Tax deductions as an independent freelancer
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By 7.5 min readLast Updated: 3. May 2024

What can you deduct from tax as an independent freelancer?

As self employed is it possible to deduct some expenses in connection with the company or the work from tax.

It can, for example, be expenses for an editing program, driving, a computer or anything else necessary to carry out the work.

But are all expenses in connection with your work deductible? And what about continuing education, hotel stays or fitness?

Read along here to get a complete handle on which expenses you can advantageously post as deduction in your account.

What are tax credits?

Just to be safe, let's first of all establish exactly what tax deductions are.

A tax deduction is an amount of the profit in your business on which you do not have to pay tax.

You therefore register the amount in your accounts as a deduction, which means that this amount will be deducted from the income on which you normally have to pay tax.

Do you have e.g. an expense of DKK 500, which is deductible, it will be DKK 500 less of what you earn, on which you have to pay tax.

The more deductions you have, the less your taxable amount will be.

Examples of tax deduction can e.g. be driving deductions, personal deductions or just general tax deductions, which can be expenses in connection with your business.

If you do not have full control of what can be deducted in tax, you risk paying more tax than necessary.

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An easier freelance life with Factofly

Be a freelancer without hassle and get paid without your own CVR number with Factofly. We help more than 8,000 others with an everyday life without administration.

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What deductions do you have as a self-employed person?

If you as independent freelancer have a business, there are several things and expenses for which you can get a tax deduction.

This also applies, even if you e.g. make use of a freelance agency to the administration.

As a rule of thumb, you can get a deduction for most of the expenses that are necessary for you to do your job.

But there are nevertheless exceptions, variations and different descriptions of when an expense is necessary and thus eligible for deduction.

Historically, expenses for a business account have e.g. not been deductible, as this is mainly a requirement from the banks and is not required by law.

However, it has been assessed by the Ministry of Taxation that it has one "sufficient current operational justification" that the fees are deductible. (Source: ft. dk)

Below you can see some examples of some of the most widespread deductions:

  • Telephone and internet costs
  • Auditor's expenses
  • insurances
  • Marketing e.g. advertising costs
  • Software or work programs
  • Rent for e.g. office premises
  • Costs for purchasing goods (which are resold)
  • Equipment, machinery or other inventory
  • Driving – if you use your private car (driving deduction)
  • Electricity and heating (for office premises)
  • Expenses for administration, e.g. accounting program

There are therefore several different expenses that you as independent freelancer can deduct from tax.

Perhaps you already knew about most of the above deductions, but many also investigate whether they can get a deduction for the following:

Tax deduction for computer as a self-employed person

As a self-employed person, you can deduct expenses for a computer or other IT equipment from tax, as long as the computer or equipment is used in your work.

If you use the computer both privately and for work, however, you can only get a deduction for the part of the computer's price that corresponds to your use of the computer in work-related contexts.

If you use the computer half of the time for work and the other half privately, you will therefore be able to get a deduction for the 50% from the price of the computer.

Tax deduction for chiropractor, acupuncture, massage and physiotherapy as self-employed

Historically, health treatments such as chiropractor, acupuncture, massage, physiotherapy and the like have been tax-free, but with the latest guidelines from Tax, you as a self-employed person do not have the opportunity to deduct the expense. (Source: Skat.dk)

Here it may also be worth taking a closer look at yours insurances as self-employed.

create free user

An easier freelance life with Factofly

Be a freelancer without hassle and get paid without your own CVR number with Factofly. We help more than 8,000 others with an everyday life without administration.

create free user

Tax deduction for screen glasses as a self-employed person

Expenses for ordinary glasses are considered a private expense, and are therefore not normally deductible, unless these are special glasses that are required to be able to carry out the work and are not used privately.

The same applies to screen glasses, where these are not normally deductible.

If you can document that the goggles are used exclusively for work, and there is justification for acquiring them in connection with work, they may in some cases be eligible for deduction.

Tax deduction for fitness as a self-employed person

Expenditures for gyms and exercise are generally not tax deductible.

If you, as a company, choose to set up an exercise room with machines at the workplace, which is made available to the employees, the cost of this is, however, fully deductible.

Tax deduction for accommodation as a self-employed person

Travel expenses such as hotel accommodation, board, lodging and miscellaneous can generally be deducted from tax if, due to the distance between your place of residence and your place of work, you do not have the opportunity to spend the night at home.

This means that hotel accommodation, meals on the journey and various expenses for the journey can normally be deducted from tax if the distance between residence and place of work warrants this.

You can read more about travel expenses at taxes.

Tax deduction for food as a self-employed person

Generally speaking, as the owner of a sole proprietorship, you cannot get a deduction for expenses for food.

