1: Deduction or investment?

I have bought an instrument for DKK 10,000 which I want to write off, but I have doubts about whether it should be done under "Deductions" or "Investments" in b-indkomst.dk?

If the amount of a purchased asset is less than DKK 12,900 (this is the limit for 2016 - the amount limit is indexed each year) the cost can be deducted in one and the same year and must thus be registered on the tab "Deductions". If, on the other hand, the amount is greater than DKK 12,900 (2016 amount limit), it must be registered under "Investments".

 

There may be special cases where you can do it differently, but this is the absolute main rule. Should you enter an "too high" amount such as "Deduction", then b-indkomst.dk will make you aware of this, so it is difficult to do something wrong in this direction. Remember that you can place the cursor on top of the yellow "Help" on all pages and then you will be able to get help with the entry on that page.

2: How do I change municipality / address on b-indkomst.dk?

I am moving from Aarhus to Copenhagen on October 1, 2016. How do I change this relationship in b-indkomst.dk?

Even if you move municipality during a calendar year, you can not choose which municipality you are taxable for. It is your population register address per. d. 5 September, which determines which municipality you are liable to tax. If your population register address on 5 September was in Aarhus, you should not change it.

Technically, you change your tax municipality on b-indkomst.dk by selecting "Edit" in the column "Edit income year setup". Here you then select the relevant municipality in the drop-down menu "Residence municipality".

 

As you have probably learned when creating a job, it is your primary address that is automatically selected as the first from address. If you are very bothered by - the rest of that year - having to change this to your new from address, then you can consider the following:

 

If you have moved address within the same municipality, then there is no problem in changing the address during an income year.

 

However, if you have moved from one municipality to another, then you must be aware that the address (municipality) you choose affects the calculation of your municipal tax. It is typically the address you have on 5 September that determines to which municipality you pay municipal tax.

 

However, there is not much difference in the municipal taxes, so it will probably not disturb too much in your B-income accounts if you change your address - and therefore also your municipality. But it can mean a small difference if you at  b-indkomst.dk  use a different tax municipality than the municipality you will pay tax to for the income year in question.

3: Why can I not get the right address in b-indkomst.dk?

When I search for e.g. 'Tivoli Kbh' does not appear in the search field but instead in all possible foreign places. Can I do something smarter?

The address search in b-indkomst.dk speaks - via the API - together with Google Maps. Instead of typing "Tivoli Kbh", type the specific address that Google Maps would like to recognize. There may be a few cases where you can find what you are looking for if you use Google Maps on the web, but can not on b-indkomst.dk. But this is due to Google's API, which b-indkomst.dk does not have power over.

 

In general, it is important to remember to write the number on the road / street, as the distance is calculated accurately, which is not possible if you simply state eg "Roskildevej".

 

However, no floor / floor must be specified, as the calculation is made 2-dimensionally and there is no deduction for going up / down stairs :)

4: Why can't I create a future income year?

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You can only create an income year once the tax rates for that year have been decided. The rates are part of the Finance Act and are therefore typically not fixed until the end of the year - sometimes not until mid-December. Even when the Finance Act itself has been passed, sometimes a few rates are missing, which only fall into place a little later. As soon as the tax rates for the coming year are fixed, you will be able to create the income year on b-indkomst.dk.

5: How much can I write off?

I am going to buy a guitar for around DKK 50,000 and will set up the purchase as an investment on b-indkomst.dk. Is it possible that I can deduct 25% of the amount annually, when I only earn around DKK 13-14,000 annually in fee income?

When you have B-income and buy an instrument to use it in connection with your B-income and the amount (for 2016) is over 12,900 DKK, well then you just have to create it as an investment on b-indkomst.dk. Here you can then choose to depreciate the amount by between 0% and 25% per year.

 

If you depreciate DKK 50,000 by 25%, it gives a depreciation the first year of DKK 12,500. As long as you have a B-income that is greater than the DKK 12,500 * (* = see below for exact amount), then you can write off with 25%. But if you e.g. has a driving deduction in connection with your B-income (or eg other smaller deductions), then you may find yourself in the situation that you - in the first instance - have a negative B-income overall. You must not do that, but in that case b-indkomst.dk will make you aware of it.

