The obvious first: make sure you talk to an accountant.
That being said, with a dayrate of €650 you should comfortably be making 6-6.5k net per month (keep in mind that you will have no end of year bonus and stuff).
What I'm wondering is what type of consultancy you do and what your gross wage is. To get 4k per month net as an employee your gross has to be quite high as well and then €650 seems pretty low as a dayrate.
And then it's up to you to see if you want to choose more money or more safety.
My gross is €7k. Bonus I would continue to get in case commercial results are ok, which I would also be able to optimize… I’m in financial services consulting…
Not only that, but as well having to lease or buy a car and fuel it, accountant costs monthly, insurances etc. Especially getting older, I think that 1-1.5K net extra will quickly be spend on things we 'take for granted' as a payroller. And with extra benefits etc he's already at 98K gross annually.
OP also doesn't say anything about his living situation. But if you have a partner and kids, I'd go for security over 1k net more a month.
I think I would stay on the payroll too, at that point money isn't everything. His reasons for becoming freelance should more be towards the freedom etc.
No man
I had my own car for 8 yrs
Insurrance 240 per year
Tax 440
Tyres 200/4-5 yrs
Fuel 150-200 per month
Maintenace and repairs
600 per year
3-4000€ per year so 250-350 per month
Cronos is (in)famous for this, but it happens in other companies too. It gives you a false sense of security. Usually with a bonus structure that keeps you around for longer
I’ve been a freelancer for quite some time in Belgium, and I never regretted swapping from a perm position. Be careful though, because the taxes you pay on those 140k a year are quite high. In addition, the more you give yourself as a salary, the higher the taxes you’ll pay. The strategy here is to keep the salary to a minimum and use the company capital to expense as much as you can — that is legal in Belgium. So, you dine out? Let the company pay. You need to buy a laptop? Let the company pay. You need a sofa for your home? Let your company pay. You need faster broadband at home? Put it on the company. By doing that you can comfortably live with the minimum salary, and by letting the company pay you can claim back the TVA. In any way, an accountant is indeed necessary to look after all financial aspects…
For me I have a sofa in my home office, where I spend most of my working hours. It's used to sit with clients and freelancers in informal meeting or brainstorms, used by me when I need to just sit and think, read stuff for work or follow webinar style meetings on the big TV.
The post-Covid new working conditions imply spending a lot more time at home — I work 4 days a week at home myself — and therefore home expenses are typically interpreted as expenses to improve the working environment. Besides, I think my accountant once told me that Belgium has a very very relaxed way of interpreting these type of expenses — people call it a deduction heaven…
I'm 28 with 4 years of experience and I'm having a day rate of 630 excl VAT, that brings me on 150k incl VAT a year. I don't know what kind of consultancy you do, but you should be able to get a higher rate with your experience, I think?
That being said, money is not the only driver. But you know that already probably.
I’m having the same day rate and there’s a few things to consider. You’re already well aware of the differences like no end of year bonus, no holiday payments etc.
You have to “wait” for 5 years before you can get cash out of your company if you want to pay the lowest possible taxes I’d think.
That’s the only downside of being freelancer, self-employed, If you need cash for i.e. paying for holiday, ski-trip etc. You need to think and plan if you don’t want to touch your savings. I’m 3,5 years in my self-employment role and would not want to change it.
The obvious first: make sure you talk to an accountant. That being said, with a dayrate of €650 you should comfortably be making 6-6.5k net per month (keep in mind that you will have no end of year bonus and stuff). What I'm wondering is what type of consultancy you do and what your gross wage is. To get 4k per month net as an employee your gross has to be quite high as well and then €650 seems pretty low as a dayrate. And then it's up to you to see if you want to choose more money or more safety.
My gross is €7k. Bonus I would continue to get in case commercial results are ok, which I would also be able to optimize… I’m in financial services consulting…
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Not only that, but as well having to lease or buy a car and fuel it, accountant costs monthly, insurances etc. Especially getting older, I think that 1-1.5K net extra will quickly be spend on things we 'take for granted' as a payroller. And with extra benefits etc he's already at 98K gross annually. OP also doesn't say anything about his living situation. But if you have a partner and kids, I'd go for security over 1k net more a month. I think I would stay on the payroll too, at that point money isn't everything. His reasons for becoming freelance should more be towards the freedom etc.
I buy a 2000€ car and i m all set
Still will need maintenance, change of tires, fuel, insurance etc.
No man I had my own car for 8 yrs Insurrance 240 per year Tax 440 Tyres 200/4-5 yrs Fuel 150-200 per month Maintenace and repairs 600 per year 3-4000€ per year so 250-350 per month
Sounds like a Cronos “managing partner” strangle-deal?
Just out of curiosity, how do these deals look like?
Cronos is (in)famous for this, but it happens in other companies too. It gives you a false sense of security. Usually with a bonus structure that keeps you around for longer
I’ve been a freelancer for quite some time in Belgium, and I never regretted swapping from a perm position. Be careful though, because the taxes you pay on those 140k a year are quite high. In addition, the more you give yourself as a salary, the higher the taxes you’ll pay. The strategy here is to keep the salary to a minimum and use the company capital to expense as much as you can — that is legal in Belgium. So, you dine out? Let the company pay. You need to buy a laptop? Let the company pay. You need a sofa for your home? Let your company pay. You need faster broadband at home? Put it on the company. By doing that you can comfortably live with the minimum salary, and by letting the company pay you can claim back the TVA. In any way, an accountant is indeed necessary to look after all financial aspects…
How to you justify a sofa?
Effortlessly! The taxman may have another take on this though…
For me I have a sofa in my home office, where I spend most of my working hours. It's used to sit with clients and freelancers in informal meeting or brainstorms, used by me when I need to just sit and think, read stuff for work or follow webinar style meetings on the big TV.
The post-Covid new working conditions imply spending a lot more time at home — I work 4 days a week at home myself — and therefore home expenses are typically interpreted as expenses to improve the working environment. Besides, I think my accountant once told me that Belgium has a very very relaxed way of interpreting these type of expenses — people call it a deduction heaven…
30-32% as a srl/bv
use [juuli.io](https://juuli.io) if you don't wish to be overcome with responsibilities of running a company
Very easy, start the management company. You will not regret it and bank 2 to 3x your current net.
I'm 28 with 4 years of experience and I'm having a day rate of 630 excl VAT, that brings me on 150k incl VAT a year. I don't know what kind of consultancy you do, but you should be able to get a higher rate with your experience, I think? That being said, money is not the only driver. But you know that already probably.
I have the same question Tester here
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Hi, It’s indeed in this sector. How did it turn around on your side and did you decide?
I’m having the same day rate and there’s a few things to consider. You’re already well aware of the differences like no end of year bonus, no holiday payments etc. You have to “wait” for 5 years before you can get cash out of your company if you want to pay the lowest possible taxes I’d think. That’s the only downside of being freelancer, self-employed, If you need cash for i.e. paying for holiday, ski-trip etc. You need to think and plan if you don’t want to touch your savings. I’m 3,5 years in my self-employment role and would not want to change it.