Checklist: self-employment after retirement

If you earn money from the jobs you do, check whether you meet the KVK’s 3 entrepreneurial criteria. If so, you must register with KVK. Do you occasionally carry out work for family or friends and receive only a reimbursement for your expenses? Then you do not need to register.

Registration in the Business Register

Alternatives to self-employment

Would you like to do a job for your former employer? Or carry out projects for a regular client? In that case, you probably do not meet KVK’s criteria for self-employment and do not need to register in the Business Register. Ask your tax adviser or the Tax Administration whether you can make use of other options in your situation. For example:

• working through a temporary employment agency or payrolling
• the opt-in scheme (in Dutch) of the Tax Administration
• Scheme for Payments to Third Parties (uitbetaalde bedragen aan derden, in Dutch)

Read more about the options for earning extra income after your retirement on the KVK website.

Will you be carrying out the same work as you did for your former employer? Check whether there is a non-compete clause (concurrentiebeding) in the employment agreement you had with them. If this is the case, you are not permitted to do the same work as you did for your former employer for a period as stated in the agreement.

Your employment agreement may also contain a non-solicitation clause (relatiebeding). This means you are not permitted to do business with your former employer’s clients or suppliers. Read more about a non-solicitation clause and non-compete clause (in Dutch) on Rechtspraak.nl.

When starting a business, you choose a legal structure, such as a sole proprietorship (eenmanszaak) or a private limited company (BV). This is how your business is set out in the KVK Business Register. Have you built up private assets? For example, savings, investments, or the equity in your home. Take this into account when choosing a legal structure.

With some legal structures, you are personally liable for your business’s bills and debts. This is the case with a sole proprietorship. A sole proprietorship is a legal structure without legal personality. If you do not have enough money in your business to pay invoices or settle debts, you will have to use your own funds. This includes your savings and your home.

Video: legal structure with or without legal personality

Do you have a partner? If so, your partner may be required to contribute to your debts. This depends on how and when your relationship is arranged. Read more about your partner’s liability in your situation.

Use the decision tool ‘Which legal structure suits your company’ to make a choice for your situation.

Once you have registered with KVK, the Tax Administration will determine whether you are an entrepreneur for income tax purposes. Use the Tax Administration’s Entrepreneur Check (Ondernemerscheck, in Dutch) to find out whether the Tax Administration considers you an entrepreneur for income tax purposes. Do you only take on assignments occasionally? In that case, you are usually not an entrepreneur for income tax purposes, but a recipient of income from other activities (resultaatgenieter). You can then state your income on your income tax return under ‘income from other activities’ (inkomsten uit overig werk, in Dutch).

You can still make use of tax benefits after retirement age:

After your registration, the Netherlands Chamber of Commerce KVK automatically sends a notification to the Netherlands Tax Administration. The Tax Administration will inform you whether you are an entrepreneur for VAT purposes. And whether you need to submit a VAT return, and how often. You will also receive your VAT numbers.

Do you not need to register with KVK? You may still need to submit a VAT return. This is because the Tax Administration and KVK both have their own criteria for determining whether you are an entrepreneur. Do you meet the Tax Administration’s criteria (in Dutch)? If so, register with the Tax Administration and complete the ‘Declaration for Start-up Entrepreneurs’ (Opgaaf startende ondernemers, in Dutch).

Submit a nil return if you have no turnover (for the time being)

You must always submit a VAT return, even if you temporarily have no turnover. This is known as a nil return or a 0 return.

Will you complete your VAT return yourself and do you want advice? Get in touch with the Netherlands Tax Administration via the Head start website and ask for a live chat or video appointment.

Read more about the VAT return on kvk.nl.

With disability insurance (AOV), you insure yourself against loss of income. Once you have reached retirement age, you will usually no longer be able to take out AOV. Or you will have to pay a higher premium to your insurer. Check whether you want to cover loss of income due to illness or accident. Also see what other options are available for taking out insurance.

Income from your business does not affect your state pension (AOW) or the pension you have accrued with previous employers. However, your income may affect the allowances you receive. Check on the website of the Tax Administration what the potential impact is on your rent allowance (huurtoeslag, in Dutch) or healthcare benefit (zorgtoeslag, in Dutch).