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Smartbe

Question

I am exploring the smartbe option for doing some freelance work, but I confused by one thing:

The reason someone would sign up with smartbe is that if they do not earn enough as freelancer to cover various goverment payments, then it works. Apparently smartbe will take a cut, and take out the tax, and you get the rest. But how is it that via smartbe there is no requirement for the quarterly payments to the state? Or to flip it around, if that doesnt need to be paid via smart due to a small income, why does it need to be paid as an independent on a small income?

I am trying to understand how smartbe does away with this requirement, which I understand it does.

Anyone?

Tia.

J

You are treated as an employee => all tax, etc. is paid. You do not have the freelance status with Smartbe, so you can afford to do odd jobs and get paid for them without taking the leap.

Jun 8, 2015 11:47
S

But employees get their quarterly/monthly/whateverly various taxes paid by the employer. Where does smartbe get that surpplus from? I suppose also there must be a cap, the, how much one cal earn/bill through smartbe?

I have contacted them trying to get answers to these, but they havent been very helpful yet, referring me back FAQ sheets etc.

Jun 8, 2015 12:16
J

You work for €100. Smart bill that to the customer with VAT on. They pay tax and social security, and you get paid something like €70 from Smart.

Jun 8, 2015 14:31
Innovator

smart is only for artists and similar who are covered by some special regulations.
IF you cant use Smart, you can use Tentoo, which works a bit like a temp agency.

Jun 9, 2015 09:47
S

I've not come acrross Tentoo - will look into that too; thanks both for your input.

Jun 9, 2015 10:34
Innovator

(With the regime of smartbe you pay tax and social security with the same rate as a freelance, but you have unemployment benefits etc. like an employee, I guess you don't do the quarterly payments because you are paying according to what you earn immediately)

Jun 9, 2015 10:35
S

Thanks for that. It makes a little sense.
What I dont understand is if it's okay to freelance and not pay quarterly payments, as with smartbe, then why impose it on non-smartbe freelancers? It probably keeps a lot of people out who would otherwise freelance small jobs, and the govt would still earn taxes from them.

Jun 9, 2015 12:16
Innovator

The 1/4ly payments arte advance payments for social security.
I think Smartbes pay as they earn, like an employee.

Anyway, you can be 1/2 time freelance, with less payments, and also the tax money you keep should partly offset to high pre-payments.

Jun 9, 2015 13:16
S

I had no idea you could declare yourself 1/2 time freelance! Especially as freelance hours are variable and often not predictable. Interesting, must learn more.

Jun 9, 2015 15:08
Innovator

There are some limitations, see:
http://business.belgium.be/en/managing_your_business/setting_up_your_bus...

You can also try to be dormant in quarters when you don't have a lot of income (Date invoices in next quarter)

Jun 9, 2015 15:49