DEALing WITH TAXES, ACCOUNTING & ALL THAT
A quick guide for entrepreneurs in Sweden running their own organization +/ company.
You need to keep receipts of everything you spend categorized by project. Make a budget for each project--unexpected costs included. Sort the receipts individually on a sheet of paper with the right category so it’s easy to know how you are spending your money.
Keep track of all the expenses digitally organized on a online sheet.
SKATTEVERKET = TAX AGENCY
Every year you have to submit an [inkomstskatt = income declaration] where you have to explain how much money you made and how you spent it.
In order to have employees/employ yourself you have to register as an employer showing where you as an organization/company are getting money to pay salaries.
If you are registered as an employer you need to submit a paper/online form [arbetsgivardeklaration = PAYE] saying how many employees you have and how much money in taxes you are paying for the total of the employees. If you don’t have employees you must submit 0 or you’ll get a fine. NOTE the employment fee [arbetsgivaravgifter] is not part of the salary. Salary = % sek/hour + income tax [avdragen skatt]. The salary is the number you use in the contract.
Reply to every letter you get, there are always contact details. It’s so easy to get a letter and not understand what it says and pretend it will disappear on its own. It won't, it will just get worse.
Professional help on time is a great investment. It really pays off. Do your receipts and your numbers and let someone else deal with the paperwork and the tax agency. You can’t put a price on peace of mind.
These are the state collectors. They are the last step you get to when you don’t deal with stuff. They have the power to just come in and take money from your account. If your name is on their record you will have trouble getting a contract, a phone contract, etc.
They also have an incredible customer service and they are super helpful when it comes to helping to figure things out.
Try not to get onto their list but if you do, just give them a call and work out whatever you have to to get off.
WE WISH WE KNEW…
1. If you are self-employed then consider doing it as freelancer rather than through an employment contract. The invoice system is much easier, you’ll get the same money in your account and less paperwork. You can use online services such as Cool Company, Firmify, and Frilans Finans who will act as your “employer” for whatever jobs you do. They take care of all the paperwork and take a cut from the invoice amount.
2. Swedish. Most communication you’ll get from Skatteverket will be paper letters. Sometimes not even Swedes get it. Still, contact the tax agency right away asking about the letter. [Förfrågan] means they want some info from you. Try to get that translated and send them what they need.
3. Whatever issue you have with paperwork can be fixed, but do it on time. Keep track of the [Beslut = decision] on whatever issue you have.
4. Keep records of all the communication you have with the tax agency. It will make it easier for someone else to help you.
5. There are more people like us.
6. It gets easier with time.