding share is then tax deducted.
Work equipment: In addition to office supplies, such as writing utensils, paper and folders, the tax-deductible work equipment also includes the company's technical equipment.
Study: If you use a room in your home for your freelance work, you can deduct the full cost of your study from your profit as a tax-deductible cost. This requires that you do not use the room privately. If the space is used both professionally and privately, then the share of occupational use is estimated. In addition to the proportionate room rent, the costs for your study also include purchases for the equipment of the room, such as curtains as well as the costs of renovation.
Car: Your company car is such a depreciation object. How you set it off also depends on how much you drive privately.
Bahncard: If you have saved so much by the BahnCard in the course of the year in the case of professional train journeys that the purchase was worthwhile, then it does not matter to the tax office whether you also used the card for private journeys.
Workwear: You need special work or protective clothing and always wear a jacket with a printed company logo on the customer? Occupational workwear can be tax deductible.
Incidental Business Costs: Use of your office and workspace incurs incidental business costs. You can deduct the operating costs in full. If your workroom or office is in your own flat, then usually no separate billing for the workspace by the landlord can be created. In this case you must calculate the operating costs proportionately. A meaningful proportion results from the area of your working space in relation to the total area of the apartment.
Office furniture: All furniture that you use to furnish your study and that serve to carry out your commercial activity can be taxed.
Computer: Not only Internet companies or online shops need computer equipment. As technology advances, businesses, businesses, tradespeople, and service providers all need computers and peripherals. Therefore, computers are also deductible for freelancers from the tax.
Coworking Space: You do coworking regularly because you do not have your own office? Or you use coworking spaces if you are on a business trip and want to find a place to work in a different city in an uncomplicated way. Then be sure to save all receipts over the paid days, weeks or hours.
Business trips: (French-fries) Pommes red and white at the motorway service area or a coffee in the on-board restaurant of the train: In the event of prolonged absence from one's own office, self-employed persons can be credited additional meal expenses in the tax return. Depending on the duration of the absence and whether it is domestic or foreign travel, lump sums apply. These are reduced if, for example, your client provides the food.
Printer: A printer is part of the standard office equipment. Every few years, a new acquisition is expected here. The tax office also sees it that way.
Own contribution: Under certain circumstances, the owner's contribution is tax deductible for landlords. In-house services include expenses incurred in the construction or expansion of a rented property. In-house services include the costs of materials as well as disposal and travel costs.
Energy costs: The electricity consumed as part of your self-employment is fully deductible. This is especially true for the electricity that comes from the activity and stay during working hours in your office or study. Who works in the home office and therefore can not create their own billing, must use its power consumption proportionally to sell it.
Bean counter, your inner: you should always have it with you when it comes to business expenses. He helps you to keep every receipt, to take off and make notes. He even sticks receipts and tickets printed on thermal paper to an A4 sheet of paper. Then he notes next to what the issue was, copies the page and staples both notes. He does that so that you have a readable version of the document if the original fades to spongy gray. All lovely guy, that inner bean counter! And maybe you already have the upgrade: Inner Bean Counter 4.0. The archives the same digitally.
Going out to eat: Anyone who goes out to eat with business partners for professional reasons can claim part of it for tax purposes. Make sure that the bill or cash receipt already correctly identifies the business lunch.
Textbooks: tax deductible. But if the titles do not explain why you are here for a professional purchase, just write a few lines to it. This will explain to the tax office why, for example, you need books on rhetoric or work organization as a computer scientist.
Travel costs: You can deduct the costs incurred for company journeys for tax purposes. You can also deduct your travel expenses if you travel by private car on business. If you use your car with a share of at least 10 percent also professionally, then you can deduct the actual cost of professional travel. For this you must collect the appropriate documents and keep them for presentation. On the other hand, if the car is only occasionally used for professional travel, then you can apply a mileage allowance of 30-euro cents per kilometer driven. You can also deduct travel expenses incurred for using public transport from the tax.
Flyer: The cost of printed materials you use, e.g. as product advertising or for information, of course, are business expenses.
Training: Freelancers who participate in further education or training can deduct the costs incurred for this from the tax. These include seminar fees, travel and accommodation expenses as well as additional meals.
Low-value assets (GWG): These are things that cost no more than 410 euros. You can write off such purchases immediately and in the year of purchase and payment. You do not have to, you can also use the depreciation periods. Example: You buy a rug for your professional office. He should keep 8 years according to the depreciation table. But now you have made a bargain: The net price is less than 410 euros. Then you do not have to distribute the depreciation over 8 years but can fully credit it in the year of acquisition.
Liability insurance: tax deductible.
IHK, Chamber of Commerce and Industry: Contributions to chambers, professional associations and interest groups are tax deductible.
Church tax is a special edition, albeit not operational. Special expenses lower the taxable income.
Logo: A designer has designed a company logo for you that now stands on your letterhead and the company nameplate. Of course, the fee for this service is an operating expense.
Rent for office space or pro rata rent for a study in a rented apartment: deductible!
Qualification: You can of course deduct amounts you pay for further training, additional qualifications, etc. from the tax.
Billing Software: Business Edition!
Writing utensils: Small cattle are also crap, they say. And so you should also keep receipts and bills from the discounters discounter. Every cardboard copy paper counts, as well as every highlighter and pad of sticky notes.
Telephone: If you use your (mobile) phone professionally and privately, make sure that you have individual proof of identity. Proofs over a few months, as the share is private / professional and set in the future according to percentages of your phone bills. Well justified, that should not be a problem.
Virus scanner: The software license that protects your professional computer from malware is an operating expense. The licenses for private PCs are not.
Kettle: The appliance in your home kitchen will not go through as an operating expense, even if you work in the home office. But if you buy a kettle for the tea kitchen of your company or your external office, then this is an operating expense.
Yoga Class: Private booked you cannot deduct the sports lessons from the tax, but maybe your health insurance will reimburse part of the expenditure.
Ornamental plants: What you purchase on plants especially for waiting rooms and company rooms or rent for a company party, you can note down as an operating expense.
Freelancer Tax Germany
Expat Freelancer Tax Serivce
A brand of
Steuermaus (Pty) Ltd
Phone: +49(30) 12083342
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