Year-end checklist for freelancers: what to sort out before 31 December

Investments and costs: timing within the year

In November, set this year's investments against the scale of the small-scale investment deduction. If you invest between € 2,901 and € 71,683 in total in 2026 in business assets of at least € 450 each, you get 28% extra deduction; above that the deduction tapers off. For the KIA the moment you commit counts, so the order or the signed quotation. As long as the asset is not yet in use, the deduction is capped at the amount you have already paid. A laptop ordered on 30 December but only delivered and paid for in January therefore yields no KIA this year.

Costs covering at most twelve months ahead, such as an annual software subscription or a course in spring, are deductible in the year you pay them. Unsure whether something is an investment or an expense? Look at the € 450 threshold and the useful life. Above all, only bring forward outlays you were planning anyway: buying something unnecessary to save tax always costs you money on balance. How to split larger amounts across the year-end is explained in accruals and prepayments.

Stock and work still to be invoiced

If you sell products, count your stock on 31 December or as close to that date as possible, and correct for what came in or went out in between. You value at purchase price, or lower if items are damaged, obsolete or hard to sell. That count directly determines your cost of sales and therefore your profit. How to substantiate it properly is explained in valuing stock at year-end.

If you work by the hour or per project, list everything you delivered this year but have not yet invoiced. That revenue belongs to this year, even if the invoice only goes out in January. The same applies to the finished part of ongoing projects. Preferably send such invoices in December; that is not only correct for tax, it also helps your cash flow in January.

Receivables and the last VAT return of the year

Go through your open invoices in December. Send reminders for everything past due, and assess per client whether you will still see the money. If a receivable is doubtful, for instance because the client is in a payment moratorium or no longer responds, you may value it lower and take the loss this year. If an invoice truly cannot be collected, you also get back the VAT you paid on it; the conditions and timing are in unpaid invoice and reclaiming VAT.

If you drive a company car that you also use privately, the last VAT return of the year must include the correction for private use: as a rule 2.7% of the list price, or 1.5% from the fifth year after the year of first use and for cars bought without VAT. You declare that correction in box 1d, see VAT and private use of the car. In the same round, think about next year: if you want to start using the small business scheme from 1 January, your registration must reach the tax authorities at least four weeks before that date, so in early December. If you want to stop, also arrange the deregistration well before the new quarter and do not leave it until late December.

Hours, receipts and a reconciled bank account

In mid December, add up your hours so far and work out what will be added until 31 December. If you reach 1,225 hours you are entitled to the self-employed deduction of € 1,200 and, as a starter, to the starter deduction as well. If you are just below, you cannot fix that afterwards with a generous estimate; records that do not match your calendar and invoices do not hold up in an audit. What convincing records look like is covered in keeping hour records.

Then reconcile your bank account: every debit and credit needs an invoice, a receipt or an explanation. Request missing invoices now, because suppliers still respond in December; by April they have forgotten. Book private withdrawals and deposits separately, count your cash if you handle cash, and check that all subscription and platform invoices are in. The more complete your records on 31 December, the fewer questions your bookkeeper will ask later.

Looking ahead to January

With the December interim figure you also know whether your provisional assessment is still right. If your profit turns out higher than the tax authorities assume, adjust it. That prevents a large bill in one go and limits tax interest. If your profit turns out lower, an adjustment stops you from paying too much in advance.

If your rates go up on 1 January, let your clients know well in advance, preferably a month ahead, and update your quotations and invoices in time. Finally, put the deadline for your fourth quarter VAT return in your calendar: it must be filed and paid by 31 January at the latest. If you made your records complete in December, that takes about an hour.

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