Would you like to give up or conceal money from additional income?

Many Dutch people earn extra money in addition to their regular job. Installing a kitchen in the evenings, tiling a bathroom or earning advertising income with a website. All additional income must be reported to the Tax Authorities. The employer provides you with a monthly net income. They already take care of the deductions that you owe on the gross salary. If there is a change in the amount of income, the employer will ensure the correct payment. By having deductible items (for example mortgage interest), you may pay too much, which you can receive back via the annual tax return or with a provisional refund. You must report income that you receive in another way to the tax authorities yourself. This income appears to be heavily taxed because the tax credits have already been settled with your employer. This may make it seem attractive not to give up extra income, but the consequences can be serious.

Earn money on the internet

Nowadays anyone can generate extra income on the internet. For example, you can create a site about a hobby and place advertisements on it. If visitors click on these advertisements, you will receive income. The largest in this area is Google with Google Adsense. Some other advertisers only pay out when the visitor clicks through to the advertiser and actually purchases something. For example, you can also earn extra income by writing articles or maintaining a blog.

How should I declare the additional income?

Every year you must submit your tax return for the previous year no later than April 1. You must also include the additional income here. You must do this under the heading: income from other activities. You may deduct the costs you had to incur to earn the income from the earnings.

How much tax do I have to pay on additional income?

This mainly depends on your total income in the tax year. In the highest tax bracket, the tax is 52 percent on the gross salary. You must add the additional income to your gross annual salary to determine how much tax you have to pay. Deductions are deducted again.

Does my extra income also affect my allowances?

Yes, the extra income may mean that you are not entitled to benefits. If you have earned more in a certain year than expected, you may receive a decision from the Tax Authorities with the request to repay the allowances in full or in part.

What happens if you don’t declare your income?

You are punishable if you conceal your income. You are committing an economic offense at that moment. With a lot of side income, the chance of being caught is small, but certainly present. Someone who earns extra money privately in the evenings has little chance of being caught for this. It is not prohibited to earn extra income, as long as you properly report it to the tax authorities. They can only check this once you have declared the income for the tax year.

Additional income in combination with a benefit

People who receive social assistance benefits and also have income from additional jobs are obliged to report the additional income to the benefits agency. In these types of cases, the chance of being caught is also greater, because close attention is paid to benefit fraud.