{"id":19064,"date":"2025-07-03T11:42:02","date_gmt":"2025-07-03T09:42:02","guid":{"rendered":"https:\/\/www.accountable.eu\/?p=19064"},"modified":"2025-07-03T11:42:05","modified_gmt":"2025-07-03T09:42:05","slug":"putting-money-aside-taxes","status":"publish","type":"post","link":"https:\/\/www.accountable.eu\/en-be\/blog\/putting-money-aside-taxes\/","title":{"rendered":"5 tips for setting aside enough money for your taxes"},"content":{"rendered":"\n

Oops! Your tax assessment notice has arrived, and the amount you owe is higher than you expected. It’s frustrating, but not exactly uncommon when you\u2019re self-employed. Of course, you already know how important it is to set aside enough money for your taxes. Here, we share 5 practical tips for doing so effectively.<\/strong><\/p>\n\n\n\n

Tip #1: Remember that the VAT you charge is not for you<\/h2>\n\n\n\n

As a freelancer in Belgium, you charge your clients VAT. Generally speaking, the VAT rate is 21%.<\/a> A \u20ac5,000 project therefore means an invoice of \u20ac6,050, VAT included, for your client. But be careful, the extra \u20ac1,050 that lands in your account isn’t really yours.<\/p>\n\n\n\n

In fact, you have to pay this VAT to the FPS Finance<\/strong> at the beginning of each quarter. So keep a close eye on the amount of VAT you receive and either don’t spend it, or keep it in a separate bank account.<\/strong> That way, there\u2019s no stress when it\u2019s time to pay it back to the state.<\/p>\n\n\n \n

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With Accountable, you can always<\/strong> see how much you should set aside for VAT, taxes and social security contributions.<\/p>\n <\/div>\n <\/div>\n \n\n\n\n

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Tip #2: Understand your taxable net income<\/h2>\n\n\n\n

Your taxes and social security contributions are calculated based on your taxable net income<\/strong>. This is your revenue minus your deductible expenses<\/strong>.<\/p>\n\n\n\n

Let’s say you have a revenue of \u20ac75,000 this year. Over the course of the year, you\u2019ve incurred some expenses, like the purchase of a new smartphone, car charging costs, your internet subscription, a few business gifts, and of course, your social security contributions. In total, your expenses amount to \u20ac20,000. Your taxable income, therefore, will be \u20ac55,000<\/strong>.<\/p>\n\n\n\n

This \u20ac55,000 is the amount on which you pay taxes, whether through personal income tax<\/a> (if you\u2019re a sole trader) or corporate tax (if you have a company).<\/p>\n\n\n\n

You pay quarterly contributions and make advance payments for your taxes based on your estimated taxable net income. Having a good understanding of your financial situation allows you to make a more accurate estimate, which in turn makes it easier to calculate how much to set aside.<\/p>\n\n\n \n

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The more <\/strong>deductible expenses<\/strong><\/a>\u00a0you have, the lower your taxable net income and, therefore, your overall tax burden.\u00a0<\/strong>Visit deductibles.be for expense ideas<\/strong><\/a>.<\/strong><\/p>\n <\/div>\n <\/div>\n \n\n\n\n

Tip #3: Calculate your social security contributions accurately<\/h2>\n\n\n\n

By correctly estimating your taxable net income, you can also better assess the amount you\u2019ll have to pay in social security contributions<\/a>. These represent around 20.5% of your taxable net income<\/strong>.<\/p>\n\n\n\n

You pay these social security contributions quarterly to your social insurance fund<\/a> (Acerta, Partena Professional, Xerius, etc.). If you know your quarterly contribution<\/strong>, you can divide this amount by 4 and put a little money aside each month.<\/p>\n\n\n\n

Example: <\/strong>In 2025, you pay \u20ac2,700 per quarter in social security contributions. You can therefore set aside \u20ac675 every month so you\u2019re ready to pay your social security contributions at the end of each quarter.<\/p>\n\n\n \n

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During your first year of business, it\u2019s not easy to estimate your income. You can therefore opt to pay the minimum social security contribution.<\/strong> Keep in mind, though, that if it turns out later that you earned more, the amount will be recalculated<\/strong>.<\/p>\n <\/div>\n <\/div>\n \n\n\n\n

Learn more about how social security contributions are calculated.<\/a><\/p>\n\n\n\n

Tip #4: Set aside a fixed percentage of your income<\/h2>\n\n\n\n

As a self-employed sole trader, you pay on average between 25 and 45% in tax on your professional income<\/strong>. That\u2019s a pretty large range, we realise.<\/p>\n\n\n\n

To have a better idea, consider which tax bracket<\/strong><\/a> your business\u2019 revenue falls into:<\/p>\n\n\n\n