In the case of an ancillary business, deduct costs for tax purposes

If you earn a little extra in an ancillary business, you have to submit your income as part of your income tax return along with your actual income as an employee Tax office communicate. So that your work is profitable and the bottom line is that something comes out, you have to make sure that your income and expenses are structured in such a way that they are tax-optimized.

Save taxes on ancillary business too

• First, check whether you are doing an activity for which you can claim the trainer's allowance of up to € 2100. This includes activities that you also carry out in the interests of the common good (activities in an association, choir director, teacher at adult education centers, supervisor in a self-help group).
• You can use an allowance of up to € 500 for voluntary work.
• Otherwise it applies to all incurred with your ancillary business
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  costs to consider. You should basically collect all receipts when you are spending money in your ancillary business.

Register all expenses as income-related expenses

• If you need work equipment, you can reduce the acquisition costs up to a net purchase price of up to € 410 claim in full as business expenses (office furniture, work clothes, laptop, desk lamp).


Deduct account management fees - this is how it works as income-related expenses

Nowadays, wage and salary payments are almost exclusively cashless ...

• Assets whose acquisition exceeds this amount must be written off over their useful life. For a computer, for example, the tax office assumes a useful life of three years, so you can claim a third of the costs every year.
• If you need a study in your apartment for your ancillary business, all associated expenses, including the pro-rata rent, are included in the income-related expenses. However, it is important that you actually only use the study as a study.
• You can also create your own receipts if other evidence is not available (parking fees, telephone charges in a telephone booth). Otherwise, make sure that you have cost receipts for everything that you do not submit with your tax return, but must present to the tax office on request. In doing so, the tax office usually does not provide any evidence if your income-related expenses do not exceed a total of € 2500.
• Need one creditIn order to organize your secondary business, you can deduct the debt interest as business expenses.
• If you have your secondary business as a Business you can benefit from the small business regulation, provided that your total turnover is in did not exceed € 17,500 last year and is not expected to exceed € 50,000 this year will. You do not need to invoice any sales tax, but you are also not allowed to charge any input tax from what you have paid bills assert. You save yourself an enormous amount of bureaucratic effort.
• After a certain amount of effort, you should afford a tax advisor who will optimize your tax return.