Budget Day 2020
What did the Prinsjesdag 2020 announcements mean for independent care providers? Hmmm? Secretly, we’d rather dwell on Máxima's dress and the hats in the audience than the words coming from the throne. If you had the same problem, then read on to find out how this year’s Budget Day actually impacts you as a freelancer in the healthcare sector.
Budget Day 2020 for Healthcare Freelancers: Take note of this!
1. Bonus for independent healthcare providers
Just like all other healthcare providers, self-employed workers in the healthcare sector are also entitled to a net bonus of €1000 for their efforts during the corona crisis. This bonus is for 2020 only—for 2021 you’re also entitled to a net bonus of €500. Healthcare institutions determine who receives this bonus. You can only claim it once, so if you work for multiple institutions, you’ll need to make sure to coordinate this.
Haven’t heard from the organizations you work with? Then go ahead: step up, and ask for yourself if you’re eligible for this ‘thank you’ bonus.
2. All corona schemes are tax free
If you received a care bonus, or made use of the Temporary Bridging Scheme for Independent Entrepreneurs (Tozo), then all of that money is yours. There’s no need to pay taxes on it. Any money you received for allowances, such as a housing allowance, is also exempt.
3. Lower income tax on profits
In 2020, profits up to €68,507 were taxed at 37.35%. In 2021 this goes down slightly, to 37.1%. If you earned more than €68,507, the rate remains unchanged, at 49.50%. The general tax credit and employee tax credit will be slightly higher in 2021, which means that the total amount on which you’re taxed will be lower.
4. A smaller self-employed deduction
As an independent care provider, you’re entitled to a self-employment allowance. Normally you have to work at least 1,225 hours per year to be eligible, but because of the coronavirus pandemic, this requirement has been relaxed . The self-employed deduction has been capped at € 7,280 for several years, but in 2020 it will be reduced by €250. From 2021 it will be €360 less every year. By 2036, the deduction will only be € 3,240.
5. Higher contributions to the Health Insurance Act
As an independent healthcare provider you pay annually into the Health Insurance Act, at an amount determined by your income. In 2021 this will go up to 5.75%, a 0.3% increase over 2020.
And you're back up to speed!
These are the most important outcomes of Prinsjesdag 2020 for independent care providers, so you’re completely up to date now. It’s important to remember, though, that this information is only applicable to your work as a self-employed person.