What taxes and amounts do I have to take into account as an enterprising coach?
What taxes and amounts do I have to take into account as an enterprising coach?
You know it well enough, but you are still surprised every time. As soon as you register with the Chamber of Commerce, the tax authorities also know that you are doing business. What are the most important taxes you have to take into account as a coach? And what should you put aside to avoid surprises? The most important taxes are listed for you below.
The VAT
VAT is abbreviated for Value Added Tax. What does that actually mean? In simple language: tax on your turnover. You must first pay VAT on your turnover (0%, 9% or 21%). You charge VAT to your customers, clients or coachees, but you must also pay this VAT to the tax authorities. Take this into account when pricing your customers. On the other hand, you can also reclaim the VAT that is charged to you. You must submit and pay the VAT return every quarter. Even if you have not made any turnover. The tax return is submitted every quarter and must always be received by the tax authorities no later than the following dates:
- 30th of April
- July 31
- October 31st
- January 31st
And make sure (if you have to pay on balance instead of getting money back) that the money must be received by the tax authorities before these dates. Isn't that the case? Then you have a high chance of receiving a fine. A kind of postcode lottery, but with more guarantee on “prize” 😉
Fun fact: there are banks where you can open an account where, as soon as a customer payment is received, VAT amounts are automatically reserved. Very useful, because then you will not be faced with any surprises regarding VAT.
Contribution Zvw (Health Insurance Act)
Hmmm… What do I have to pay? Don't I pay all my health insurance properly? That's right, in addition to the premiums you pay to your health insurer, this is an extra contribution to your health insurance. The principle is simple: The more you earn, the higher the ZVW amount you have to pay. Self-employed people pay 5,75% for 2021 up to a maximum amount of € 3,352.88. You will see this reflected in your income tax return.
Income tax
Everyone who has income from work and home in the Netherlands pays income tax and national insurance contributions. National insurance is legally required social insurance that insures us against the financial consequences of old age, death, special medical expenses or children. The total amount you pay in income tax and premiums also depends on your income and the deductions to which you may be entitled.
How much should I reserve for my income tax?
It is not immediately possible to say how much income tax you have to pay. That depends on many different factors. As a guideline, I use 30% for a profit of < € 70,000 and 45% for a profit > € 70,000. And even then, it could be hundreds of dollars off. I sometimes also use a calculation tool if I want to know it a little more precisely. Do you want to know which calculation tool? Please contact me.
NB!
Please note: Tax amounts are amounts that you must pay with certainty. But are you also thinking about buffers for, for example, your pension, disability, a future investment or financial setbacks?
