Amsterdam, 19 January 2022 – Self-employed people are experiencing problems with their tax returns. They find taxation a difficult subject and often spend hours on it. The Danish Tax Agency recognizes this challenge and has therefore developed the module Automatically completed profit statement (AWA). Tellow is one of the first to implement this in its accounting software. The integration of the tax return module into Tellow’s product represents an important step in the digitization of accounting and archiving. From March 1, self-employed people can submit the profit part of the tax return from the accounting program.
Problems for freelancers
The tax return is a big challenge for the majority of the more than 1 million self-employed people in the Netherlands. Many of them do not – or submit a report too late – and many unnecessary mistakes are made. Many entrepreneurs know too little about taxes to see what their liabilities are. Or they don’t see exactly how they can comply with laws and regulations. No less than 60% of all errors are the result of careless administration. In particular, the profit statement, one of the components of the income tax process, is experienced as complex. Self-employed people feel inadequately supported, often spend hours on it and afterwards are never quite sure if they did the right thing.
New declaration module ib
In order to reduce the administrative burden for self-employed traders, the Tax Administration has released a declaration module that can integrate accounting software from companies such as Tellow into their software. With this AWA module, the profit part of their tax return is taken directly from the accounting package and included in the Tax Authorities’ online tax return. Fewer manual calculations and steps will be required because the correct data will be filled in automatically. The tax return will therefore take much less time, and the chance of errors is considerably less. And it prevents cumbersome interruptions, such as query letters and appeals procedures, later in the declaration process.
The integration of the module with Tellow is a good example for Skat to execute its strategy to become an agile and future-proof organization. “The tax authorities want to make use of the digital possibilities so that entrepreneurs can easily submit their tax returns via their own administration. That is why Tax is taking the step towards a continuous administrative chain that matches the entrepreneurs’ everyday life as closely as possible. We do this together with entrepreneurs, tax providers, software developers, banks and other public parties.” says Jeroen van Hulten, program manager for digitization at Tax and Customs SME: “We are happy that Tellow is now going to integrate and use the module.”
Easier and more fun
Tellow also sees opportunities in the integrated declaration module. The company has been working on simplifying the declaration process for a long time and offers all sorts of useful features for the self-employed. In this way, the VAT declaration can be submitted automatically every quarter. Thomas Vles, Tellow’s managing director, is pleased that Skat meets the needs of the self-employed. He sees the collaboration as an important step in the digitization of accounts and declarations. “With Tellow, freelancers can quickly and easily manage their administration via laptop or phone. The declaration module fits seamlessly into this. With this, we not only make taxes easier, but also more fun.”
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Tellow is an automated accounting software, founded in 2016 as a venture from Rabobank, specially designed for micro-enterprises and the self-employed. The fintech company is a one-stop shop for all financial matters for self-employed entrepreneurs, so they can focus on doing business without worry.
Using the app, users can, among other things, create and send offers and invoices and keep track of their finances. Users can also easily scan their receipts and invoices. Every quarter, people can submit their VAT return to the tax authorities with a single click via the app.
Tellow Complete also calculates and submits personal and business income tax through Tellow. For added security, bookkeepers check all their declarations for the price of a digital app. Thanks to the clever combination of software and real bookkeepers, we can offer people security at an affordable price.
Earlier this year, parent company Ageras Group raised $73 million in growth capital. For the Dutch market, the market Tellow focuses on, the funding will be used to help Tellow grow into a market leader.
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