 

In your situation, you can then - very easily - change the depreciation rate to e.g. 15% or 20%, so that you do not have a negative B-income overall. The good thing about choosing a slightly lower depreciation rate is that you do not miss the depreciation. You simply save it and can depreciate by up to 25% in the next year (s).

 

* = In fact, you must earn a B-income that is higher than DKK 12,500 to be able to deduct DKK 12,500. This is because AM contributions of your B-income must first be paid before deductions can be calculated. The AM contribution is (for 2016) at 8%. Thus, you must (for 2016) earn a minimum: DKK 12,500 / (1-0.08) = DKK 13,587 to be able to deduct DKK 12,500 in your B-income. b-indkomst.dk, however, calculates this for you and draws your attention if you should run into problems in relation to your individual limit.

6: Does b-indkomst.dk take into account the basic deduction?

I am a musician and have entered income for 2016 for around DKK 35,000. The system tells me that I have to put approx. DKK 15,000 for tax. I wonder that the bottom deduction is not taken into account? Because I do not have to pay tax on the money I earn under a certain amount? Is it something I have to type in b-indkomst.dk?

It is quite correct that you do not have to pay tax on amounts that are below the bottom tax limit.

As you can see on the page "Overview", b-indkomst.dk includes the bottom tax deduction in the calculation of AM contributions and B-tax.

However, it is you who controls how large a part of the bottom tax deduction can benefit your B-income.

In fact, almost everyone with a B-income also has an A-income. And if you have A-income, the bottom tax deduction will be used according to your A-income. Therefore, it is very important that you state your expected A-income (and expected pension / SU and expected deductions in your A-income) as accurately as possible when you create the income year.

If you state, for example, that you have no A-income, then your full basic deduction will be able to go to your B-income. If it turns out that you actually had A-income, then you will probably get an after-tax, because your bottom tax deduction will then be used automatically in relation to your A-income and - because you stated when you created your income year - that you had no A-income, our system will calculate based on this information and recognize your bottom tax deduction in relation to your B-income.

SO: It is very important that you correctly state your A-income, pension / SU and deductions (in your A-income) when you create an income year. If in doubt, we recommend that you be a little careful / conservative. That is, you state a slightly higher A-income, a slightly higher pension / SU and a slightly lower (or no) deduction in your A-income than expected.

7: Can I deduct course costs and how should I register these on b-indkomst.dk?

I have completed three courses in voice / song maintenance at the Anne Rosing Institute. The courses amounted to DKK 52,000, DKK 5,500 and DKK 13,000, respectively. All three courses were completed at the same place. On which tab in b-indkomst.dk should I register the cost: "Deduction" or "Investment"?

Expenses for courses and tuition are always operating expenses and must thus be registered on the "Deductions" tab. This is because "Investments" in b-indkomst.dk must be understood as the purchase of material things, eg instruments, equipment or other "physical" assets.

But you should be aware that SKAT is very skeptical when it comes to deductions for course expenses. The starting point is that there is no deduction because courses and education are considered the establishment of a new income base. For example, book expenses in connection with university educations are not deductible for the same reason. It is thus only expenses for courses and teaching that go under the term “continuing education” or updating or maintenance of already existing competencies that are deductible.

8: Can I wait to deduct my expenses from next year when I have my first income?

I am a doctor and started running an emergency room in February 2016. However, I bought all my equipment (value approx. DKK 10,000) in December 2015, where I had no income. So my income and expenses are in two different income years. How do I handle it in relation to SKAT?

SKAT approves that you depreciate your equipment from the year in which it is used - and where the income is. There has been no significant impairment from December 2015 to February 2016, and moreover, the equipment is not something you have been able to use privately. In this case, you must therefore record your expenditure on equipment (acquisition cost) in the 2016 income year.

 

But otherwise the main rule is that if equipment is not used during the work in the year of purchase, then a valuation of the value of the equipment must be made at the time / in the later year when it is used. This is because if you have used equipment for private purposes first, then it is used and thus impaired when you start using it at the time of income acquisition.

9: May one receive remuneration on behalf of others and then benefits?

I have produced some music with a singer. A director has asked me if he can use the music for a movie, which the singer and I have said yes to. If the instructor pays me the entire fee, ie both mine and the singer's, and I then subsequently transfer her share to her, how do I avoid being taxed on the entire amount?

You should only receive payment with the amount you need. You must not have other people's salary / fees paid out. Then you risk being considered either an employer or as part of a partner company (I / S), and in this case you are neither one nor the other. So the instructor has to pay your fees separately.

