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Before you get started, it’s smart to check your employment contract. Some contracts contain a non-competition clause, or other conditions that restrict ancillary activities (nevenwerkzaamheden) or for which you must request prior permission from your employer. Read your contract carefully and, if necessary, discuss it with your employer. Transparency on this is often the best way to prevent surprises or hassle in the future. A good relationship with your employer is essential if you are going to be a part-time entrepreneur.
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As a part-time freelancer, you will have income from two sources: your employment and your business. For Income Tax (Inkomstenbelasting), these incomes are added together. This means your total income will be higher, which affects the tax you pay. Because no tax has been withheld on your income from your business, you pay this retrospectively with your annual tax return.
Simple example: Suppose you earn €30,000 in employment and €10,000 as a freelancer. Your total income for the Tax Authorities (Belastingdienst) will then be €40,000. The tax you pay on this will be calculated on this combined amount. The amount of tax you pay on your business income depends on many factors, for example whether you are an entrepreneur for Income Tax purposes.
Because every situation is different, the Tax Authorities have made an online check. By doing the check, you can see whether you are indeed an entrepreneur for Income Tax purposes. You may also simply have to file an Income Tax return as a private individual. If the online check results in the second situation, then you state any profit from your business as ‘result from other activities’ (resultaat uit overige werkzaamheden). You are then also not obliged to prepare annual statements, for example.
Keep in mind that as an entrepreneur, in most cases you are obligated to file a turnover tax declaration, or VAT return (btw-aangifte). Every quarter you remit the VAT paid to you to the Tax Authorities, and at the same time you can reclaim the VAT you have paid. Throughout the quarter, it is wise to track whether you’ll have to pay VAT or will be able to reclaim VAT!
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As a freelancer, you can benefit from attractive tax advantages. The most important ones are the self-employed deduction (zelfstandigenaftrek) and start-up deduction (startersaftrek). To qualify for these deductions, you must be an entrepreneur for Income Tax purposes and you must meet the hour criterion (urencriterium): you must spend at least 1,225 hours per calendar year on your business. This amounts to an average of approximately 24 hours per week. Are you a starting entrepreneur alongside your job in employment? Estimate in advance whether you will reach those 24 hours. If you work part-time, it is realistic to reach the threshold. Alongside a full-time job, this is harder to substantiate, but it is not impossible.
Do indirect hours count? Absolutely! Not only the hours you spend directly on clients count, but also indirect hours. This includes:
If you work in employment alongside your own business, and you are no longer a starter (first 5 years as an entrepreneur), you must work at least as many hours in your business as you do in employment to claim the self-employed deduction. For example; if you work 1,600 hours in employment in a year, you must also spend 1,600 hours on your business to claim the self-employed deduction. However, if you are still a starter, the minimum of 1,225 hours applies at all times.
A deductible item that is independent of the hour criterion is the SME profit exemption (MKB-winstvrijstelling). This is a percentage of your profit on which you do not have to pay tax. The SME profit exemption percentage in 2026 is 12.7% of the profit. Another deduction scheme independent of the hour criterion is the investment deduction (investeringsaftrek).
Want to know everything about deductions and whether they apply to you? Then read our blog on tax deductions.
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The Small Business Scheme (kleineondernemersregeling or KOR) is a VAT exemption. If your annual turnover remains below €20,000, you can choose to use the KOR. You then don’t have to charge VAT to your clients and don’t have to file VAT returns.
The KOR and employment can go well together, as long as you stay within the turnover limit. Are you considering the KOR? Here are the pros and cons:
Advantages:
Disadvantages:
If your turnover remains well below €20,000 per year, the KOR can save you a lot of time. If your turnover is above that or you expect many VAT-liable costs, then the KOR is probably less interesting.
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Even as a part-time freelancer, you must keep a good administration. This includes, among other things:
Many starting part-time freelancers underestimate the administrative burden. It may seem small, but the small bits quickly pile up. Tips for keeping an overview:
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Part-time entrepreneurship alongside employment is a great way to turn your hobby into work and earn some extra money. However, there are important points to consider in terms of tax and administration. With good support, you can avoid many worries and focus on what you love to do: entrepreneurship. A bookkeeper like Kees de Boekhouder can help you get your administration in order from day one and start without worries. Schedule a free introductory meeting, we are happy to help you get started!
Freelancing in addition to your employment will probably also mean that you are often working for your own business in the evenings and on weekends, as you want to provide your customers with your product or service on time. Hard work, but maybe this way you will land that one dream job that will allow you to grow even further!
After reading this blog, are you curious about how Kees de Boekhouder helps entrepreneurs with their bookkeeping every day? Schedule a no-obligation, digital introductory meeting with us!
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Yes, this is possible. However, it’s important to check your employment contract for any restrictions or the obligation to ask for permission from your employer in advance.
Yes, your income from employment and your business are combined for income tax purposes.
You may be entitled to tax benefits such as the self-employment deduction and starter’s deduction if you meet the hourly criterion of 1,225 hours per year. Indirect hours, such as administration and marketing, also count. Even if you don’t meet the hourly criterion, you can still use the SME profit exemption.
The KOR is a VAT exemption if your annual turnover remains below €20,000. You do not have to file a VAT return, but you also cannot deduct VAT on your business expenses. The KOR and a permanent job can work well together.
You must at least keep invoices, receipts, a record of your hours, and a mileage log if applicable. It is advisable to keep your administration organized, for example, by opening a separate business bank account.
Schedule a no-obligation, digital introductory meeting with us.
