1. Keep track of your changes in income:
The first step to avoiding a tax break is to be aware of changes in your finances. Did you get a raise, change jobs or earn extra money? These changes can affect your taxable income and require an update of your tax return.
2. Update your deductions:
Deductionssuch as interest expenses on your mortgage, transportation and service deductions can reduce your taxable income. Make sure to update your deductions in your tax return so you don't pay more tax than you need to.
It only takes 15 minutes to try TaxHelper and you'll get an average of DKK 2,704 extra back in tax
At the same time, you only pay if you get a tax saving.
3. Check your prepaid taxes:
If you have prepaid taxes, make sure they are correct. If they're too low, you could end up with a tax penalty. If they are too high, you may receive a larger tax refund later. Adjust the prepayment taxes according to your changed circumstances.
4. Use TaxHelper+:
As many as 3.5 million Danes regularly pay too much tax
Many Danes believe that SKAT keeps track of your taxes throughout the year, so you don't have to do much on your advance tax return. But the reality is that every year, Danes pay DKK 17 billion too much in taxes during the year and only get their money back in March of the following year.
That's why we built TaxHelper+, which acts as your personal tax advisor, updating your taxes every month. By updating your tax return regularly, you get an average of DKK 4,006 extra in your pocket this year instead of waiting until March!
How does TaxHelper+ work?
5. Avoid tax arrears by adjusting your annuity pension:
If you have an annuity pension, you can adjust your payment rate to avoid tax arrears. A higher contribution rate reduces your taxable income, while a lower contribution rate can give you a larger tax credit.
When you update your tax return regularly, you ensure that the information you provide to the Danish Tax Agency is as accurate as possible. This contributes to a more accurate tax calculation, which in turn reduces the risk of errors and unpleasant surprises at the end of the year.
Updating your tax information on a monthly basis can seem like a daunting task. With TaxHelper+, we keep track of your taxes for you throughout the year, so you can relax. You can read much more here.
In TaxHelper, we help you find the deductions you're entitled to. You answer a few simple questions that take just 15 minutes to complete.
Then we report the deductions, and you get an extra DKK 2,704 back in tax. At the same time, you only pay if you get a tax saving.