Did you recently become self-employed and need to fill out your first tax return since you started freelancing? Here, Accountable gives you five tips when it comes to declaring your income as a self-employed sole trader. Documents, deadlines, developments… some great reflexes to adopt from the very start!
1. Anticipate tax return deadlines
2. Keep your purchase and sales records up to date
3. Prepare your documents in advance
4. Stay up to date with tax developments
5. Follow the guide to completing your tax return
1. Anticipate tax return deadlines
Filing your taxes is rarely a pleasure. But doing it at the last minute, or even late, won’t change one hard fact: sooner or later, you’ll have to file that tax return.
Dates to remember when you’re self-employed
Are you self-employed as a sole trader in Belgium? If so, the income from your freelance activity falls into the category of ‘specific income’. That means you need to complete part 2 of the tax declaration, the one for so-called ‘complex’ tax returns.
The deadline for submitting your tax declaration varies depending on how you submit it:
- Online via Tax-on-web (MyMinfin): in October
- Paper version sent via the post: 30 June
The deadline for ‘normal’ online declarations, 15 July, no longer applies when you’re self-employed. Does MyMinfin still show this earlier deadline on your declaration? Don’t worry; the platform will automatically adjust the deadline once your ‘specific income’ has been indicated.
Are you self-employed in a secondary occupation? Your tax obligations are the same as for those self-employed in a main occupation. However, your tax return includes some specific points you should be aware of.
What happens if you miss the deadline?
If you submit your 2024 tax return late, or not at all, you risk administrative sanctions. You’ll receive a fine and an increase in the taxes due on the portion of income not declared or declared late.
Getting a deadline extension is extremely rare. FPS Finances may grant one in the event of force majeure or for serious reasons such as a fire, theft or an urgent medical intervention. So you understood right: that deadline is one to respect!
2. Keep your purchase and sales records up to date
As a newly self-employed sole trader, you’re most likely keeping single-entry, or simplified accounts (at least if your annual turnover is under €500,000). This means you can completely manage without an accountant if you wish. Filling out your tax return as a freelancer should go fairly quickly, provided your own records are complete and up-to-date.
The secret: staying organised throughout the year. Systematically record your expenses and invoices in a purchase journal and a sales journal. Or use software like Accountable. Based on your purchase and sales invoices and receipts, Accountable generates your tax return for you, and gives you an estimate of the amount of income tax due.
3. Prepare your documents in advance
Gathering all the necessary documents for your tax return will help you provide accurate information to the tax administration.
You don’t need to submit your proof of payment, certificates and other tax documents along with your tax return. However, it’s mandatory to keep them for seven years.
Essential documents
Gather all the documents related to your income:
- Income slips: for your professional or pension income.
- Tax form 218.10: if you’re self-employed in a secondary occupation, remember to prepare this form, which includes your annual salary data.
You’ll also need to list and prove your professional purchases: travel costs, means of transport, advertising, etc. Prepare the following supporting documents:
- Purchase journal: Remember this accounting obligation? This document constitutes valuable proof.
- Bank statements: Store them carefully too.
- Tax certificate relating to your social security contributions: These are considered professional expenses.
Finally, have your bank account number (IBAN) handy. The tax authorities will transfer any tax refund to your account.
Special situations
Depending on your situation, you may have to attach additional supporting documents. This would be the case if, for example, you had:
- Real estate in Belgium: tax assessment notice of your property tax (‘avertissement-extrait de rôle au précompte immobilier’/’aanslagbiljet onroerende voorheffing’).
- Income from foreign sources: your bank statements.
- A mortgage: attestations received from your bank (basic, interest payment, and repayments).
- Paid alimony: your bank statements.
- Saved for your pension: pension form 281.11.
- Childcare costs for children under 14 or under 21 with a severe disability: certificate 281.86 from FPS Finances.
- Worked for service vouchers or for local employment agencies.
There are many special cases. Do you have a question about your situation? Ask the Accountable Tax Coaches.
💡 Accountable tip: Did you move to a different region in Belgium in 2023? Each region has specific tax advantages, so find out how things work in your new region!
4. Stay up to date with tax developments
Every year brings its share of changes for the self-employed: rent deduction, the copyright regime, tax reductions, dependents, etc.
So take a moment each year to check for any updates so you can optimise your declaration and stay compliant. Accountable’s blog and YouTube channel are a great way to stay up to date with the latest news.
5. Follow the guide to complete your tax return
If you were previously an employee, you may have received a proposal for a ‘simplified declaration’. Now that you’re self-employed, this is no longer relevant. But you can still do your tax declaration yourself as a self-employed sole trader.
With Accountable, you’ve got simplified, online accounting and the guarantee of a correct tax return. Any doubts? Ask our Tax Coaches for help. Because the tax authorities can audit you several years after you submit your tax declaration. And if an error has managed to creep into your return, know that Accountable covers your fine. So no stress! Try our app for free now.
