tax as a freelancer
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By 5.1 min readPublished On: 14. September 2022Last Updated: 15. September 2022

How to pay tax as a freelancer

If you have CVR number as a freelancer and even sends invoices, it is your own task to report your income to the Tax Office. But how exactly do you do it? How and when do you have to pay income tax?

Like newly started freelancer Doubts can quickly arise about the tax. Here we guide you through the tax jungle, so you can get off to a good start and get an overview of your tax affairs as a freelancer.

Do you have to pay tax as a freelancer?

Whether or not you have to pay tax as a freelancer depends, among other things, on of the turnover. If you as independent freelancer turnover of more than DKK 50,000 during 12 months, you must most likely report and pay both tax and VAT. 

As an independent freelancer, it is usually your own responsibility to ensure correctness payment of own salary and corresponding report to Tax.

If you work as freelance employee and get tax deducted from your salary, of course you just have to keep track of your deduction. If, on the other hand, you receive fees without tax deducted, it is important that you remember to put money aside for tax.

Payment to Tax as an independent freelancer

If you are an independent freelancer, invoice your work and have your own CVR number, it is important that you register your income with treasure.

As an independent freelancer, you pay tax on the basis of your advance statement. In the advance statement, you enter the amount you expect to earn after any deductions have been deducted. It is therefore an approx. calculation of what you think you will earn in the future and thus have to pay tax on.

The tax is paid in 10 instalments, so-called B tax instalments, with June and December excluded. When you have to pay the tax installments, you can choose to transfer the tax yourself manually or to create an automatic transfer of the amount you have to pay in tax each month.

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Get control of the Tax with Factofly

When you use Factofly to get paid, you become a project employee with us. This means that we handle all the boring stuff - including reporting your tax. Spend your time where it's the most fun, and let us handle the rest.

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Annual statement and vote

When it is time to report the annual accounts, and you have submitted the annual statement to Tax, you will find out whether you should get money back or whether you will have to pay extra in tax. 

Therefore, it is a good idea to continuously adjust your advance statement as your income changes, or as a rule of thumb to set the amount slightly higher than what you expect to earn, if you want to be sure of having money back in taxes.

What is the difference between A and B tax?

You are guaranteed to have heard of both A and B tax or A income and B income, but there is no reason for confusion. A tax simply means that it is tax that you pay on a wage income, i.e. an A income.

As a freelancer, you usually pay B tax, unless you work as a freelance employee. B tax is the tax you pay on the profits from your business.

As a basic rule, you can say that if you receive or write payslips, you must pay A-tax, but if you send invoices, you must pay B-tax.

How do you pay B tax as a freelancer?

When you have got a handle on the advance statement and corrected it after logging into TastSelv on the Tax website, it is time to start paying the installments. 

As I said, there are 10 installments for each financial year of 12 months, during which you do not have to pay tax in the months of June and December. If you log on to the Tax website, you can find an overview of all the installments with a corresponding giro card for each of the installments.

Here you can see the payment deadline and the amount to be paid. You decide for yourself whether you want to use a giro card to pay each instalment, or whether you want to set it up for automatic payment via a fixed transfer or payment service.

create free user

Get control of the Tax with Factofly

When you use Factofly to get paid, you become a project employee with us. This means that we handle all the boring stuff - including reporting your tax. Spend your time where it's the most fun, and let us handle the rest.

create free user

Tax deductions as a freelancer

As a freelancer, you, like all other self-employed people, have the opportunity to deduct certain amounts before you pay tax on your profit. 

Tax deductions are therefore part of your turnover on which you do not have to pay tax because you have had expenses or purchases in connection with the business or work.

It can, for example, be expenses for an accounting program, a new computer, work programs or anything else that is necessary in connection with the work. These expenses are stated as deduction and is therefore money on which you do not have to pay tax.

It is always a good idea to ask an accountant for advice if you are in doubt as to whether a purchase or an expense can be declared as a deduction. Not all of the company's expenses are deductible.

Important dates when you pay tax as a freelancer

When you pay B tax as a freelancer, there are a number of things and dates that are important to keep track of. As the most comprehensive, the most important thing is that you have complete control of your advance statement, annual statement and the payment of tax. 

In addition, there are some important dates to remember:

  • The advance statement is usually available in November
  • The annual statement (for the previous financial year) comes in March
  • B tax is paid at the latest on the 20th of each month (except in June and December)
create free user

Get control of the Tax with Factofly

When you use Factofly to get paid, you become a project employee with us. This means that we handle all the boring stuff - including reporting your tax. Spend your time where it's the most fun, and let us handle the rest.

create free user
tax as a freelancer
By Published On: 14. September 2022Last Updated: 15. September 2022

How to pay tax as a freelancer

If you have CVR number as a freelancer and even sends invoices, it is your own task to report your income to the Tax Office. But how exactly do you do it? How and when do you have to pay income tax?

Like newly started freelancer Doubts can quickly arise about the tax. Here we guide you through the tax jungle, so you can get off to a good start and get an overview of your tax affairs as a freelancer.

Do you have to pay tax as a freelancer?

Whether or not you have to pay tax as a freelancer depends, among other things, on of the turnover. If you as independent freelancer turnover of more than DKK 50,000 during 12 months, you must most likely report and pay both tax and VAT. 

As an independent freelancer, it is usually your own responsibility to ensure correctness payment of own salary and corresponding report to Tax.

If you work as freelance employee and get tax deducted from your salary, of course you just have to keep track of your deduction. If, on the other hand, you receive fees without tax deducted, it is important that you remember to put money aside for tax.

Payment to Tax as an independent freelancer

If you are an independent freelancer, invoice your work and have your own CVR number, it is important that you register your income with treasure.

As an independent freelancer, you pay tax on the basis of your advance statement. In the advance statement, you enter the amount you expect to earn after any deductions have been deducted. It is therefore an approx. calculation of what you think you will earn in the future and thus have to pay tax on.

The tax is paid in 10 instalments, so-called B tax instalments, with June and December excluded. When you have to pay the tax installments, you can choose to transfer the tax yourself manually or to create an automatic transfer of the amount you have to pay in tax each month.

create free user

Get control of the Tax with Factofly

When you use Factofly to get paid, you become a project employee with us. This means that we handle all the boring stuff - including reporting your tax. Spend your time where it's the most fun, and let us handle the rest.

create free user

Annual statement and vote

When it is time to report the annual accounts, and you have submitted the annual statement to Tax, you will find out whether you should get money back or whether you will have to pay extra in tax. 

Therefore, it is a good idea to continuously adjust your advance statement as your income changes, or as a rule of thumb to set the amount slightly higher than what you expect to earn, if you want to be sure of having money back in taxes.

What is the difference between A and B tax?

You are guaranteed to have heard of both A and B tax or A income and B income, but there is no reason for confusion. A tax simply means that it is tax that you pay on a wage income, i.e. an A income.

As a freelancer, you usually pay B tax, unless you work as a freelance employee. B tax is the tax you pay on the profits from your business.

As a basic rule, you can say that if you receive or write payslips, you must pay A-tax, but if you send invoices, you must pay B-tax.

How do you pay B tax as a freelancer?

When you have got a handle on the advance statement and corrected it after logging into TastSelv on the Tax website, it is time to start paying the installments. 

As I said, there are 10 installments for each financial year of 12 months, during which you do not have to pay tax in the months of June and December. If you log on to the Tax website, you can find an overview of all the installments with a corresponding giro card for each of the installments.

Here you can see the payment deadline and the amount to be paid. You decide for yourself whether you want to use a giro card to pay each instalment, or whether you want to set it up for automatic payment via a fixed transfer or payment service.

create free user

Get control of the Tax with Factofly

When you use Factofly to get paid, you become a project employee with us. This means that we handle all the boring stuff - including reporting your tax. Spend your time where it's the most fun, and let us handle the rest.

create free user

Tax deductions as a freelancer

As a freelancer, you, like all other self-employed people, have the opportunity to deduct certain amounts before you pay tax on your profit. 

Tax deductions are therefore part of your turnover on which you do not have to pay tax because you have had expenses or purchases in connection with the business or work.

It can, for example, be expenses for an accounting program, a new computer, work programs or anything else that is necessary in connection with the work. These expenses are stated as deduction and is therefore money on which you do not have to pay tax.

It is always a good idea to ask an accountant for advice if you are in doubt as to whether a purchase or an expense can be declared as a deduction. Not all of the company's expenses are deductible.

Important dates when you pay tax as a freelancer

When you pay B tax as a freelancer, there are a number of things and dates that are important to keep track of. As the most comprehensive, the most important thing is that you have complete control of your advance statement, annual statement and the payment of tax. 

In addition, there are some important dates to remember:

  • The advance statement is usually available in November
  • The annual statement (for the previous financial year) comes in March
  • B tax is paid at the latest on the 20th of each month (except in June and December)
create free user

Get control of the Tax with Factofly

When you use Factofly to get paid, you become a project employee with us. This means that we handle all the boring stuff - including reporting your tax. Spend your time where it's the most fun, and let us handle the rest.

create free user