Creative bookkeeping sounds negative and exciting. Yet this is not the case. There are many legal options to influence your profit, so that it is one year higher and the other a bit lower. For example by means of: Investing, Investment Allowance, Pension Dotation, FOR, to BV silent or ruined. As a result, the taxes and the tax burden can be considerably less.
If you can decide for yourself in which year you realize your profit, you can save a lot of tax. To begin with, postponing taxes yields interest gains. The tax benefit can profit if it is not made up of course. But the self-employed deduction is also higher as your profit decreases and one euro extra profit may mean a few hundred euros less deduction. In 2012 and 2013 the self-employed deduction is a fixed amount of € 7,280 regardless of the amount of the profit.
In addition, there are supplements to which you are not entitled to a certain maximum income and which also increase as your income is lower. Think of the rent, care and childcare allowance, and the child-related budget.
For example, an entrepreneur with an income of € 90,000 in 2011 and in 2012 of € 10,000 in the last year is entitled to certain allowances, but his colleague who has an income of € 50,000 in both years is not. At the DGA you have to deal with the minimum DGA salary of € 43,000 in 2013. In 2012 the income of the DGA was at least € 42,000.
How do you print the profit?
Plan your operating costs. If you want to print your profits this year, for example, make the last months of the year cost for a marketing campaign. Of course you do not have to incur costs just because it is a tax collector.
Provisions and reserves
You can make a provision for expenses that can be expected in the future but are related to the current business operations. There must be a reasonable degree of certainty that the expenditure will occur. Consider the costs of the guarantee granted on delivered products. If you do not make a provision, the expense is charged to the year in which you do this. If you have not formed a provision in a year, you can also catch up on the contributions over the past years.
The cost equalization (permanece accounting) can be formed to prevent future peaks in your expenses, such as for major maintenance.
The reinvestment reserve is intended to set aside the book profit on a sold business asset. You book the reserve again as soon as you purchase another asset. Canceling may take up to three years after the year in which the reserve was created. Then the reserve falls into profit.
Starting entrepreneurs can write off their assets entirely randomly, up to a maximum of € 240,000. In 2009, 2010 and 2011, every entrepreneur can deduct a maximum of 50% of newly purchased assets. The scheme was terminated in 2012.
Means of income for income tax
In addition to these tax schemes, there are other income-related schemes, such as reimbursement of study costs. A limited disadvantage is that with a strongly fluctuating income you suffer more from the fact that you pay relatively higher taxes with a high income.
The ‘averaging arrangement’ limits this disadvantage. According to this regulation, as a result of the progression over three years, you can claim back extra paid tax, on an amount of € 545, – after (threshold). The nice thing is that averaging has no influence on the already obtained self-employed deduction or allowances.
You have countless options to take maximum advantage of a number of tax facilities.
If you want to know more, please contact us.