A contingency plan for your business: what if you are out for a month?
Written by Ilias Aarrass6 min read · Published on · Last reviewed on 
In short
If illness or an accident puts you out, your filing obligation and fixed costs continue: one page of arrangements and an authorisation in advance keep your business running.
- Even without turnover you must file VAT; a nil return avoids the € 82 penalty.
- Arrange authorisation for your bookkeeper before you need it.
- It is not the lost revenue but the continuing fixed costs that call for a buffer.
- The 1,225-hour criterion still applies in the year you drop out.
A broken wrist, an operation or a few weeks flat after an accident: it happens to everyone at some point, and as a freelancer it is not only your work that stops. Your VAT return still has to be on time, your clients are waiting for answers, your invoices do not go out by themselves and your fixed costs continue. Most business owners arrange nothing for this, because it is never urgent. This article shows how to build a contingency plan in an hour that makes the difference at such a moment.
Your obligations simply continue
The tax authorities do not take a plaster cast into account. Your VAT return must be in on time, even with zero turnover: then you file a nil return. If you do not, a € 82 penalty follows, and paying late adds a payment penalty. See filing VAT late and penalties for late filing and culpability.
If circumstances genuinely stop you paying, request a deferral or a payment arrangement rather than letting it slide; that saves collection costs and trouble afterwards. See not being able to pay your tax.
The contingency plan: one page
Write down on one page what someone needs to know to keep your business running for two weeks. Who are your current clients and what was agreed? Which invoices are outstanding and which still have to go out? Where are your records and who has access? Who is your bookkeeper and how are they reached? Which fixed costs run and from which account do they go?
Keep that sheet somewhere your partner or a trusted person knows, and note who may be called to take over work. If you often work with the same peers, agree between you to cover each other's jobs if someone drops out; see working with other freelancers.
| Item | What you note |
|---|---|
| Current assignments | Client, contact, agreement and deadline |
| Money | Outstanding invoices, fixed costs and which account |
| Access | Where the records are and who may access them |
| Contacts | Bookkeeper, regular colleague, insurer |
| Filings | Which deadlines are coming and who is authorised |
Money: the gap between revenue and fixed costs
If you are out for a month, your revenue stops immediately but your fixed costs do not. For most freelancers a buffer is therefore the main safety net: work out your monthly fixed costs, private and business together, and make sure you can live on that for a few months. See building a buffer and making a cash flow forecast.
For longer absence, disability insurance is the usual solution; the premium is deductible as an expenditure for income provision. There are also collectives in which entrepreneurs support each other for a period during illness. What is and is not covered differs greatly per form. See disability insurance and being ill without disability insurance.
Worked example: six weeks out of action
- Lost revenue
- € 9,000
- Fixed costs that continue
- € 2,100 business, € 3,600 private
- VAT for the quarter, still to pay
- € 1,800
- Buffer needed
- about € 7,500
Result: It is not the lost revenue but the continuing costs that are the problem: they have to come from your buffer. Anyone who already set aside last quarter's VAT is left with a € 5,700 gap here instead of € 7,500.
If it lasts longer or is worse
With longer absence the question arises whether to pause the business. You can pause your business without deregistering it immediately; what that means for your deductions and hours criterion is in stopping or pausing as a freelancer. Bear in mind that the 1,225-hour criterion still applies for the year in which you drop out.
Also consider the scenario nobody wants to discuss: what if you are no longer there. Make sure someone knows where the records are, who the clients are and which obligations run. A living will or a power of attorney can arrange for a trusted person to wind up the business. Without it, a relative can be stuck for months on access nobody has.
Frequently asked questions
Must I file VAT while I am ill?
Yes, the filing obligation continues. With no turnover, file a nil return. Skip it and a € 82 penalty follows.
Can my partner file my return if I drop out?
Only if it is arranged with an authorisation or through your bookkeeper. Arrange it beforehand; afterwards it costs time you do not have at that moment.
Do weeks of illness count towards the hours criterion?
Hours in which you do not work do not count. The 1,225-hour criterion still applies for that year, so a long absence can cost you the self-employed deduction.
How big should my buffer be?
Count your fixed costs, business and private together, for three to six months. Add the VAT and tax you still owe on revenue already received.
Sources
- Penalty for a late VAT returnBelastingdienst · belastingdienst.nl
- Conditions for the hours criterionBelastingdienst · belastingdienst.nl
Sources checked on
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
