Starting as a self-employed person with a secondary activity: what you need to know

What is a self-employed person with a secondary activity?

A self-employed person with a secondary activity carries out an independent activity while maintaining a salaried job.

To benefit from this status, you must work at least half-time (50%) as an employee. If you are a tenured teacher, the minimum required is 60%. In other words, your salaried activity must remain your main activity in terms of time.

How to start your secondary activity?

The steps are identical to those of a main self-employed activity.

You must:
• apply for a company number
• activate this number as a VAT number if your activity is subject to VAT
• affiliate yourself with a social insurance fund

These formalities may seem complex at first, but they are generally quick to complete when properly prepared.

What are your main obligations?

Carrying out a self-employed activity with a secondary status offers great flexibility, but certain administrative obligations remain unavoidable.

Keeping accounts

From the start of your activity, you must keep accounts that you can present in case of an audit.

Fortunately, a sole proprietorship can generally operate with simplified accounting. This is much lighter than the double-entry accounting required for a company.

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1. Filing VAT returns

   Most self-employed activities are subject to VAT. You must then charge VAT to your clients and you can recover VAT on your professional purchases.

   To monitor these operations, you must file a VAT return each quarter. This return includes all your sales and purchases.

   If your annual turnover remains below €25,000, you can opt for the exemption scheme for small businesses. In that case:
   • you do not charge VAT to your clients
   • you do not recover VAT on your professional purchases
   • you do not have to file VAT returns
   • however, you must submit an annual VAT client listing, unless you have no clients with a Belgian VAT number

   One point should be checked: the €25,000 threshold only concerns turnover subject to VAT. Certain activities, such as real estate rental or some exempt services, are not included in this calculation.

   Paying taxes

   The profit you generate from your secondary activity is added to your salary.

   Tax is calculated on the total of these incomes. The applicable rate therefore depends on your salaried income. This is why income from a secondary activity is often taxed in a higher bracket.

   Your tax return also has a specific feature: in addition to Part I (for employees), you must complete Part II of the personal income tax return, which is dedicated to your self-employed activity.

   Paying social contributions

   Like any self-employed person, you must affiliate with a social insurance fund and pay contributions.

   These contributions amount to approximately 20.5% of your taxable income.

   At the start of your activity, your actual income is not yet known. Contributions are therefore calculated provisionally on a lump-sum income of €1,865.45. This corresponds to a provisional contribution of €98.52 per quarter, including administrative costs.

   Once your actual income is known, the social insurance fund will recalculate the exact amount of your contributions. Depending on the result, you will either have to pay an additional amount or receive a refund.

   Keep one important point in mind: in a secondary activity, you do not build up additional social rights. Your social protection is already covered by your salaried job. The contributions you pay therefore mainly have the nature of a solidarity contribution.

PIA Go! supports starters with a secondary activity

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1. The legislation governing self-employed activities can seem complex when you are starting out. In this regard, PIA Go! combines an easy-to-use digital platform with the support of experienced accountants.

   Your accounting obligations, VAT returns and tax return are properly handled, so you can focus on developing your business.

   Considering starting as a self-employed person with a secondary activity?

   Schedule a non-binding video meeting today.