5 tips when starting an extra business activity

Company description

When you registered your company in the Chamber of Commerce, you provided a company description. It indicates what your primary business activities are. Check if your business description is still correct now that you have new business activities.

If your description no longer matches what you’re doing, adjust it. Mention the most important activities first. Based on your changes, the Chamber of Commerce determines the most appropriate SBI codes (es) for your (new) activities. Do you have different business activities? Then decide what your main activity is to ensure that you are registered under the correct codes and branches.

The government, industry associations, pension funds, banks and insurance companies use your company’s SBI code. If you change the business activities, it can have consequences for, for example, permits from the municipality or your bank account. Check the website of these organizations for the steps you need to follow if you change business activities.

You can check the SBI code (s) for your registration by requesting withdrawal information online. If you have a sole proprietorship, you can check and adjust your SBI code (s) via My sole proprietorship.

Cost-adjusting business data

Changing your company information in the Chamber of Commerce’s Trade Register costs nothing.

2. Customize your accounts

If you are creating a new company for your additional business activities, you will need to keep new records.
If you take on the old and new activities from one company, you only have to keep accounts. Make sure that for each activity it is clear what hours, revenue, costs, VAT and operating profit are. You do this by taking into account the different business activities when creating your general ledger accounts. You then have insight into how you stand financially per. business activity.

Do you invoice from your accounting package? Create a separate invoice template for each business activity with its own company name, logo and contact information.

Request an additional corporate bank account

To prevent errors from customers and reduce the risk of fraud, Dutch banks use the IBAN name check. With online banking, it is automatically checked whether the international bank account number (IBAN) is the same as the (company) name that the bank knows. If not, your customers will not be able to pay. Banks usually use the first company name for your bank account.

Do you send invoices with different company names? Then open a company account for each company name. This prevents confusion among your customers and problems with the IBAN name check. How much an extra business account costs differs from bank to bank.

4. Look at your tax situation and deductions

If your new activities belong to the business you already had, you must submit one VAT and tax return for all activities. You can use the VAT number and login information you already have for this.

Please note: your new activities may be subject to a different VAT rate. For example, 9% instead of 21%. You can check this in this overview.

If you are an income tax entrepreneur, you may be entitled to deductible items for start-up entrepreneurs due to your new business activity. You can think of the starter deduction or self-deduction. You must then meet these conditions:

  • You are an entrepreneur for tax purposes. Entrepreneurs with private limited companies are not entitled to self-employment or beginner deductions.
  • You meet the hourly criterion of 1,225 hours per year.

Additional conditions apply to the starter grant:

  • You meet the conditions for self-deduction.
  • You were not yet an entrepreneur for tax purposes in one (or more) of the last five calendar years.
  • You have used a maximum self-deduction for (one of) your companies twice within the last five years.

Did you reach the state pension age on 1 January? Then the self-employed and beginner deduction is halved.

5. Customize your general terms and conditions and insurance policies

Think about the risks you run with your new activities. How can you reduce it? You may need to adjust your terms and conditions or need new terms and conditions.
Do you want to deliver soon not only from a store, but also via a webshop? Then you need other general terms and conditions. You can submit the new or changed conditions to the Chamber of Commerce or the court.

Let the insurance company for your professional liability insurance know that you have new business activities. The insurance company can tell you if you need to adjust your insurance policies. If you do not do this, the insurance may not pay out if there is a problem.

Leave a Comment