What private corrections have your bookies applied?
Depending on your personal situation, your Bookie has applied private corrections for VAT. You can find the amount at section 1d on your VAT return.
Below, we explain a number of possibilities:
Cell phone
If you have entered your monthly phone expenses in your administration, then we might apply a private correction of 25% here, unless otherwise agreed.
Why 25%? At The Bookie, we assume that a self-employed person working (semi) full time in their business makes about 75% business calls.
If you have applied a correction yourself, of course we are not going to do a double correction.
Even if you have a separate/extra 'business' subscription, we do not apply a private correction.
Internet
The tax authorities have more or less determined that internet costs are not deductible for self-employed people without their own workspace.
More or less, because it sometimes falls into a gray area. For example, an IT professional or programmer incurs extra costs because he/she needs a fast or dedicated connection.
In some cases, self-employed workers report the Internet subscription from home as a business expense. A large part of this is also used privately and must be corrected. We then correct 50% for private use.
If the internet costs are for your rented workspace, the costs are of course fully deductible.
Public transportation
Sometimes we also correct for public transportation costs. We only do this if this has been agreed with you.
VAT correction (company car)
If you have a company car, you may deduct all VAT and all costs on your business account, but at the end of the year your bookies make a correction for the private use.
Usually this is 1.5% of the catalog value of your car times the part of the year.
Note that exceptions apply here, we will spare you all the tax rules.
VAT correction (private car for VAT)
Do you have a private car that is only business for the VAT (if you have, you are aware that this applies to you)
You were allowed to reclaim the VAT on your car expenses for the entire fiscal year. In the fourth quarter, we make the correction based on your kept closed mileage records. This is calculated pro rata.
Suppose you have driven 20% privately and 80% commercially, then we apply a correction of 20% on reclaimed VAT of the car expenses.