10: How do I register the release of a CD in b-indkomst.dk?

I have released a CD and am in doubt about how this should be registered on b-indkomst.dk?

The production and sale of CDs can have many different accounting implications. Therefore, it is difficult to provide one accounting solution that can be used by all. Some have had all the costs of manufacturing subsidized, others have not received any subsidy. Some produce physical CDs, others publish only digitally. Some sell 10 CDs in one year, others sell the entire edition in one or two years. These differences present challenges of various kinds.

 

Most people with their own publication can refrain from VAT registration. As a starting point, income from the sale of goods is subject to VAT, and the same applies to the sale of music publishing digitally. However, VAT registration of the company can be omitted if the turnover, ie. the income from the sale does not exceed DKK 50,000 within a 12-month period.

 

b-indkomst.dk cannot, from a purely accounting point of view, accommodate all the above-mentioned situations in relation to the production of CDs and sales. So it's a small account that you may have to keep next to.
 

Our good partner, DMF, has prepared a guide on how to do in relation to the release of a CD. You can find the instructions here:

 

https://www.dmf.dk/medlemsservice/skatteraadgivning/cdsalgogskat/

In addition, it may be a good idea to contact your association, a tax adviser or SKAT in relation to the publication of a CD and the accounting techniques therein.

11: How can I make a voluntary payment of my B-tax?

I have had B income in the first half of the year. How can I pay AM contributions and tax on it, or parts of it, to SKAT before the end of the year?

You can make a payment to SKAT using e.g. Dankort via SKAT's website:

 

https://www.skat.dk/dk/data.aspx?oId=49

12: Can I deduct driving even if I have not driven in my own car?

Can I deduct driving at a job even if it is not my own car that is being used? And do I have to keep a logbook?

If you drive to / from a fee job in someone else's car or you get a lift, then you can take the so-called low driving deduction. This deduction also applies to A-income recipients. 

 

If this is the case, then on b-indkomst.dk, when you create the job, simply select: "Passenger in car / MC".

So no, you do not have to drive in your own car to get a driving deduction. But you MUST drive in your OWN car if you are to have the high driving deduction. You can achieve the low driving deduction - on an equal basis with everyone else with "normal" wage income.

Whether you need to keep a logbook using the low rate; there is no requirement for this, but SKAT can make extra demands that you must make it probable that you have made the transport to / from a fee job, in the case of long distances and especially if it is several days in a row to the same place. But otherwise you are well on your way if you use b-indkomst.dk's system. You may want to consider adding your own excel sheet where you note the mileage at start and finish.

13: Do I need to create a CVR number to deduct job expenses?

Can I deduct my expenses on a job. It could be the following: Food expenses, Bridge fees, accommodation. Is it all deductible or do I have to create CVR to be able to deduct it?

The short answer is: Yes, you can deduct the mentioned expenses. Especially with regard to food expenses, however, it is a prerequisite that you have a gaming job that is at a long distance from your place of residence. In that case, the expense can be described as "business". You do not need a CVR number for it. However, you need to remember documentation of the expenses you are deducting.

14: Can I deduct technical equipment?

I buy in between technical equipment in connection with my work. Can I deduct the equipment when I use it in my job?

Ang. your question about deductions for purchased equipment, then you may well deduct it if you use it in connection with your B-income jobs. BUT if you also use it privately / in another context, then it will only be partially deductible. For example, if you use it 20% in connection with your B-income jobs, then you will be able to deduct 20% of the expense in your B-income fees.

Overall, you can not have more deductions than you have B-income - you must not have a net-negative personal income on B-income. But don't worry, b-indkomst.dk keeps an eye on (also) and makes you aware if this should be the case.

15: When I register a deduction, do I have to include VAT? And how do I calculate the deduction percentage?

When I create a deduction on the "Deductions" tab on any equipment I have bought, do I have to write the entire amount or only the VAT? And what determines what deduction percentage I should enter?

When you have personal B-income and are not registered for VAT, you must take the entire amount as a starting point - ie including VAT.

 

Fully deductible

If you have purchased something that is fully deductible, then the deduction percentage should be set to 100.

 

Example 1: You buy saxophone blades, which you all use in connection with your fee jobs. The deduction percentage can be set here to 100.

 

Partly deductible

If what you have bought is used for purposes other than in connection with your fee income, then the cost of what you bought will only be partially deductible.

 
Example 2: You buy a computer so you can make music events, do marketing, website, etc. But you also use the computer privately. In this case, you can, for example, deduct 10% of the computer cost if you estimate that you use it approx. 10% in connection with your fee income. If this is the case, set the deduction rate to 10.

16: When do I have to register a job if the payout comes after New Year?

What do I do if I get paid for a job in 2017 that I played in 2016? I can not save my job when I enter the payment date.

As a starting point, it is the time of payment that determines which income year tax is to be paid in. So if you play a job e.g. at the end of December 2016, when you first receive the fee in 2017, the job must therefore be registered for tax purposes in 2017. You must therefore register the job in b-indkomst.dk in the income year 2017.

 

It is precisely to avoid mistakes that it is not possible to enter a payout date that is in the following income year.

17: How do I register a fare on b-indkomst.dk?

What do I do if I get a ride for a job? So I do not have to fill in the mileage figures during the job, as I do not get a deduction in this case? Should I enter the total fee incl. toll and not fill in where the job was?

If it is to be done 100% correctly, then for tax purposes there is no such thing as "travel money". Toll is to be regarded as a fee. If you enter it as such, you can of course also take the associated driving deduction.

 

If you do as you write - that is, "night" the two things against each other (you do not note the driving allowance in some places and then do not take the driving deduction either), then you are actually cheating a little in tax. This is because AM contributions must be paid before the deduction is calculated. You therefore pay 8% (2016 rate) AM contribution before you can take the driving deduction.

 

Thus, if you want a travel allowance that corresponds exactly to the cost you have - including payment of AM contributions, then you must actually make this calculation:

 

Travel costs are estimated at DKK 1,000. To this is added the 8% that must be paid in AM contributions before the driving deduction can be taken. This is done as follows: 1,000 / (1-0,08) = 1,087 DKK. Thus, 8% of 1,087 = 87 DKK can be paid and there is thus exactly 1,000 DKK to cover the transport.

18: How do I register KODA, Gramex and the like. fees on b-indkomst.dk?

Fees in the form of payments from a record company, KODA, Gramex and the like are as far as I can see given as fees on my tax return. How do I enter them on b-indkomst.dk when they are not driving jobs?

When you create the job, in the drop down menu called "Means of transport" simply select "Not used own means of transport". Thus, the address fields disappear.

 

AM contributions must be paid by KODA and Gramex, but not by library revenue nor by grants.

 

Therefore, in the case of library income and scholarships, remember to check the box "Library fees, scholarships, prizes / art support or other b-income from which no AM contribution must be paid?".

19: How do I create a job that does not involve transportation?

If I have not used my own means of transport or have not had any transport at all in connection with my fee job, how do I create it on b-indkomst.dk?

When you create the job, in the drop down menu called "Means of transport" simply select "Not used own means of transport". Thus, the address fields disappear.

20: How do I create a driving deduction if I have driven to / from a trainee who is not on the same day as the job / fee income?

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There are two ways to create such a travel deduction:

 

1: The easiest way is probably to create a "job", which is then the practitioner and where the fee is 0, but where you just use the "job" to register the run.

2: You can create the run together with the job - it is i.a. therefore there is a start and end date for the job. The dates are not so crucial in the tax sense as long as they are within the same calendar year.

21: What expenses can I deduct?

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Overall, the expenses called operating expenses can be deducted and they are defined as "the expenses incurred to acquire, secure and maintain the year's income". In addition, there is the same rule for the tax depreciation of fixed assets.

Note that deductions for expenses presuppose that there is income with which the expenses are related. There must be a business purpose in incurring the expenses.

Some expenses are only partially deductible. For example, if you buy equipment that you also use privately, the cost of this equipment will only be partially deductible. If, for example, you use the equipment 20% in connection with your B-income jobs, then you will be able to deduct 20% of the expense. In the first instance, you must assess for yourself how much you use the equipment in connection with your B-income fees - and thus what percentage can be deducted.
 
The sum of your deductions and depreciations in field 29 of the annual statement must not exceed your B-income after deduction of your AM contributions (currently 8%) - you must therefore not have a deficit in personal income. But don't worry, b-indkomst.dk (also) keeps an eye on this and makes you aware if that should be the case.