You must eat regardless, so food consumed during work is not deductible.

As a sole proprietorship, you also cannot get a deduction for:

  • Food or meals for employees
  • Food in connection with social events such as Christmas lunches etc.
  • Free tea, coffee or fruit arrangement for employees
  • General assemblies

If, on the other hand, you have eaten with one of your business associates, e.g. a customer, business partner or employee, you can get a deduction for 25% of the expenditure for e.g. restaurant visits or e.g. food and drink for anniversaries.

create free user

An easier freelance life with Factofly

Be a freelancer without hassle and get paid without your own CVR number with Factofly. We help more than 8,000 others with an everyday life without administration.

create free user

What can you not deduct from tax as a self-employed person?

As a general rule, you cannot get a full deduction for expenses for things that you also use for private use.

 

If you use an item both privately and for business, you can, however, deduct the business part from tax.

Most expenses which are necessary in connection with the work and which are considered to be an operating expense in your business are fully tax deductible if you only use the item or service in connection with the work.

Another thing that you cannot get a deduction for in connection with the work is e.g. Christmas lunches or other social events.

Expenses for private use cannot of course be deducted from tax either. You can see more about deductions for company expenses at Tax website.

Get deductions for losses in the company as an independent freelancer

As a self-employed person or freelancer with a sole proprietorship, you can also get a deduction for any losses in your business.

This means that if your company should, contrary to expectations, make a loss, you can deduct this from your own personal income tax.

If you e.g. is combinator - i.e. both employee and self-employed freelancer at the same time - you will be able to deduct the loss from your self-employed business from the tax that you e.g. must pay in your salaried job.

create free user

An easier freelance life with Factofly

Be a freelancer without hassle and get paid without your own CVR number with Factofly. We help more than 8,000 others with an everyday life without administration.

create free user

How do you get a deduction for expenses as a self-employed person?

In order to get a tax deduction for expenses, these must first be registered in your accounts as an expense.

You do this by creating a 'purchase' in your accounting program, and then uploading the corresponding invoice.

In this way, the deductible expenses that you register will automatically be included in your annual accounts and deducted from tax when you report the annual result.

Do you use a freelance agency, such as us here Factofly, you have the option of getting a deduction for direct expenses that are billed to the customer. Simply upload the invoice for your purchase as one deduction, then we'll handle the rest. Then you won't miss out on all the tax deductions in connection with your freelance work.

Tax deductions as an independent freelancer
By 7.5 min readLast Updated: 3. May 2024

What can you deduct from tax as an independent freelancer?

As self employed is it possible to deduct some expenses in connection with the company or the work from tax.

It can, for example, be expenses for an editing program, driving, a computer or anything else necessary to carry out the work.

But are all expenses in connection with your work deductible? And what about continuing education, hotel stays or fitness?

Read along here to get a complete handle on which expenses you can advantageously post as deduction in your account.

What are tax credits?

Just to be safe, let's first of all establish exactly what tax deductions are.

A tax deduction is an amount of the profit in your business on which you do not have to pay tax.

You therefore register the amount in your accounts as a deduction, which means that this amount will be deducted from the income on which you normally have to pay tax.

Do you have e.g. an expense of DKK 500, which is deductible, it will be DKK 500 less of what you earn, on which you have to pay tax.

The more deductions you have, the less your taxable amount will be.

Examples of tax deduction can e.g. be driving deductions, personal deductions or just general tax deductions, which can be expenses in connection with your business.

If you do not have full control of what can be deducted in tax, you risk paying more tax than necessary.

create free user

An easier freelance life with Factofly

Be a freelancer without hassle and get paid without your own CVR number with Factofly. We help more than 8,000 others with an everyday life without administration.

create free user

What deductions do you have as a self-employed person?

If you as independent freelancer have a business, there are several things and expenses for which you can get a tax deduction.

This also applies, even if you e.g. make use of a freelance agency to the administration.

As a rule of thumb, you can get a deduction for most of the expenses that are necessary for you to do your job.

But there are nevertheless exceptions, variations and different descriptions of when an expense is necessary and thus eligible for deduction.

Historically, expenses for a business account have e.g. not been deductible, as this is mainly a requirement from the banks and is not required by law.

However, it has been assessed by the Ministry of Taxation that it has one "sufficient current operational justification" that the fees are deductible. (Source: ft. dk)

Below you can see some examples of some of the most widespread deductions:

  • Telephone and internet costs
  • Auditor's expenses
  • insurances
  • Marketing e.g. advertising costs
  • Software or work programs
  • Rent for e.g. office premises
  • Costs for purchasing goods (which are resold)
  • Equipment, machinery or other inventory
  • Driving – if you use your private car (driving deduction)
  • Electricity and heating (for office premises)
  • Expenses for administration, e.g. accounting program

There are therefore several different expenses that you as independent freelancer can deduct from tax.

