Understand the concept
It can seem a little confusing to get a complete handle on it with b-income and everything that follows from it. But just calm down.
With b-indkomst.dk you get 100% control of all elements - fees, driving deductions, other deductions, investments, depreciation, tax - and much more! Here comes a brief introduction to what these concepts cover.
However, it is not the intention that you should be a specialist in these things - you do not need to be at all to make use of b-indkomst.dk. We have complete control over everything you are legally required to live up to. Then you can concentrate on what you are good at.
When you have B-income, you are responsible for keeping track of your fees (your B-income), driving deductions, other deductions and depreciation. Unfortunately, many people with a B-income experience an unforeseen residual tax. b-indkomst.dk keeps complete control of everything regarding your B-income.
100% deduction on your license
Your information on b-indkomst.dk is 100% anonymous. Therefore, you do not have to provide CPR number or other private information.
If you have had transport costs in connection with your b-income job, you can deduct them from your b-income. There are different rates depending on whether you drive a car, motorcycle, EU moped, moped or bicycle - yes, there is even a deduction rate for driving to / from work by bike. These rates vary depending on how far you drive in total. But you do not have to worry about all that - at b-indkomst.dk you just have to enter your from and to address, and the system does the rest. If you have costs for planes, buses, trains, taxis or other, b-indkomst.dk of course also handles it. You must be able to document your deductions with SKAT.
What is a driving deduction?
You can only depreciate something if you have an asset to depreciate on. An asset is just such an investment, which was mentioned above for an amount greater than DKK 12,300 (the 2011 limit set by the Ministry of Taxation). For example, if you are a musician and buy a marimba for DKK 40,000, you can not deduct all DKK 40,000 in the same year. No, you have to write off the value of the marimba. You can do this with up to 25% per year. In other words, you can write off DKK 40,000 in the first year * 25% = DKK 10,000. Next year, you can write off 25% of the remaining amount (DKK 30,000) = DKK 7,500. If you use b-indkomst.dk, you just have to state what you have bought (the marimba), then b-indkomst.dk does the math - also for next year, next year again and so on. It is a condition that these are fixed assets that are used in the acquisition of income and that must be used as such over a number of years.
What is depreciation?
In addition to driving, as a b-income recipient you may have other costs that are directly related to your b-income. You can also deduct these costs. It is impossible to make a complete list of deductible expenses, and what they may be, of course, also depends entirely on what activity your b-income originates from. Here are some examples:
Musician: Blades for your saxophone, mouthpiece for your trumpet, muffler for your trumpet, rental of rehearsal room, rental of equipment, etc.
Doctor: Medical bag, stethoscope, etc.
Lecturer: Computer (however, SKAT may think that only about 10% of the value of the computer is deductible, as it can also be used privately. This is a matter of discretion that can be discussed with SKAT. This of course applies in general to computers and not only to speakers.)
Author: Computer (see above), courses, other materials, etc.
Journalist: Paper, writing utensils, dictaphone, courses, special software, etc.
Actor: Equipment, courses, make-up, etc.
Sports teacher: Equipment, courses, etc.
There is an upper limit to how much a single item must cost for it to be deducted for one year (this is also called immediate-depreciation). For 2011, this limit is DKK 12,300, but the amount varies from year to year. If you buy something that is more expensive than this limit set by SKAT, it is called an investment. But you do not have to worry about all this if you use b-indkomst.dk. Then it is impossible for you to make mistakes.
What are other deductions?
To live up to SKAT's requirements for documentation, costs and investments are required: Written receipt / invoice containing date, indication of the purchased item, amount, name and address of both buyer and seller and company stamp. There must also be documentation of the payment, which is especially important if paying in cash. For purchases of more than DKK 10,000, b-indkomst.dk recommends that no cash is paid, but Dankort, other cards, online banking or post office are used. The documentation must be kept for a minimum of 3 years. If, for example, a CD is purchased, it is not enough that there is simply a "CD" on the bill, the name of the specific CD purchased must appear. A cash receipt is thus not sufficient documentation.
Incidentally, it should be noted that regarding expenses for board and lodging, B-income recipients can NOT use these rates, they can only be used by A-income recipients. B-income recipients must use the actual costs incurred for board and lodging.
What is sufficient documentation?
What you must declare to SKAT is your b-income less all your driving deductions, your other deductions and your depreciation. Unfortunately, there are a lot of people who fool themselves for a lot of money because they forget a lot of deductions and depreciation. It does not happen for you if you use b-indkomst.dk.
What should I report to SKAT?
When you use b-indkomst.dk, you are clearly shown where in your annual statement you must write which number. And you get the exact explanation of why that is exactly the number you need to give. You get an overview of all your income, driving deductions, other deductions and depreciation. You thus never have to be nervous about being called to a "cod feast" at SKAT. Of course, you should always make sure to save all your vouchers.
Which box in the annual statement should I use?
NO! You will not receive any unpleasant surprises in the form of residual tax if you use b-indkomst.dk. Just remember to enter your b-income jobs, deductions and investments, then you can always (yes, even as soon as you have entered new information!) See if you need to set more money aside for SKAT, or you may have had so many deductions that you can afford the extra Christmas present for your girlfriend. B-indkomst.dk holds your hand all the way, and makes it very simple for you to have an overview of a source of income that can be very difficult to handle. A prerequisite for not receiving post-tax is of course that your other tax information (eg regarding A-income) is registered correctly.
Do I get unpleasant surprises in the form of residual tax?