{"id":4098,"date":"2023-03-01T09:08:00","date_gmt":"2023-03-01T09:08:00","guid":{"rendered":"https:\/\/wwwstaging.keesdeboekhouder.nl\/zelfstandigenaftrek-bij-1225-uur-wat-houdt-dat-precies-in\/"},"modified":"2024-10-09T14:46:45","modified_gmt":"2024-10-09T14:46:45","slug":"private-business-ownership-allowance-at-1225-hours-what-does-this-mean","status":"publish","type":"post","link":"https:\/\/wwwstaging.keesdeboekhouder.nl\/en\/private-business-ownership-allowance-at-1225-hours-what-does-this-mean\/","title":{"rendered":"Private business ownership allowance at 1225 hours? What does this mean?"},"content":{"rendered":"\t\t
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You probably heard about it, the standard of 1225 hours you want to meet as an entrepreneur in the Netherlands. But what hours exactly? And why?<\/strong><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The 1225 hour criterion means you need to spend at least 1225 hours on your business. Because if you do you\u2019re entitled to a notable tax deduction: private business ownership allowance.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n

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Private business ownership allowance
<\/strong>Meeting the hour criterion as an entrepreneur, means you qualify for the Private business ownership allowance. This is a deduction of your taxable profit. In 2023 the deduction amounts to \u20ac3.750. Which means your taxable profit is reduced and because of that, so is your income tax.<\/p>\n

Starters\u2019 deduction
<\/strong>Are you starting your business and meeting the hour criterion? In that case your entrepreneurs\u2019 deduction increases with \u20ac 2.123 to a deduction post of \u20ac5.873. You can make use of the starters\u2019 deduction three times in the first five years of running your business. So if you\u2019re combining your business with a regular employment and you can\u2019t meet the hour criterion, no worries. You can still apply the extra starters deduction in the next year.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n

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1225 hours
<\/strong>So you need to spend at least 1225 hours on your business in order to apply for the private business ownership allowance. These aren\u2019t just the hours of doing your core business, but also all the extra hours of doing your administration, keeping your website and socials up to date, cleaning your office, making sales and so on.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n

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\"Zelfstandigenaftrek<\/p>\n

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The hour criterion is very clear. You\u2019re entitled to the deduction when you spend at least 1225 hours on your business. If you\u2019ve worked 1224 hours, than you\u2019re not. Also if you start your business half way through the year, you\u2019ll still have to meet the 1225 hours. The hour criterion can\u2019t be applied in proportion (because the private business ownership allowance can\u2019t be either).<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n

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Hour administration
<\/strong>You\u2019re not obliged to keep track of your hours according to the tax authorities (Belastingdienst). But it is recommended if you can only just meet the norm. The tax authorities are allowed to ask you to prove the hours you\u2019ve put in when there\u2019s doubt. A detailed hour administration is the best way to account for the time you\u2019ve spent.<\/p>\n

If it\u2019s more than obvious that you\u2019ve spent the hours, than you don\u2019t have to keep an hour administration. In that case you\u2019re able to demonstrate your hours by your invoices (if they are invoiced by the hour).<\/p>\n

Combining the hour criterion and working in employment
<\/strong>Entrepreneurs still working in employment need to meet a second norm. You need to spend more hours on your business than you do working as an employee. So if you work 1400 hours a year as an employee, that means you have to spend at least 1400 hours on your business as well to apply for the entrepreneurs\u2019 deduction. The 1225 hours will not be sufficient in this example.<\/p>\n

When you\u2019re still starting your business this second norm does not apply. In that case you\u2019re entitled to the Private business ownership allowance and starters deduction with 1225 hours.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n

\"Zelfstandigenaftrek<\/p>\n

The hour criterion and being pregnant
<\/strong>When you\u2019re pregnant and temporarily not working in your own business, you can count your average hours as though you\u2019re still working. So you can count your average working hours for the 16 weeks of your maternity leave.<\/p>\n

Entrepreneurs\u2019 deduction and the future
<\/strong>The current government had announced the entrepreneurs\u2019 deduction will be reduced to \u20ac900 in 2027.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

You probably heard about it, the standard of 1225 hours you want to meet as an entrepreneur in the Netherlands. But what hours exactly? And why? The 1225 hour criterion means you need to spend at least 1225 hours on your business. Because if you do you\u2019re entitled to a notable tax deduction: private business…<\/p>\n","protected":false},"author":3,"featured_media":2722,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[41],"tags":[],"class_list":["post-4098","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-keep-up-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/wwwstaging.keesdeboekhouder.nl\/en\/wp-json\/wp\/v2\/posts\/4098","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wwwstaging.keesdeboekhouder.nl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wwwstaging.keesdeboekhouder.nl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wwwstaging.keesdeboekhouder.nl\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/wwwstaging.keesdeboekhouder.nl\/en\/wp-json\/wp\/v2\/comments?post=4098"}],"version-history":[{"count":4,"href":"https:\/\/wwwstaging.keesdeboekhouder.nl\/en\/wp-json\/wp\/v2\/posts\/4098\/revisions"}],"predecessor-version":[{"id":4103,"href":"https:\/\/wwwstaging.keesdeboekhouder.nl\/en\/wp-json\/wp\/v2\/posts\/4098\/revisions\/4103"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wwwstaging.keesdeboekhouder.nl\/en\/wp-json\/wp\/v2\/media\/2722"}],"wp:attachment":[{"href":"https:\/\/wwwstaging.keesdeboekhouder.nl\/en\/wp-json\/wp\/v2\/media?parent=4098"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wwwstaging.keesdeboekhouder.nl\/en\/wp-json\/wp\/v2\/categories?post=4098"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wwwstaging.keesdeboekhouder.nl\/en\/wp-json\/wp\/v2\/tags?post=4098"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}