Part-time self-employed & self-employed deduction: what if you do not meet the hours criterion? – The Happy Financial

More and more people are choosing to do business part-time in addition to an employed job. Smart, because this way you build up experience and income without immediately letting go of all your certainties. But what about the tax benefits, such as the self-employed person’s deduction or starter’s deduction, if you work fewer hours? In this article you can read exactly how it works, what the rules are in 2025 and what the alternatives are if you do not meet the hour criterion.

The problem: part-time work and the hours criterion

To qualify for the most important tax business benefits – the self-employed deduction in starter’s deduction – you must comply with the so-called hour criterion. That means you:

• Minimal 1,225 hours per calendar year spend on your company.
• In addition, you have to more than 50% of your total working time spend on your business (unless you are a starting entrepreneur, see below).

Those 1,225 hours may sound feasible (that’s about 24 hours a week), but it can be quite difficult for part-time self-employed people. It is not only about billable hours with customers, but also about administration, marketing, travel time and training, as long as it is directly related to your company, it can count.

Tip: do you want to know everything about part-time self-employment in addition to your salaried job and taxes? Then read this extensive article.

Rules and numbers you need to know (2025)

• Hour criterion: at least 1,225 hours per calendar year.
• 50% requirement: you spend more than half of your total working time on your business. This requirement does not apply to starting entrepreneurs in their first years.
• Self-employed deduction 2025: €2,470.
• Starter deduction 2025: €2,123 (on top of the self-employed person’s deduction, applicable a maximum of three times in the first five years).
• After state pension age: the amounts apply for 50%.

If you do not meet the hours criterion, you will not lose your entrepreneurial status, but you will lose the right to these deductions. You then pay more income tax, because your profit may not be reduced with the self-employed deduction.

Examples: what does this mean in practice?

1. Example 1 – Part-time entrepreneur with a job
   You work 24 hours a week as an employee and 12 hours a week on your own company. You then end up with approximately 600 hours of entrepreneurial time per year. That is less than 1,225 hours and less than 50% of your total working time. You are therefore not eligible for the self-employed person’s deduction or starter’s deduction.
2. Example 2 – Full-time entrepreneur with varying assignments
   You work an average of 30 hours per week on assignments and 5 hours on administration and acquisition. In total you end up with 1,450 hours. You meet the hours criterion and the 50% rule, so you are entitled to the deductions.
3. Example 3 – Starter with track next to it
   You will start as a self-employed person in June in addition to your part-time job. Because you are a starter, there is no 50% requirement in the first year, only the minimum of 1,225 hours. For example, you work 1,300 hours on your company and another 1,600 hours as an employee. Because you are a starting entrepreneur, it is not a problem that you work more hours as an employee than you spend on your business. You are therefore entitled to the entrepreneur’s deductions.

Common mistakes made by part-time self-employed people

• Not keeping track of hours properly. Without reliable time registration you cannot demonstrate that you meet the criterion.
• Only billable hours count. Don’t forget that preparation, travel, administration and training count – provided it is business-related.
• Wrong assumption about 50% rule. Many part-timers think that 1,225 hours will automatically suffice, but half of your total working time must also be spent on your company, unless you are a starter.
• Apply starter deduction too quickly. You may only use the starter’s deduction if you are also entitled to the self-employed person’s deduction.
• Starting planning too late. If you only realize in November that you have too few hours, it is too late. Monitor your hours monthly.

Step-by-step plan: this is how you determine your situation

1. Step 1: Track your hours. Write down all the hours you spend on your business. Use a time tracking tool or spreadsheet.
2. Step 2: Calculate your total working time. Also include your hours as an employee or other activities, so that you can determine whether you spend more than 50% on your business.
3. Step 3: Check if you are a starter. Starters do not have to follow the 50% rule temporarily, but they do have to achieve 1,225 hours.
4. Step 4: Assess your right to deduct items. Do you meet the hour criterion? Then you may apply the self-employed person’s deduction (€2,470), and possibly the starter’s deduction (€2,123).
5. Step 5: Can’t make it? Then you can take advantage of other benefits, such as the SME profit exemption (14% of your profit, without hour criterion).
6. Step 6: Make a realistic plan for next year. If you want to take advantage of the deductions next year, structurally plan more time for your business.

Summary checklist

• Spend at least 1,225 hours per year on your business?
• Have you invested more than 50% of your total working time in your company? (except as a starter)
• Have you kept your time registration?
• Starter deduction only applied if you also meet the hours criterion?
• Have you looked at alternatives (such as the SME profit exemption)?
• Have you made your next annual plan?

Calculate what you have left part-time

Do you want to know what your net savings are as a part-time self-employed person – with or without deductibles? Use the template “What are you left with if you are part-time self-employed?” This allows you to immediately see the difference in tax, net income and benefits.

Would you also like to view the extensive online lecture ‘part-time self-employed’? Then download the part-time bundle. This not only includes the online lecture, but also the template ‘what are you left with if you are part-time self-employed’.