Which deduction do starting freelancers miss most often?

The deduction that starting freelancers miss most often is start-up costs (aanloopkosten), the business costs you made before you registered with the Chamber of Commerce and that you may still deduct afterwards. On top of that, the small-scale investment deduction (kleinschaligheidsinvesteringsaftrek), the business share of your phone and workspace, training and business kilometres (zakelijke kilometers) often go unclaimed. You can find more topics for entrepreneurs on our entrepreneurs hub.

What are start-up costs and why do starters forget them?

Start-up costs (aanloopkosten) are business costs you made before your business officially began, and that you may still deduct once you have started. Think of a course, market research or material you bought to prepare your business. Many starters do not know these costs count and throw away the receipts, while you should keep them precisely so you can deduct them later.

When are you entitled to the small-scale investment deduction?

The small-scale investment deduction (kleinschaligheidsinvesteringsaftrek, KIA) applies if in a year you invest more than a certain threshold in business assets. Because the amounts and the threshold change yearly, always check the exact limits and percentages on the Belastingdienst website. Starters often overlook this deduction because they do not realise separate investments together exceed the threshold. Unsure whether a purchase still makes sense before year-end? Then read whether you need to buy anything before 31 December.

Can you deduct phone, internet and workspace?

Yes, the business share of your phone, internet and a workspace is deductible, provided you can substantiate the business use. If you use a subscription partly private and partly business, you deduct only the business part. Keep a reasonable split and save the invoices, so you can show how you reached your split if the Belastingdienst asks.

Do training and business kilometres count too?

Professional literature, courses and training that benefit your business are business costs and therefore deductible, just like your business kilometres (zakelijke kilometers). For those kilometres there is a fixed reimbursement per kilometre you can record as a cost. Log your trips and your study costs in your records, because without support you cannot deduct these items with peace of mind.

How do you make sure you miss no deduction?

The best way to miss no deduction is tight bookkeeping in which you keep all receipts and invoices from day one. Note per expense whether it is business and store the proof digitally. When in doubt, check the conditions, thresholds and percentages with the Belastingdienst, so you deduct only what is allowed and leave nothing that is yours to claim.

Source: Belastingdienst, belastingdienst.nl. Amounts, thresholds and percentages are date-sensitive; check the current scheme before you decide.

Author: Mariusz Mojka.