![]() ![]() While we aren’t able to answer questions before the law passes, we encourage businesses to raise with us any issues they want to see addressed in the legislation or administrative guidance. This will give them more time to work out any estimated loss for the 2020/21 income year.īetween now and 27 April, officials will consult with tax advisors to ensure the law and administrative guidance is as clear as possible. Part of the proposed law change would make it possible for them to re-estimate it after the date of the final instalment. Taxpayers do not need to rush to re-estimate their provisional tax before 7 May. Without this change, firms would have to carry forward any loss to a year when they make a profit. It means firms could cash out all or some of their losses in 2019/20 or 2020/21. This change means we could refund some or all the tax already paid for the year they were in profit. In other words, they could carry the loss back one year. This temporary change should be introduced in a bill in the week beginning 27 April.īusinesses expecting to make a loss in either the 2019/20 year or the 2020/21 year would be able to estimate the loss and use it to offset profits in the past year. Over the coming weeks, we will draft legislation to make these proposed tax measures law. Government backs business through COVID-19. You can read the Government’s full announcement and fact sheets on the Beehive website. As, unfortunately, the pandemic is still relevant and the home office continues to be an important option for safe working, it is likely that the allowance will continue to apply for 2022.Today the Government announced a further set of tax proposals to help businesses manage the impacts of COVID-19. ![]() Since many self-employed professionals, as well as employees, had to work from home due to the COVID pandemic, the Home Office allowance applied for 20. This reduced VAT rate was adopted in 2020 and will remain in effect until the end of 2022. In 2022, the reduced 7% tax rate will continue to apply to food served by restaurants and foodservice providers. Relevant for self-employed restaurant owners is the reduction of the VAT percentage. Since the COVID crisis still governs large parts of our (working) lives, some laws for tax relief continue to apply to reduce the tax burden in 2022. VAT reduction for the hospitality industry The application for this option had to be made in time in 2021. Thus, you will be taxed at 15% ‘Körperschaftsteuer’ (corporation tax) and can thereby receive a tax advantage. If, for example, you are self-employed with a craft business and have a ‘Personenhandelsgesellschaft’ in Germany (commercial partnership or partnership company), from 2022 you will have the option of being taxed like a corporation, i.e. Option for ‘Körperschaftsteuer’ (corporation tax) This rule applies to laptops and desktop computers, but also to power supplies and operating software, for example. This means that if you buy a new laptop in 2022, you will be able to claim 100% of the tax on it this year. Until now, the rule was that computer hardware and software had to be amortized within three years.Īs of 2021, only the period of one year applies. ➡️ Not yet self-employed or just starting your business? Here you find all the info you need. This means that 9,984€ (or 19,968€) will always remain tax-free for you.ĭon’t forget that as a self-employed person you have to file an income tax return, even if you don’t exceed the ‘Grundfreibetrag’. Income tax must be paid on every euro earned that exceeds the amount of the current ‘Grundfreibetrag’. The ‘Grundfreibetrag’ adjusts every year to secure the living wage (2020: 9.408€, 2021: 9.744€). So, you will not pay income tax if your total income (from self-employment and employment) is below this tax-free amount. (In comparison, it was at 9.744€ in the previous year.) If you are married and you and your spouse issue joint tax declarations, the ‘Grundfreibetrag’ is double, i.e. The so-called ‘Grundfreibetrag’ will increase to 9.984€ in 2022. The ‘Grundfreibetrag’ (basic tax-free amount) Here, you find the most important changes for you as a self-employed person. Every year there are new changes in the tax law and 2022 is no excemption.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |