Five Frequently Asked Questions

In 2023 the (CBS) calculated that more than a third of self-employed persons in the Netherlands do not have a financial safety net if he or she suffers a loss of income due to incapacity for work or illness. The Basic Insurance for Disability for the Self-Employed (BAZ) bill, made public in June 2024 aims to rectify this situation. From (presumably) 2027, disability insurance (AOV) will become mandatory for self-employed persons. Artlupa answers five frequently asked questions about mandatory AOV.

For whom will AOV be mandatory?

If the BAZ Act is put into force, disability insurance will become mandatory for IB entrepreneurs: these are self-employed persons who profit from their business. If you are self-employed and you do not yet have AOV, you can assume that you will have to insure yourself within a few years, even if you are affiliated with a (schenkkring) or (broodfunds).

Have you already insured yourself against incapacity to work? Then you don't have to take out new insurance. Your current insurer should be able to provide with the relevant information in this regard. Directors/major shareholders and life partners who work in their partner's business are also exempt from the insurance obligation.

What will the mandatory AOV cost?

Do you fall into the above-mentioned category of self-employed people? Then you will pay a maximum of 195 per month for your AOV under the DBA. If you want to know what your AOV will cost, you can assume it will be 6.5 percent of your taxable profit from the business, including the SME profit exemption and entrepreneur's deduction. The AOV amount is tax deductible from your profits.

How do you arrange your AOV?

You will pay the premium for the new AOV to the Tax and Customs Administration. You can arrange this through the UWV. The AOV is already available there as voluntary insurance and government agencies strongly advise you to do so. You can do so via this link by logging in with your DigiD.

How much does the UWV pay out?

Self-employed persons with an AOV from the UWV will receive a benefit for one year after incapacity to work, this will continue until you are entitled to AOW. The maximum for this benefit will be equal to the minimum wage set at that time. If you are only able to work partially due to illness and your income is below the minimum wage, the AOV benefit will supplement up to this amount.

When does the mandatory AOV take effect?

At the time of this letter (October 2024), it looks like the bill for mandatory AOV will go to the House of Representatives in the spring of 2025. After that, it will take a few years before the insurance is available. Lupacompany will of course keep you informed of new developments regarding the mandatory AOV.

Read more

On the Dutch Governments Website  you can find out more about mandatory AOV for self-employed persons. Another draft law that may affect your work as a self-employed person is the VBAR, which lays down new criteria for self-employment. You can read in This article about possible changes that may effect your situation. We have published several articles for and about self-employment. An overview is available Here.

Here you can find what Lupacompany will do to help our clients and to safeguard the health of our employees and clients.

1. The work will continue
2. The office can be reached by telephone
3. Everyone at Lupacompany will work from home
4. We will maintain a small team in the office to receive and proceed mail
5. Consults will be done by telephone and email.
6. No meetings will take place in the office
7. We like to get mail (admin, dossiers) via email.

Date: 15 maart 2020

Team of Lupacompany

Why a plan?

It has been said that when a starting entrepreneur writes a business plan, they have a far greater chance at success. Sometimes a business plan is an obligation, for example when applying for funding or a bank loan or if you want to start an enterprise from the Unemployment Act.

Stop writing! Read this first…

Before you start writing consider first who will read your business plan. When you, yourself are the reader, you write a different plan than for a bank. This is important, because there a many examples of business plans on the internet, with which a fledgling entrepreneur can work with.

All business plans start with a general description of the entrepreneur´s life and continues with an analysis of the strengths and weaknesses of the entrepreneur. The bank can determine from the analysis and the description whether or not you are suitable and experienced. However for you, you yourself, this is useless. The business plan should be about the enterprise and not about you, right? Not education and experience determines success but perseverance, a lot of faith and a bit of luck.

You must also ask yourself what and why you want to tell. It is not important how long the business plan will be, because the business plans you can find on the internet are quite extensive. A consequence of these matters is that an entrepreneur must wade through the plan and the formats can be seen as an box-ticking exercise. The available plans are similar to each other, furthermore, it is a pity that these formats appear to miss the essence of enterprises and entrepreneurship.

In short, available business plans are aimed at the entrepreneur and limiting risks. This leads to the abovementioned box-ticking exercise and as a consequence the passion of the entrepreneur can be extinguished.

Seeing and taking opportunities

 The weird thing of these business plans is that the key question is what you are going to sell, to whom and through what means are not answered. In short, you should start with the opportunities of the enterprise and not a description of the life cycle. Because entrepreneurship is about seeing opportunities and taking them. How do we do this?

