Due to the coronavirus support measures allocated, entrepreneurs must pay extra attention this year when filing their income tax returns. This is causing unrest among self-employed entrepreneurs.
This is evident from a survey of 737 Dutch freelancers conducted by accounting app Tellow. A full 20 percent of the surveyed self-employed individuals fear the accuracy of their 2020 income tax returns, and a quarter even fear having to pay a supplementary tax assessment for the past year due to the coronavirus pandemic.
A key reason for the fear of filing a tax return among self-employed individuals appears to be a lack of knowledge. For example, over half of respondents indicate they lack sufficient financial knowledge to file their business income tax return themselves this year. Strikingly, 33 percent say they will file their tax return themselves this year, without any support from an accountant or tax consultant. The younger the self-employed person, the less likely they are to seek help with their bookkeeping. Of the youngest group, self-employed entrepreneurs under 30, 38 percent decide to file their tax return themselves, compared to 28 percent of the oldest group.
The survey shows that over 50 percent of freelancers consider administrative tasks by far the most frustrating aspect of being self-employed. Female freelancers, in particular, are more reluctant to deal with the financial burden: a full 55 percent of female respondents indicated they value administrative tasks the least, compared to only 40 percent of men.
