Entrepreneurship for Musicians Conservatory of Utrecht 30 September 2011 Lecture 2

Business Forms: some options Zelfstandig ondernemer V.O.F.: Vereniging onder Firma Stichting Vereniging B.V.: Naamloos vennootschap Maatschap

Being employed You pay wage tax/income tax social insurances More income security Unemployment benefits Retirement plan CAO

Being self-employed: Eenmanszaak VAT (BTW) registration No claim to unemployment payments No Insurances besides Ziekenfonds You pay less taxes: – Self-employment reduction – Starter-reduction – Investment reduction – Writing off of – Turnover-Costs

S elf-employed Need for bookkeeping (incl. separate BTW reg.) Minimum work hours 1225 per year as self employed for the benefits Minimum amount of customers (at least 3) You have to be independent Your colleagues have to be independent Registration at Chamber of Commerce (obliged) Your VAR says: Winst uit Onderneming (Profit from Undertakings) Fill out the form: “Voorbereiding Gemeenschappelijke Inschrijving Startende Onderneming. Eenmanszaak vof cv en maatschap” Fill out the form: “Voorbereiding Gemeenschappelijke Inschrijving Startende Onderneming. Eenmanszaak vof cv en maatschap”

Free-lance artist Almost the same as self employed, but no self employment reduction, no starter reduction, no investment reduction When you work less than 1225 hrs in your company You can have a BTW number You can have a regular job besides your free lance work “Inkomen overige werkzaamheden”

Opting In: The Paye Way Your employer pays taxes If you’re not regarded self employed No rights on WW No deductions of work-related costs No obligation for bookkeeping “Semi-job” Used in combination with the KAR Means extra work for the customer (if above the KAR amount)

KAR of Kostenvergoedingsbeschikking Small Artists Rule – Is used when you are not self employed (with VAR) – Only for artists ( so not for conductors ) – Max. €163 per performance is regarded as only expenses – End of year you get a statement of pay – Easy for the customer – Still regarded as income (from other sources) – You have to prove your expenses – Above €163 regarded as wage

Kostenvergoedingsbeschikking When you can prove your costs are higher than €163 Ask for a Kostenvergoedingsbeschikking at the belastingdienst You still have to prove your expenses at the end of the year Not applicable when – Self employed – Private settings – Payroll

BTW/VAT Performance: 19% BTW Composing and arranging: free of BTW Teaching: – 21 and younger: free of btw – Older than 21: 19% btw

Administration example: turnover Cost numberdate Ex btwBTW perc BTWincl. BTW numberdate Ex btwBTW percBTWincl. BTW concert € 250,006% € 15,00 € 265,00 c Strings € 15,006% € 0,90 € 15, pianolesson € 20,0019% € 3,80 € 23,80 c travel costs January € 96,006% € 5,76 € 101, pianolesson € 20,000% € - € 20,00 c dinner Amsterdam € 25,006% € 1,50 € 26, Arrangement € 150,000% € - € 150,00 c sheetmusic € 35,0019% € 6,65 € 41, rehearsal € 50,006% € 3,00 € 53,00 c sheetmusic € 14,0019% € 2,66 € 16,66 € - € 490,00 € 21,80 € 511,80 € 185,00 € 17,47 € 202,47

Calculating VAT You buy a piano for euro incl. VAT. VAT percentage is 19%. Ho much is the piano excl. VAT? And how much is the VAT?

Answer: divide by 119, times 100= 8403,36 ex vat

Calculating VAT You buy a piano of excl. VAT, VAT is 19%. How much is the piano incl. VAT

Answer plus 19*(10.000/100)=

Payroll Services Administration Office Will send a bill for you, including BTW, Loonbelasting and social security fees Will send you yearly a loonstrookje: wage declaration Keeps all the administration very simple Does cost some money! Is easy for the customer

WWIK Law Income Security for Artists Max 4 years in a period of 10 years Around 70% of a state-welfare (1114€) You can earn up to 125 % of un- employment payment Extras like money for investments, courses