Perhaps you already knew about most of the above deductions, but many also investigate whether they can get a deduction for the following:

Tax deduction for computer as a self-employed person

As a self-employed person, you can deduct expenses for a computer or other IT equipment from tax, as long as the computer or equipment is used in your work.

If you use the computer both privately and for work, however, you can only get a deduction for the part of the computer's price that corresponds to your use of the computer in work-related contexts.

If you use the computer half of the time for work and the other half privately, you will therefore be able to get a deduction for the 50% from the price of the computer.

Tax deduction for chiropractor, acupuncture, massage and physiotherapy as self-employed

Historically, health treatments such as chiropractor, acupuncture, massage, physiotherapy and the like have been tax-free, but with the latest guidelines from Tax, you as a self-employed person do not have the opportunity to deduct the expense. (Source: Skat.dk)

Here it may also be worth taking a closer look at yours insurances as self-employed.

create free user

An easier freelance life with Factofly

Be a freelancer without hassle and get paid without your own CVR number with Factofly. We help more than 8,000 others with an everyday life without administration.

create free user

Tax deduction for screen glasses as a self-employed person

Expenses for ordinary glasses are considered a private expense, and are therefore not normally deductible, unless these are special glasses that are required to be able to carry out the work and are not used privately.

The same applies to screen glasses, where these are not normally deductible.

If you can document that the goggles are used exclusively for work, and there is justification for acquiring them in connection with work, they may in some cases be eligible for deduction.

Tax deduction for fitness as a self-employed person

Expenditures for gyms and exercise are generally not tax deductible.

If you, as a company, choose to set up an exercise room with machines at the workplace, which is made available to the employees, the cost of this is, however, fully deductible.

Tax deduction for accommodation as a self-employed person

Travel expenses such as hotel accommodation, board, lodging and miscellaneous can generally be deducted from tax if, due to the distance between your place of residence and your place of work, you do not have the opportunity to spend the night at home.

This means that hotel accommodation, meals on the journey and various expenses for the journey can normally be deducted from tax if the distance between residence and place of work warrants this.

You can read more about travel expenses at taxes.

Tax deduction for food as a self-employed person

Generally speaking, as the owner of a sole proprietorship, you cannot get a deduction for expenses for food.

You must eat regardless, so food consumed during work is not deductible.

As a sole proprietorship, you also cannot get a deduction for:

  • Food or meals for employees
  • Food in connection with social events such as Christmas lunches etc.
  • Free tea, coffee or fruit arrangement for employees
  • General assemblies

If, on the other hand, you have eaten with one of your business associates, e.g. a customer, business partner or employee, you can get a deduction for 25% of the expenditure for e.g. restaurant visits or e.g. food and drink for anniversaries.

create free user

An easier freelance life with Factofly

Be a freelancer without hassle and get paid without your own CVR number with Factofly. We help more than 8,000 others with an everyday life without administration.

create free user

What can you not deduct from tax as a self-employed person?

As a general rule, you cannot get a full deduction for expenses for things that you also use for private use.

 

If you use an item both privately and for business, you can, however, deduct the business part from tax.

Most expenses which are necessary in connection with the work and which are considered to be an operating expense in your business are fully tax deductible if you only use the item or service in connection with the work.

Another thing that you cannot get a deduction for in connection with the work is e.g. Christmas lunches or other social events.

Expenses for private use cannot of course be deducted from tax either. You can see more about deductions for company expenses at Tax website.

Get deductions for losses in the company as an independent freelancer

As a self-employed person or freelancer with a sole proprietorship, you can also get a deduction for any losses in your business.

This means that if your company should, contrary to expectations, make a loss, you can deduct this from your own personal income tax.

If you e.g. is combinator - i.e. both employee and self-employed freelancer at the same time - you will be able to deduct the loss from your self-employed business from the tax that you e.g. must pay in your salaried job.

create free user

An easier freelance life with Factofly

Be a freelancer without hassle and get paid without your own CVR number with Factofly. We help more than 8,000 others with an everyday life without administration.

create free user

How do you get a deduction for expenses as a self-employed person?

In order to get a tax deduction for expenses, these must first be registered in your accounts as an expense.

You do this by creating a 'purchase' in your accounting program, and then uploading the corresponding invoice.

In this way, the deductible expenses that you register will automatically be included in your annual accounts and deducted from tax when you report the annual result.

Do you use a freelance agency, such as us here Factofly, you have the option of getting a deduction for direct expenses that are billed to the customer. Simply upload the invoice for your purchase as one deduction, then we'll handle the rest. Then you won't miss out on all the tax deductions in connection with your freelance work.