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What is an advance payment statement?

Aske Buemann

CEO & Co-founder

Changes in life happen all the time. It could be a new job opportunity, starting a self-employed business or moving into a new home. Whatever the reason, such changes can affect your taxes. That's why it's important to keep your withholding tax statement up to date so that you don't pay too much or too little tax. But what is an advance statement and how do you use it to record changes in your life?

What is an advance payment statement?

An advance tax assessment is a calculation of how much tax you will have to pay during the year and is a budget prepared by SKAT based on the previous year. It is based on the income you are expected to receive in that year and the deductions you are entitled to. It is important to remember that an advance tax assessment is only a calculation and that the actual amount of tax you will have to pay may differ depending on how your financial situation changes during the year.

Is an advance statement the same as an annual statement?

No, an advance statement is different from an annual statement. An advance statement is a statement of your expected tax payment during the year, while an annual statement is a statement of your actual tax payment for the whole year.

The annual statement is generated by the Tax Administration the following year and shows whether you are due a tax refund or whether you have to pay tax arrears. The annual statement takes into account all the changes that have occurred during the year and shows whether you have paid the correct amount of tax during the year.

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When do I need to make changes to my tax return?

There are a number of situations where you may need to make changes to your tax return. Here are some of the most common ones:

  • You have a new job or have reduced your working hours
  • You have been paid more or less
  • You have bought or sold a property
  • You have received new deductions or lost old deductions
  • You have a new source of income such as unemployment benefit, cash benefits, early retirement pension, etc.

Remember that it is important to keep your tax return up to date if there are changes in your life that may affect your taxes. If you don't, you risk paying too much or too little tax, which can have consequences for your finances. If you pay too little tax, you may have a tax penalty that you will have to pay back later. On the other hand, if you pay too much tax, you miss out on money that would otherwise have been paid to you during the year.

Changing your withholding tax statement can help you make sure you are paying the correct amount of tax. It can also give you a better overview of your finances and help you plan your budget.

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  1. You create your TaxHelper+ membership on our platform - first month is free
  2. We check every month if your income, interest etc. is correct on SKAT (on your withholding tax statement)
  3. You can relax and enjoy the fact that your risk of a tax bill next year is much lower

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How do I make changes to my withholding tax return?

You can change your withholding tax return by logging in to TastSelv on the Tax Agency's website. Here you can view your current withholding tax statement and change it if necessary. Here are the steps to change your withholding tax return:

  1. Log in to TastSelv with your NemID.
  2. Select 'Withholding tax statement'.
  3. Review your information and correct any errors.
  4. Enter the new information you want to change.
  5. Review your tax return again to make sure everything is correct.
  6. Save the changes and exit.

Remember that you can change your tax return as many times as you need to during the year, so you can adjust it as your life changes.

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