QUITING YOUR BUSINESS
At some point, you may be thinking of closing your business. There’s a lot to consider. Emotionally, but also financially! The larger your company, the more complex the legal and administrative settlement. To help you with this, there are two options; the Bbz stopper scheme and the IOAZ.
BBZ STOPPER REGULATION
You need to end your business? In that case, you can appeal to the Bbz. With this supplementary periodic benefit you can supplement your income up to social assistance level. Then you will have enough money to live on during the termination of your business. You apply for the benefit from us before you stop your business.
If you are thinking of stopping as a self-employed person because you have insufficient income from your business, you may be eligible for an IOAZ benefit. You will receive the benefit on the basis of the “Wet Inkomensvoorziening oudere en gedeeltelijk arbeidsongeschikte gewezen zelfstandigen” (IOAZ). This scheme only applies if you are 55 or older, but you have not yet reached the state pension age (AOW).
WHAT ARE THE DIFFERENCES?
YOU DON’T JUST DO IT
For the period that you need to wind down the business, you may be able to receive an additional living allowance. In this way we ensure that you do not have to hastily wind down or transfer your company.
The termination benefit is a periodic benefit up to the social assistance level, in the form of an interest-free loan for a maximum of 12 months.
The benefit is always a supplement to your income and that of your partner or other co-residents. Depending on the business results achieved, it will be determined at the end of the financial year whether or not you have to repay the benefit, see determining income.
Would you like to know what your options are? Make an appointment with an adviser from Bureau Zelfstandigen Fryslân and discuss your options in a personal meeting.
INCOME AFTER BUSINESS TERMINATION
After termination of self-employment, there is an arrangement for older entrepreneurs whereby you have an income at the social minimum until you reach the state pension age.
This is the IOAZ regulation (Wet inkomensvoorziening oudere en gedeeltelijk arbeidsongeschikte gewezen zelfstandigen). If you have to terminate or sell your company due to circumstances, because your income is too low, the IOAZ can offer a solution. Your partner, if he/she works in the company, may also qualify for the regulation under the same conditions. The IOAZ benefit is always a supplement to your income and that of your partner or other co-residents up to the IOAZ basis. The benefit will not start until after all self-employed activities have been discontinued. You must, however, submit an application for this regulation before business termination. Bureau Zelfstandigen Fryslân Bureau assesses the application and determines the right to a benefit.
Act “Inkomensvoorziening Oudere en gedeeltelijk Arbeidsongeschikte gewezen Zelfstandigen” (IOAZ)
The “Wet Inkomensvoorziening oudere en gedeeltelijk arbeidsongeschikte gewezen zelfstandigen” (IOAZ), it may be possible to receive an income guarantee at the level of the social minimum until your retirement age after you have terminated your self-employed activity. The IOAZ benefit is income supplementary, for example to income from employment or another benefit, up to social assistance level. The IOAZ is an unemployment benefit, not an early retirement scheme.
This scheme is especially intended for the self-employed, older than 55, who has to terminate the business or profession due to a low income. If your partner cooperates in the company, you can also rely on the scheme under the same conditions.
We take equity into account: assets such as savings, own house, car or jewellery, less the debts to be repaid and the legally determined capital release for entrepreneurs.
You are not eligible for a benefit if your other income and that of your partner, if any, exceed the IOAZ basis. After all, a benefit is always supplementary. You and your partner, if any, are also obliged to continue to look for work and to accept suitable work. Please note: an application for an IOAZ benefit must always be submitted before the company is terminated (deregistration from the Chamber of Commerce).
- You are 55 years or older, but younger than the state pension age
- You have been self-employed for at least 10 years or you have been an entrepreneur for at least 3 years and previously employed for 7 years, and can demonstrate this
- You have worked 1,225 hours or more per year in your own company. This is an average of about 24 hours a week.
- The income (that is the profit) from your company, together with any other income of the self-employed person, must be below an income limit for the last 3 years. This amount is determined every six months and is € 25,909.00 gross on average per year.
- For the future, you expect the income to be less than approximately € 26,760.00 gross per year. This amount is also determined every six months.
Your partner’s income also counts towards the income if he or she cooperates in the company and receives an employee compensation or a profit share for this. Your partner’s other income, for example wages or unemployment benefits, does not count.
- We take your equity into account. After termination of the business or profession, the assets are determined. As of January 2020, the exempt capital for the IOAZ is € 136,848.00 (an exemption of € 130,517.00 applies to supplementary pension provisions). Of the assets above € 136,848.00, 3% is regarded as income. We would be happy to explain to you in a personal conversation how the equity for the IOAZ is calculated exactly.