1. Starting your Own Business Local Knowledge 8 May 2012
Christopher Thubron Steven Degraef
Moore Stephens, Brussels

2. Running your business The financial part Company or individual
Similar approach
You need an accountant

3. Why do you need an Accountant ?
Comply with the laws
Bookkeeping
VAT
Tax return
Social security
Cheaper than DIY ???

4. Choosing an accountant
Interview 2 or 3
Working for you
Difference between accountant and auditor

5. Questions to ask before appointing an accountant 1/3
Status
Member of an Institute in Belgium
Experience in general and internationally
Communication – understanding as well as language
Build a relationship
Insurance
Quality control reviews
Fees – if fixed – how is extra work charged

6. Questions to ask before appointing an accountant 2/3
Staff
Language ability
Communication – languages may be OK but understanding may not be
US and UK « separated by the same language » GB Shaw
Accountant should confirm instructions (Calls Meetings) by
Make sure you understand the replies to your questions
Identify staff working on file – replacement for holidays, etc

7. Questions to ask before appointing an accountant 3/3
The one person firm is finished
Subject too wide
New laws and rules almost weekly
IEC discourage loneliness, encourage mergers

8. Terms – Fees
Fees – rates – fixed quote – how is additional / extra work handled
Engagement letter – what is included – what is extra – must be clear

9. Time Time is money but make sure there is time for you
Don’t waste time
Be efficient – prepare list of questions before meeting / call

10. How will you work together ?
Accountant collects documents or
You take documents to accountant or
Input by accountant at your place or
You do input from your office / home via link to accountant’s programme
Deadlines – missing is expensive

11. What do you have to do ?
Filing organised – accountant must show how to do – no shoeboxes
Attach written explanations to documents where not clear from document
Provide spreadsheet if possible
Be ready on time – agree deadlines

12. Manage your cash VERY IMPORTANT Separate bank accounts Schizophrenic
Clarity

13. Financial reports
Layout
Frequency
Currency

14. Tax returns
Belgian
Elsewhere in the world

15. Controls Tax VAT Social Security Preparation
Rights and duties of tax payer and adviser

16. UK or other foreign companies
Handle with care
Permanent establishment
Economic centre

17. Deductions Two systems exist in Belgium
A lump sum (a variable percentage of income)
Actual charges (unlimited if substantiated)

18. Deductions The lump sum system : Income after social security Lump Sum
Allowance per tranche
Total Allowance ……
28.7 %
10 %
5 %
3 %
0 %
1.575,63
542,00
362,00
1.310,37
0,00
2.117,63
2.479,63
3.790,00
3.790,00 (MAX)

19. Deductions
The actual charges require accounting of all expense invoices
Conditions
Related to professional activity
proven by supporting documents
Payment proven – possibility for forfait
Made to earn or to maintain taxable income

20. Social Security Calculation of professional income: Gross income Less
Social security (amount actually paid !)
Including Pension Libre complémentaire
Income after social security
Actual expenses
Or lump sum allowance
Taxable income before allowances

21. Car Car costs: Petrol Parking Maintenance Taxi
Limited to 75% of the amount

22. Other assets Depreciation on assets PC = 3 years Car = 5 years
Furniture

23. Utilities Heating, utilities (professional part)
Telephone, mobile phone, post

24. Rent
If allowed in rent contract

25. Examples of other actual expenses
Training, seminars
Professional travel office suppliers, IT supplies documentation
Professional insurances
Restaurant : deductible for 69%
Representation costs : deductible for 50%
Professional clothing: can only be worn at the work place
Bank charges
Local taxes

26. Examples of non deductible expenses
Taxes
Fines (other than parking fines)
Non professional clothing : which can also be worn outside of the work place
Non professional expenses

27. Questions?

28. Your contacts Christopher Thubron - Partner Steven Degraef
Tel 02 –
Steven Degraef
Tel 02 –
Moore Stephens FS
Blue Tower
Avenue Louise 326 – Box 30
1050 Brussels