Invalidity of entrepreneur’s allowance?

If you are an entrepreneur having income tax liability whose turnover for 2017 and 2018 each totalled less than 5,000 euros (exclusive of value-added tax), you may be about to receive a letter from the Tax Office in invalidation of the claim you included in your tax return in connection with entrepreneur’s allowance.

Certain criteria have to be met in order to qualify for entrepreneur’s allowance. They are as follows:

• your status must be that of an entrepreneur having income tax liability,
• you must fulfil the hours test,
• you must have been under state retirement age at the start of the calendar year in question.

The Tax and Customs Administration is in the process of alerting entrepreneurs whose net turnover for 2017 and 2018 each totalled less than 5,000 euros to the possibility of their not having satisfied all of the allowance criteria. The determining factors are the hours test and/or whether the entrepreneur in question in addition to running his or her business holds down a job elsewhere.

Hours test

It is only by recording the hours you have worked for your enterprise (which you can do using your office calendar) that you will be able to substantiate your having fulfilled the hours test and avoid retroactive adjustment having to be made to your claim(s) for entrepreneur’s allowance.

Dutch version: Onterechte ondernemersaftrek?