Tax Benefit During Start Period

[D. Quality]

Hi,

 

I would like to start my own business with unemployment benefit.

 

I would like to know difference between with start period and without start period concerning tax benefit.

 

I have checked some online calculations, but really puzzling to decide which one is best.

 

for example,

I have annual gross amount Euro 48000. 

how much tax difference with start period scheme and without ?

 

Thanks in Advance to all of you. Looking forward soon.

[Norbert Bakker]

Hello D.Q, welcome at Higherlevel! 

 

17 uur geleden, D. Quality zei:

I would like to know difference between with start period and without start period concerning tax benefit.

 

I'm a bit puzzled here. What tax benefit do you (think to) refer to here ? 

 

The UWV startersregeling is no tax benefit but a fixed unemployment income during 26 weeks in which extra income als entrepeneur is not deducted from this unemployment income (and no duty to apply for work!) 

 

The actual tax benefits  or deductibles for (starting) entrepeneurs: the “zelfstandingenaftrek”  and “startersafrek”,  have no effect on  - nor are they effected by - yout choice on participating the UWV startersregeling or not.

[Norbert Bakker]

Hi D.Q,

 

Did you by any chance not mean the difference in tax benefit (as mentioned: there is none) but the difference in the unemployment income itself?

 

It would make a lot more sense as a question, but the answer is a bit more difficult because the equation is not based on your actual income but on the hours you spend as an entrepeneur (and not only the billable hours, but all of them!) 

 

Which makes it even more difficult is that the numbrt of hours you monthly report to UWV if you don't op for the UWV starting period,must match the amount of hours you need for the large tax deductibles of the zelfstandigenaftrek and startersaftrek. It's therefore a bit of a Catch-22: lots of hours mean no more much lesser unemployment income,  and to few hours mean no tax deduction. 

 

Also the hour criterium for these tax deductables  is not calculated  pro rata / date to year end but is a fixed barrier of at least 1225 hours .

 

For entrepeneurs with a flying start (actual clients & turnover from the beginning ) this makes the choice easyier: use the UWV starting period and try to make (and account for!)   enough hours (1225 at least) during the rest of the year for the tax detuctibles.