Deductible expenses for self-employed in a secondary occupation: how does it work?

If you’re self-employed in a secondary occupation, you’ve probably wondered about this before: is it really worth claiming your expenses and keeping all those receipts? The short answer? Absolutely. And here’s why.

The highest tax bracket

When you have a side hustle alongside your main job, your self-employed income is added on top of your salary. If you’ve chosen to set up as a sole trader, like most people in your situation, this means that everything you earn on the side might get taxed at the highest bracket of your total income—or even higher. And that’s definitely something you want to avoid.

A great way to optimise your taxes as a self-employed in a secondary occupation is to claim business expenses. By doing so, you reduce your net profit and, in turn, the amount of tax you need to pay.

What expenses can complementary self-employed claim?

Good news! You can claim a wide range of business expenses to reduce your taxable income. Claiming expenses is allowed for self-employed in Belgium, even in a side business. Just make sure everything stays reasonable and that you genuinely need it for your side hustle. And you might be able to claim more than you think.

Equipment purchases 💻

When starting as a complementary self-employed, you’ll likely need things like a smartphone, laptop, or printer. The same goes for your internet connection and mobile phone plan.

If you use these items exclusively for work, you can claim 100% of the cost. That means the entire purchase amount can be deducted from your taxes.

If you use them for both personal and business purposes, you can calculate what percentage is for work. For example, if you buy a €1,000 laptop and use it for 24 hours per week for work and 8 hours for personal use, you can claim €750 as a business expense (24 out of 32 total hours).

Home office expenses 🏠

The same principle applies to your home office. Think about the furniture and office supplies you need. But also, don’t forget things like heating, water, and electricity. For these, you’ll look at the size of the space you use for work. For example, if you’re a freelance graphic designer in a secondary occupation, how many square metres is your office at home?

Other work-related expenses for your side business 📚

There are also expenses that are clearly only linked to your side hustle. These can be fully claimed. Think about accountant fees, business cards, or that specialised software you need for your side gig. Even courses and training (yes, Udemy counts!) that help you get better at your job can be claimed. You can even include a subscription to a newspaper or magazine, as long as it’s relevant to your business.

Claiming your car as a business expense 🚘

Can you claim your car and fuel costs as a business expense if you’re freelancing on the side? Absolutely! Again, it depends on how much you use the car for your side business versus your main job and personal use. The type of fuel and CO2 emissions are also taken into account to determine how much you can actually deduct.

You can read all about claiming your car as a self-employed in a secondary occupation here.

💡Accountable tip: Our ‘business expense search tool’ shows you exactly what you can claim and offers suggestions. Have you thought about claiming your reading glasses as a business expense, for example?

Deductible expenses can be backdated

Here’s another good thing to know: you can claim expenses made up to three months before officially starting as a complementary self-employed, as long as they’re clearly linked to your business activities.

What about VAT?

Don’t forget: claiming expenses to reduce your taxes also involves VAT, which you can deduct as a percentage. Of course, you need to be VAT-registered for this to apply. Then, the amount of VAT you can claim depends on how many days per week you work on your side gig. For example, if you work five days a week in your main job and two days in your own business, you can claim 2/7 of the VAT.

Flat-rate business expenses for side-hustle freelancers

Maybe you’re thinking that collecting all those receipts and invoices sounds like a lot of hassle, eating into your already limited free time. So, you’re leaning towards the flat-rate option, which allows you to deduct a standard percentage of your profit. Just like employees, this flat-rate deduction is 30% of your profit (excluding social security contributions and goods purchases), with a maximum of €5,750 in 2024.

But be careful: the flat-rate deduction is only the best choice if you have very few business expenses. So don’t be put off by the idea of claiming expenses and gathering evidence.

With Accountable, it’s a lot easier. Claiming expenses as a side-hustle freelancer is as simple as snapping a photo of your receipt or invoice and uploading it. Our smart app links it to the correct expense in your bank account.

Try Accountable free for 14 days!

FAQ: Frequently asked questions about business expenses for self-employed in a secondary occupation

Are you, like many side-hustle freelancers, unsure about how much you actually take home after taxes?

To help answer that question, we’ve developed a tool that gives you the answer. With this tool, you can see in real-time what your net income will be and how you can optimise it by claiming the right business expenses.

Try Accountable now – 100% free! ✨

Valesca Wilms

As content marketing lead at Accountable Belgium, Valesca writes about freelancing, self-employment, and taxes based on her own experience as a freelancer.