As a sole proprietor, your income is not treated in the same way as the salary received by a Light entrepreneur or employee. It is your company's income, which is referred to as a private withdrawal when paid to you.
What is a private withdrawal?
From the perspective of the tax authorities and accounting, you and your company are one and the same person. Put simply, this means that you cannot pay yourself a salary. Instead of paying yourself a salary, you withdraw money from your company's account for your personal use – this is called a private withdrawal.
When you invoice through Truster, we transfer money from our customer account to your personal account. This way, you can use the money without it being recorded as an expense in your company's accounts, and it will not affect your company's results. It is worth mentioning thatLight Pro Light , all the money that comes into your account is at your disposal, as Truster has deducted all statutory payments from the payment. This means that you will not encounter a situation where you have to pay part of your withdrawals to the tax authorities, for example in the form of value added tax. We take care of that too!
Payment details always available
Open the Menu in the app and click on Company Events. You can either browse all events or filter the search results by time or category.
If you need (or want) to download more detailed reports in PDF format, go to Company Information in the menu and click Downloadable Reports. Here you can download all reports related to your accounting for the period you want.
How do I prove my income?
You may have already concluded that a sole proprietor's income does not constitute a pay slip. If so, you are correct.
Sole proprietors may also, for one reason or another, receive requests from authorities or financiers to provide proof of their income. Since there is no payslip, reports can be used as official proof of income. The income statement is the most typical document, as it serves as a summary of your company's income and expenses. However, always pay close attention to the documents required in the request, as well as the time period for which the documents are requested.
Entrepreneurs' income is not shown in the income register
The income and expenses of a sole proprietor are reported to the tax authorities once a year on a business tax return. When you useLight Pro Light , Truster the return on your behalf. We will ask for more detailed information in a tax return survey at the end of each year.
Private withdrawals are therefore not registered in the income register. You can track your income during the year using the reports available in the app.