Income problems? New rules on temporary support for the self-employed

14 april 2020 | Door:  Matthijs van Dorssen

If you are self-employed you can obtain additional income support via an accelerated procedure to help cover their living costs/working capital for a period of three months, from 1 March to 31 May 2020. The support is available only to self-employed persons – including directors/major shareholders – who have no or very little income as a result of the coronavirus crisis.

This information can be found in the Temporary Bridging Scheme for Independent Entrepreneurs (Tijdelijke Overbruggingsregeling Zelfstandige Ondernemers (Tozo)).

Living costs

This temporary support scheme to help cover the living costs of independent entrepreneurs does not mention a means or partner test. In other words, any existing assets and/or partner’s income will not present an obstacle to receiving the support. The viability of the business will also not be assessed.

Advance payment

Local authorities (the application is made in your place of residence) will now start implementing the scheme, which will be based on an advance payment. The support will be provided within four weeks. This also applies to working capital loans of up to € 10,517. Your income as a self-employed individual will be supplemented up to a maximum net amount of € 1,500 if you are married and a maximum net amount of € 1,050 if you are single. When you are between the age of 18 and 21, the lower social assistance benefit level will apply. Many local authorities have opened a digital service point where all the information is available. From 30 March there will also be physical emergency service points in major cities such as Utrecht, Amsterdam, The Hague and Rotterdam.

No prior assessment

The contribution towards living costs will be awarded once for a three-month period and paid out monthly. You must declare that your expected income for the next three months will be less than the minimum social income as a consequence of the coronavirus crisis. Income is therefore not assessed in advance.

The payment counts as income for the purposes of any allowances you receive. These may therefore be reduced as a result. You will need to pass this information on yourself, as otherwise there is a risk that you will have to pay back any allowances that have been overpaid.

From 1 March

An application for a contribution towards living costs can be submitted until 31 May 2020. You can apply for such a contribution with retroactive effect from 1 March 2020.
All applications submitted within the scheme period, i.e. up to 31 May 2020, can be backdated in this way. The contribution towards living costs will be awarded once for a three-month period and paid out monthly.


To receive this temporary support, you must meet the following requirements:

The scheme also applies when you are self-employed and employ staff. Even when you are director/major shareholder the scheme can be applied if the conditions are met. You will have to plausibly demonstrate that the company is no longer able to pay any salaries.

Working capital loan

If you experience liquidity problems as a result of the coronavirus crisis can apply for a working capital loan of up to € 10,157 with an interest rate of 2%. This will be made available within four weeks. The maximum term of the loan is three years and no repayments have to be made until January 2021.

To qualify for a loan, you as an independent entrepreneur must declare and plausibly demonstrate that you are experiencing liquidity problems as a result of the coronavirus crisis.

No cost standard divisor

During implementation of the schemes the so-called ‘kostendelersnorm’ (cost standard divisor) will be left out of consideration. This standard means that the benefit payment is lower if several adults are living together, as it is assumed that the costs will be shared. This will now not be the case.

Ask Alfa

If you have any questions about the specific terms or conditions, please contact your Alfa advisor. We are always nearby.