Starting as a freelancer from unemployment benefit
Written by Ilias Aarrass7 min read · Published on · Last reviewed on 
In short
Under the UWV starter scheme you build your business for 26 weeks while your benefit continues with a fixed 29 per cent reduction, no job-search duty and no offsetting of revenue.
- You apply in advance through your work adviser and only start once you have permission.
- During the starter period you may not work as a freelancer for your former employer.
- Without the scheme UWV offsets the hours you work, including indirect hours such as acquisition and administration.
- Your benefit counts in box 1 alongside your profit; starting late in the year usually puts the 1,225-hour criterion out of reach.
Lost your job and been toying with the idea of working for yourself? Starting from unemployment benefit is possible, and UWV even has a dedicated scheme for it. With the starter scheme you keep a large part of your benefit for six months, your job-search obligation lapses and you may put all your time into your business. This article explains how the scheme works, what the conditions are and what to watch fiscally.
The starter scheme in brief
The starter scheme gives you 26 weeks to build your own business while keeping your benefit. Your unemployment benefit continues but is reduced by a fixed 29%. In return you get a lot: no more job-search obligation and you may spend all your hours on your business. What you earn with the business in that period is not additionally deducted from your benefit: the 29% reduction is the only offset.
Worked example: benefit of € 2,000 gross a month
- Benefit before the starter scheme
- € 2,000 gross
- Fixed 29% reduction
- € 580
- Benefit during the 26 weeks
- € 1,420 gross a month
- Business revenue in that period
- stays fully on top
Result: A guaranteed floor of € 1,420 for six months, while every euro of revenue is simply yours
The conditions
You apply for the starter scheme in advance at UWV, through your work adviser. You only start after receiving permission. The key rules:
- You have a current benefit entitlement and UWV considers your plan viable; you usually discuss a short business plan.
- You apply before starting; if you begin without permission, the normal offset rules apply.
- During the starter period you may not work as a freelancer for your former employer.
- The scheme lasts at most 26 weeks and can be used once per benefit entitlement.
- You report changes (stopping, back into employment) to UWV immediately.
The alternative: offsetting hours
If you are still unsure or want to try small-scale first, you can also work self-employed hours without the starter scheme. You then report your hours weekly and for every hour of business activity you receive less benefit, including indirect hours such as acquisition and administration. That route is more flexible, but with serious business building your benefit shrinks quickly.
| Starter scheme | Offsetting hours | |
|---|---|---|
| Benefit reduction | Fixed 29%, 26 weeks | Per hour worked |
| Job-search obligation | Lapses | (Partly) remains |
| Business income | No extra offset | Hours reduce the benefit |
| Suits | Going all-in on the business | Careful testing |
Fiscally sound from day one
Once you start, you are simply an entrepreneur: you register at the Chamber of Commerce, keep records and invoice with VAT. Your benefit counts in your tax return as wages in box 1, alongside your business profit. If you start in the second half of the year, the 1,225-hour criterion is often no longer attainable that year: the counter does not restart, it remains an annual threshold.
Also set money aside for income tax and VAT from the first invoice. How much is covered in how much to set aside for tax.
Frequently asked questions
Does UWV have to approve my business plan?
You need UWV's permission in advance for the starter scheme. You usually discuss your plans with your work adviser; an extensive formal plan is not always mandatory, but a well-thought-out story considerably improves your chances.
What happens after the 26 weeks?
Then the starter scheme ends. If you continue fully as an entrepreneur, your benefit stops. If the business does not yet pay enough and you still have benefit entitlement left, you can fall back on the normal per-hour offset. Discuss this with UWV in good time.
May I work for my former employer?
Not as a freelancer during the starter scheme. That rule prevents an employer from dismissing someone only to rehire them more cheaply as a freelancer, partly at the expense of the benefit system.
May I skip the scheme and just keep applying for jobs?
Yes, the scheme is a choice, not an obligation. You can also work small-scale self-employed hours alongside your applications via the hour offset, or wait to start until your benefit ends.
Does my benefit count for tax?
Yes. Unemployment benefit is wages for income tax and sits in box 1 alongside your business profit. UWV already withholds wage tax, but the combination with your profit can change the final assessment. Anticipate that.
Do I also get the starter's deduction?
That is separate from the UWV starter scheme. The starter's deduction is a tax deduction you only get in a year in which you meet the 1,225-hour criterion. In 2026 it is € 2,123; the government intends to abolish it from 2027, but that is not final yet. See the starter's deduction ending in 2027.
Sources
- Starter period: 26 weeks with a 29 per cent reductionUWV · uwv.nl
- Starting a business from unemployment benefitUWV · uwv.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.