The WWHW model

We use the WWHW model before writing the business plan. This principle only applies to the chance you see (What), Why you see this (Why), how you think you will succeed (How) and with who you will do this (Who). This plan is maximally 2 a4 papers long. If this is correct we expand to the planning and budgeting of money and time. Dependent on the goal of the enterprise we add extra necessary information. And if you follow these steps, you will eventually have a business plan.

Advisors help!

In many situations it is advisable to consult someone, mostly for tightening your choice and to see if it is a realistic plan. Because many starting entrepreneurs have difficulty with making an overview of the total costs or they have no idea of the size of the market. This is why we see a lot of misguided or incomplete business plans.

Working on your idea for an enterprise together

Artlupa (part of Lupacompany) has deviced the WWHW (WHAT –WHY- HOW – WHO) model. In this model all aspects of converting an idea to an enterprise are considered. The WWHW model is meant to map who is your target group, what the added value of your idea is and what makes this idea unique (WHAT and WHY) The model ensured in addition that we think about financing of your idea and the marketing (HOW). And last but not least the WWHW model pays attention to WHO, who you are as an entrepreneur, are collaborations with other parties necessary to realise your idea and in what ways can you reach your network.

By writing down the WHAT – WHY – HOW and WHO of your idea, you are already making choices about the content of your idea. Because of this, your idea gets focus and becomes tangible. The more tangible the WHAT – WHY – HOW and WHO, the easier it becomes to profile your enterprise and you can indicate what your idea stands for and what goals we can formulate. 

The six most common forms of cybercrime:

*Malware

Software such as viruses and Trojan Horses that nestle in digital files and systems.

*Hacking

Through means of computer hacking a computer system is entered. Through this websites and computer systems can be exploited and shut down.

*Phishing

Through the spreading of false e-mails personal data is acquired from internet users.

*Identity theft

Exploitation of personal data can arise when this is transferred to strangers through e-mail or websites. This is possible through exploitation of your Digi-D code or stealing a copy of your passport. Many companies pretend to help you acquire Digi-D’s, while in reality this is not true.

*DDos attacks

Attacks with the purpose of shutting down a website or internet service by overloading. This usually concerns websites or services from large commercial companies.

*Spam

Messages are being spread in great numbers with commercial purposes. Through this a trade in e-mail addresses has arisen.

Consequences of cybercrime

Digital crime obviously can have very annoying and negative consequences for enterprises. From stealing money, shutting down the network from a company so that no activities can take place to the damage of reputation. Prevention is better than cure. Therefore, we compiled a list of tips and tricks that can make your digital environment safer.

What can you do? Read our tips here:

1.Knowledge of own ICT-environment

Know what hardware and software is used within the enterprise and what information needs protection.

2.Concern for security in entire enterprise

Make sure the importance of security is known throughout the entire enterprise. The caution you may apply, also needs to apply to employees and colleagues. This is possible through the means of trainings. Trained and informed employees will be more cautious with company –and personal data.

3.Secure digital network

It is essential that the digital network is secured. By installing anti-virus programs and firewalls the computer network will be more secure to malware. Furthermore this security prevents the unauthorized to use this network.

4.Software and hardware up to date

Do not use outdated systems. The most recent updates for software and hardware can ensure that certain malware is kept outside of the computer network.

5.Strong password

Always chose a strong password and vary! Strong passwords are harder to crack and therefore more secure. A strong password has at least 8 characters and is not an existing word, or name of someone from the direct environment or a birth date. A combinations of capitals, small letters and punctuation ensure the security of the password. Pay attention that for different important services you do not use the same password.

Through http://www.veiligondernemenscan.nl/ a scan can be performed to gain an insight in the different criminality risks to your enterprise. Subsequently you will receive independent advice met different security measures that may fit the needs of your own company

From the Spits, Friday 4th of October 2013

www.beschermjeeigenbedrijf.nl

The self-employed professional

As a self-employed professional you are expected to cover for the risks of incapacity of work yourself. Two thirds of the more than 850.000 self-employed professionals The Netherlands currently are not insured against the incapacity to work. This is because of the high cost and the complexity of the arbeidsongeschiktheidsverzekering (invalidity Insurance for Employees, from here on named the AOV). Still, the incapacity to work is an important subject for you as a self-employed professional. That is why Biba Schoenmaker and Andre Jonkers found a way to avoid an expensive insurance: The Broodfonds.

How the fund works

The Broodfonds is a successful income fund where self-employed professionals save an amount of money on an own account of a Broodfonds group. A Broodfonds group consist of twenty to fifty self-employed professionals. Together they form each other’s insurance in case they can no longer work because of sickness. In this it is required that the participant is an entrepreneur . Besides that the enterprise, that makes up your main income may not exist for shorter than one year. The amount that is saved each month can vary between €45 and €90. With this you create a buffer. When someone from your Broodfonds group is sick each participant transfers money from their buffer to the sick participant. Depending on the monthly contribution the sick participant will receive between €1000 and €2000 a month. Two weeks after a participant turns out to be sick this amount is transferred from the fund. when you are sick for longer than two years you cannot rely on the contributions from the fund.

