Allowance for club work/ instructor
January 31, 2011 | 20,00 EUR | answered by Michael Herrmann
Dear Sir or Madam,
I will start working as a health sports instructor at a local club starting from 01.03.2011. I am employed as a freelance worker at this club. My gross hourly wage is 25,- EURO and the weekly working hours are 6. This results in a monthly gross salary of 600,- EUR.
My question is:
What do I need to consider regarding taxation? Do the tax exemptions such as Minijob - 400 EUR and additional earnings from club work (exemption 2100 per annum) apply to me? I do not have any additional employment. I am married with a legal partnership. Tax class 5.
Thank you
Best regards
Saskia Franke
Dear inquirer,
first of all, thank you for your inquiry, which I would like to answer based on the information provided and in the context of your involvement in an initial consultation. The response is made in accordance with the description of the situation. Missing or incorrect information about the actual circumstances can affect the legal outcome.
The characteristic feature of a job as a trainer, instructor, educator is to influence other people through personal contact and to impart knowledge, skills, or abilities to them. This applies to similar activities as well, as long as personal contact and an educational orientation are present.
Compensation for part-time work as a trainer, instructor, educator, etc. is tax and social security-free up to 2,100 EUR from 2007 onwards. This is the so-called trainer exemption (§ 3 No. 26 EStG). Your work as a coach at a sports club is eligible.
The exemption is an annual amount. Therefore, payments up to the specified maximum amounts remain tax-free even if you do not carry out the eligible activity throughout the whole year. If the compensation exceeds 2,100 EUR per year, the excess amount is taxable.
The basis for taxation is not only the income, but the surplus of expenses (operating expenses) over income. This results in the profit to be taxed. However, expenses incurred in connection with the eligible secondary activity are covered up to the maximum amount of 2,100 EUR and are not tax-deductible. This exemption acts as a kind of lump sum deduction for advertising or operating expenses. Costs and expenses incurred up to this limit do not need to be proven.
Only if you can prove expenses exceeding 2,100 EUR per year, the excess amount will be considered for tax reduction - but only from the compensation you receive from the club, not from your other income. In that case, you must provide evidence for all expenses and not just a portion (Federal Fiscal Court ruling of February 15, 1990, BStBl. 1990 II p. 686).
Therefore, you can deduct a tax-free amount of 2,100 EUR per year from your fees. Only deduct expenses if they exceed 2,100 EUR.
You can only have a tax-free mini-job in an employment relationship and not simultaneously with the role of trainer.
I hope this information has provided you with a sufficient overview of the situation within the scope of your involvement and this initial consultation.
Best regards,
Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax advisor
