Income outside of main job - how?

Hi all!
I moved to Amsterdam in January last year from London, I love live here! I have a full time job working in a film studio and it's been a great year.

I have a small dilemma now. I want do a little bit of freelance work on the side of my main full time job (my employer doesn't mind this) but I don't know how to do this with taxation. I am on the payroll with my main job, but I imagine I would need to register as a freelance to receive additional earning. But as far as I can see I need to have several clients in order to do this, and the extra work is only going to come from one client.

I'm currently weighing up how possible this would be, and if it's even worth it. Already getting started in freelancing in Netherlands seems to be quite complicated and I am worried it might also be expensive.

Can anyone advise? I'd be very grateful!

Hi there and welcome to the Forum.

It's really quite simple. You have a BSN number from when you registered with the Gemeente when you first arrived, your current employer will be using that to pay to the Belastingdienst any taxes from your salary, they will also be using up any allowances you may have to offset your taxes.  This means that assuming you are going to go over the 20k euro band, you will pay 41% tax on the extra earnings; if you go over the 68.5k band, you will pay 52% tax on the extra; which pretty much explains why Dutch people don't like working overtime.

As to how you do it, every year you have to make a tax declaration in Holland, you will have to declare all worldwide income and they will send you a bill for the difference you haven't paid.

Hope this helps.

Cynic
Expat Team

Hi Cynic, thanks very much for your helpful advice.

You mention I can simply declare my worldwide income on my tax declaration. Do I not need to register myself as an 'eenmanszaak' or have some kind self-employed status if I wish to invoice my clients directly to my Dutch bank account?

Correct me if I'm wrong, but I think perhaps your post was based on me earning the money in UK, whereas I'm now considering how feasible it would be to move all my business affairs to the Netherlands, and be taxed on it entirely here.

If I do require to be a ZZP or eenmanszaak, do you know if the bureaucracy involved with setting up such an arrangement would be straightforward in the Netherlands? My extra earnings will only be about €4000-5000 on top of my main job.

Hi again,

You are assessed for tax depending on where you live; so all of your income will be assessed for taxes there.  Assuming you have an employment contract (?) with your employer, then that is the basis of how the Belastingdienst will currently view your affairs, any additional income you earn will currently be added to that assessment.

The ZZP aspect basically means you becoming self-employed with nobody else working for you, so would leave the employ of your current job and be personally responsible for all your Dutch tax/administration affairs.  I'm not a business or tax expert, so I suggest your first call should be to the Kamer van Koophandel (KvK); this link will take you to their website and contact information.  You can't be the only person either doing or contemplating doing this; there is also another website that explains the ZZP process in a bit more detail; this link will take you there.

Hope this helps.

Cynic
Expat Team

Ok, thanks very much for your advice. I'm contacting the KvK to ask them further.

What was the answer by the way? This applies to me.

Hi Yorba
I went to see a financial adviser about it a month ago. If I remember correctly he suggested to me that the way was to sign up with the KvK and set up as an eenmanszak. I don't know if he was suggesting that primarily since he wanted my business, hard to tell really. In any case I decided against doing the extra work for other reasons so I stopped investigating it.

However, one colleague of mine did suggest an alternative to me. Apparently it's possible to earn a small amount of money alongside payroll salary a couple of times a year using what's called a Kwitantie. As I said, I stopped investigating it so I can't vouch for how it works, but it is supposedly possible to do this as long as you don't invoice the client but send them a certain kind of 'receipt' (which is what Kwitantie means)
Perhaps this link will be of interest to you:

financieel.infonu.nl/belasting/176944-kwitantie-als-particulier-een-factuur-sturen.html

It's in Dutch but you can google translate it to get the gist. Good luck!

That's a good link Yorba; thanks.

A Kwitantie literally translates as a receipt, so the individual has to issue a receipt for the services supplied, the details on the receipt must include:

What goods and services have been delivered
How many goods or services have been delivered
For what amount has been delivered
To whom the receipt is addressed
The date of delivery of the goods or services
Your own name
Your signature

You can't charge any VAT using this system and you must supply copies of such "receipts" to the belastingdienst with your annual return.

Cynic
Expat Team

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