Understand the concepts
It can seem a bit unmanageable to get a handle on B income and everything that follows from it. But don't worry. With b-indkomst.dk you get 100% control over all elements - fees, driving deductions, other deductions, investments, depreciation, tax - and much more!
Below is a brief explanation of what the most used terms cover. Of course, it is not intended that you have to be a specialist in these things - you do not have to be in order to use b-indkomst.dk.
We have everything under control that you are legally obliged to comply with. So you can concentrate on what you are good at.
Membership of b-indkomst.dk is 100% deductible and b-indkomst.dk will automatically take care of this deduction for you.
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.
Think of the advance statement as a budget. It is the budget for your next income year. In November, you will have the opportunity to correct the budget (advance statement) for the next year.
While the advance statement is the budget for a given year, the annual statement is the one that shows how the year actually turned out in a financial sense. So the annual statement is the result for the year.
The advance statement for the coming year is available in November of the previous year. The annual statement for a given year is typically available from SKAT in mid-March of the following year.
At the bottom of this page you can see a timeline which shows when it is time to deal with the advance statement and the annual statement.
What is the annual statement and the advance statement?
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 scooter, moped. Yes, there is even a deduction rate for cycling to/from a B income job. These rates vary depending on how far you drive in total. But you don't need to worry about all that - at b-indkomst.dk you just need to enter your from and to address and the system will do the rest. You can also enter the number of kilometers driven yourself if you do not want the system to calculate the distance for you. (We use google maps to calculate distances.) If you have costs for flights, buses, trains, taxis or anything else, b-indkomst.dk will of course also handle that. Remember that you must be able to document your deductions to SKAT. You can of course also upload attachments to b-indkomst.dk, so you have it all together in one place.
What is driving allowance?
You can only write off something if you have an asset to write off. An asset is such an investment, which was mentioned above, where the amount is greater than DKK 15,000 (the 2023 limit). For example, if you are a musician and buy a marimba for DKK 40,000, you cannot deduct all DKK 40,000 in the same year. Instead, you must depreciate the value of the marimba over a number of years. You can do that with up to 25% per year. So in the first year you can write off DKK 40,000 * 25% = DKK 10,000.
The 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 enter the amount of your investment (e.g. the marimba for DKK 40,000), then b-indkomst.dk does the math - also for next year, next year again and so on. It is a condition that these are operating assets which are put into use when earning income and which must be used as such over a number of years. There must therefore be the necessary connection with the B income.
If you buy something that is cheaper than the set limit (DKK 15,000 for 2023) it is called a deduction. But you don't have to worry about all this if you use b-indkomst.dk. The system automatically alerts you if you are about to create an investment that should have been created as a deduction or vice versa. So it is virtually impossible for you to make mistakes if you use b-indkomst.dk.
And although in the example here we use 2023 as an example, the rate is different in 2024, etc. - but you don't have to think about that either, because all relevant rates are updated every single year, or as soon as there are changes in the rates.
What is depreciation?
In addition to driving, as a B income recipient, you may have other costs associated with your B income. You can also deduct these costs. It is impossible to make a complete list of deductible costs, and what they may be depends entirely on the activity from which your B income originates. Here are some examples:
Musician: Reeds for your saxophone, mouthpiece for your trumpet, mute for your trombone, strings for your guitar/bass, rental of practice room, rental of equipment, etc.
Doctor: Medical bag, stethoscope, etc.
Speaker: Computer (however, SKAT may think that only approx. 10% of the computer's value is deductible, as it can also be used privately. It is a matter of discretion which can be discussed with SKAT. This of course applies in general to computers and not only for lecturers.)
Author: Computer (see above), courses, other materials, etc.
Journalist: Paper, writing instruments, 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 can cost for it to be deducted for one year (this is also called writing it off immediately). For 2023, this limit is DKK 15,000, but the amount varies from year to year. If you buy something that is more expensive than this fixed limit, it is called an investment. But you don't have to worry about all this if you use b-indkomst.dk. The system automatically alerts you if you are about to create a deduction that should have been created as an investment or vice versa. So it is virtually impossible for you to make mistakes if you use b-indkomst.dk. And although in the example here we use 2023 as an example, the rate is different in 2024, etc. - but you don't have to think about that either, because all relevant rates in the system are updated every single year, or as soon as there are changes in the rates.
What are other deductions?
In order to meet SKAT's requirements for documentation, the following is required for costs and investments: Written receipt/bill containing date, indication of the purchased item, amount, name and address of both buyer and seller and company stamp. There must also be documentation for the payment, which is particularly important if payment is made in cash. For purchases of more than DKK 10,000, b-indkomst.dk recommends that you do not pay in cash, but instead use online banking or a payment card. The documentation must be kept for a minimum of 3 years. If, for example, a CD is purchased, it is not enough that "CD" appears on the bill, the name of the specific CD purchased must appear. A receipt is therefore not sufficient documentation.
Furthermore, it should be noted that regarding expenses for board and lodging, B income recipients CANNOT use these rates, they can only be used by A-income recipients. B income recipients must use the actual included costs for board and lodging.
What is sufficient documentation?
You must provide information of your B income to SKAT. This will often be stated for you by your B income employers, but it is your responsibility to ensure that it is stated correctly on your behalf. Too little can be stated, but sometimes too much as well! This can happen if the person who declares on your behalf uses the wrong CPR number. Therefore, it is crucial that you always have 100% control over your B income - you have that if you use b-indkomst.dk.
In addition, you must provide information of your deductions. Only you know this amount – because who would know, for example, how far you have driven on various jobs in your own car? If you do not enter your deductions yourself, you will miss out on them - and thus pay too much in tax. Unfortunately, there are many people who cheat themselves of a lot of money because they forget a lot of deductions and depreciation. This will not happen to you if you use b-indkomst.dk.
What should I report to SKAT?
Do not worry! We show you exactly what should appear in which fields of your annual statement. On the page "Annual tax return" in b-indkomst.dk, both fields and what should be written in each field are shown. And you can always track why it is exactly that specific number you should enter in your annual statement. You get an overview of all your income, driving deductions, other deductions and depreciation. You thus never need to be nervous about being called to a "cod feast" at SKAT - and should that happen, you can easily generate a PDF report covering the entire income year in question, where all the figures match and can be explained. Remember to save all your receipts - you can of course also upload them to b-indkomst.dk, so you have everything together in one place. No more binders.
Which fields in the annual statement should I use?
No! You won't get any unpleasant surprises in the form of tax arrears if you use b-indkomst.dk. As long as you remember to enter your B income jobs, deductions and investments, you can always see whether you need to put more money aside for AM contributions and B tax. b-indkomst.dk holds your hand all the way, and makes it very simple for you to have an overview of an income source that can be very difficult to handle. Of course, a prerequisite for not getting arrears is that the information you enter when you create an income year is correct. Here we ask, among other things, about your A income. We do this so that we can calculate the tax on your B income as accurately as possible, which, among other things, depends on the extent to which your personal deductions are used in your A income.
Will I get unpleasant surprises in the form of tax arrears?