Besides the monthly premiums a single payment of €275 and a monthly contribution of €10 apply.

Trust

The foundation for The Broodfonds is trust. An entrepreneur can only participate in a Broodfonds group when he knows someone from that group. Through this a form of social control is created. On top of that, someone who is sick is often contacted. It is important that a fund consists of no more than fifty participants to ensure the social control.

Fiscal aspects

AOV benefit is taxed in the income tax, faced against that is that paid AOV premiums are deductible from the income tax. The benefits concerning the Broodfonds are fiscally qualified as donations. The paid premium for the benefit of this Broodfonds are defined as savings of the participant. The participants save on their own account and therefore these premiums are qualified as savings and investement consequently the monthly paid premiums in benefit of a Broodfonds are not deductible from the income tax. Income tax only needs to be paid if the total wealth of the taxpayer exceeds €21.139.

The benefits to the sick participant are considered a donation. These donations are not deductible for the donor for the declaration of income tax. The received donation by the sick participant is usually taxed with gift tax. However, an exemption applies if the total donation from a participant to a sick participant does not exceed €2.057 (2013) per year. If this amount is exceeded than gift tax is due over the entire sum. It is important that the group exist of at least twenty participants, so that everyone pays relatively less to the benefits of a sick participant. Through this the participants stay under the threshold and do not need to pay gift tax.

Participating in a Broodfonds group

There are two ways in which you as a self-employed professional, can participate in the Broodfonds. Firstly the option exist to establish your own Broodfonds group, a requirement to this is that the Broodfonds group is created with at least twenty entrepreneurs from your network. The second option is to participate in an existing Broodfonds group. For this you need to be introduced by someone from the group.

Advantages

Cheaper than the AOV

The trigger for establishing The Broodfonds was the expensive premiums of the AOV. Participating in The Broodfonds is a much cheaper alternative. The paid premium with the AOV is a deductible post in box 1 and with insufficient income in box 1 The deductible post can be deducted in the remaining boxes (usually box 3). The net total of the Broodfonds account is accounted into possession in box 3, the savings and investements.

Easy entry and exit

It is possible to exit from a Broodfonds group on two occasions a year. If, during a sickness you received donations you have to participate for two years from the start of your participation. Anyone who exits can take his savings after deduction of gifts and costs: a single payment of €275 and the monthly contribution of €10.

Maximum buffer

Participants build up a maximum buffer of 36 monthly deposits. Through this it is prevented that an unnecessary amount of money is saved.

Tax free donation

The received donation in regard to sickness is at the most taxed with gift tax if the yearly threshold value per participant of €2.057 is exceeded.

Networking

Participants within a Broodfonds group know each other. This benefits the trust and workings of the funds.

Disadvantages

It is easy to lose the safety net

The easy entry and exit can, in our opinion, lead to a collapse of the created safety net. If several participants simultaneously exit the Broodfonds group, the group seizes to exist.

A homogenous group is not an advantage, even though your network often exists of like-minded people.

Great differences between ages and business risks can be disadvantageous for some members of the group. They will have no or less benefit from the fund, but still need to pay if one of the participants is sick. It can also bring risks if a group is very homogenous. Because many different participants reduce the chance that many participants are out of the running and therefore require a donation. When many participants receive a donation simultaneously the saved money may not be enough. It is, therefore, important to create a group where the risks and difference between participants are properly divided.

The concept is based on trust.

The basis of the Fund is mutual trust. In our opinion, in practice, it is hard to maintain trust in a large group. Be cautious who you work with.

The contributed premium cannot be designated as costs and is not deductible

An important difference with the invalidity Insurance for employees (AOV) is that with the AOV you can deduct the premium from the income tax in box 1. If you are incapacitated to work the donations are consequently taxed with income tax. In the Broodfonds your investment is not deductible and the donations from your fellow participants are not taxed with income tax.

Conclusion

The first Broodfonds now exist for five years and has proven to be successful. Up to and including 2013 thirty five Broodfonds groups have been established, beside that twenty funds are currently being established. Assuming that one in ten who is currently working is a self-employed professional, this number can still increase greatly. The Broodfonds is a good example of social resilience to absorb setbacks, and besides that it is a lot cheaper than the AOV. It is, however, a main concern that an obligation is entered on the basis of trust. We emphasize that it is important to ensure with whom these obligations are entered, especially when it concerns a larger Broodfonds group.