Income as a freelancer
October 4, 2010 | 35,00 EUR | answered by Michael Herrmann
Dear Sir or Madam,
I have been self-employed for 5.5 years. I have an annual turnover of approximately 125,000 euros. However, as I only make a quarterly advance payment (VAT) of 735 euros, I have a very high annual tax bill (15,000 euros). I am self-employed without any company or similar and have 6 employees. My question now is, is it possible for me to pay myself a salary to prevent tax arrears, or would it be more advisable to write to the tax office and deposit 1,000 euros every month? The solution with the salary would be preferable to me. I would be very grateful for a prompt response, as this high tax bill always burdens me.
Thank you.
Dear inquirer,
First of all, thank you for your inquiry, which I would be happy to answer based on the information provided and in the context of your initial consultation. The response will be in accordance with the facts presented. Missing or incorrect information regarding the actual circumstances can affect the legal outcome.
As a self-employed individual, you do not have the option to hire yourself as an employee. Self-employment excludes non-self-employment as an employee.
In any case, it is sufficient to inform the tax office that the previous advance payments are insufficient to cover the annual tax liability. Therefore, you should submit an informal request to the tax office to adjust the income tax advance payments and request that they adjust the payments to your expected profit (specify the amount). The advance payment dates are always on the 10th of March, June, September, and December. This is legally set and cannot be changed.
Under no circumstances should you transfer money to the tax office without being asked, as only the actual assessed tax can be credited. Other transfers will only lead to confusion and would ultimately be refunded.
I hope that this information has provided you with a sufficient overview of the situation in the context of your inquiry and remain
Yours sincerely,
Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax consultant
