Ask a tax advisor on the topic of Income tax return

Side income as an employee

June 11, 2013 | 25,00 EUR | answered by Oliver Burchardt

Dear tax experts,

As an employee, I have a mandatory, non-self-employed main job. I am currently considering supplementing my income by doing additional work at events in the canteen occasionally rented to private individuals by the employer, as a supervisor/caretaker.

The employer would bill the tenant for the use of the space, but does not want to have anything to do with the supervisory staff. It is a marginally paid job, but a mini-job solution unfortunately would not be possible for the above-mentioned reason.

For my work, the tenant would pay me directly (on average around 100 € - 150 € per month) and I would have to consider this income in my income tax return at the end of the year. However, if the additional income is added to our family income, I assume the effort may not be worthwhile due to the tax burden.

My question:
Would it be possible in this case to reduce the tax burden (e.g. by registering as a business/freelancer or applying a separate, lower tax rate only for this marginal secondary job, disconnected from our family income)?

THANK YOU VERY MUCH

Oliver Burchardt

Dear inquirer,

Thank you for your inquiry, which I am happy to answer as part of an initial consultation.

Unfortunately, in your case, such a separation is not possible. From a tax perspective, you earn income from business operations, which you must declare separately in your income tax return.

For taxation purposes, all your income will be added together and the tax rate will be determined based on that total.

One could consider the idea of outsourcing the activity to a GmbH or UG that you establish. However, this would result in a significant additional effort that would likely outweigh the tax savings.

The only solution would indeed be a mini job, but unfortunately it is not an option.

I am sorry that I cannot provide you with a more favorable answer.

Best regards,

Oliver Burchardt