FREQUENTLY ASKED QUESTIONS ABOUT CHILDCARE IN THE NETHERLANDS
If you hire someone for domestic work at your home, you can be exempted from the standard Dutch labor law requirements, such as paying wage taxes for your domestic worker. This opting out clause, defined by the regulation ‘Dienstverlening aan Huis’, requires that you hire someone for less than 4 days per week, irrespective of the number of hours per day you hire domestic services.
For example, if you hire a nanny for 3 days or less per week privately at your home, you do not need to withhold wage taxes, provide payslips or annual income statement. Your nanny is not an employee. You just pay your nanny the agreed fee, you do not need to make arrangements with the Dutch Tax Office. Please note that the money your nanny receives classifies as income before tax. Your nanny is required to report her income to the Dutch Tax Office at the end of the year, by filing income tax. Your nanny subsequently receives a tax bill from the Dutch Tax Office. To find out how much tax your nanny is due, check our tax calculator.
To apply for the domestic services regulation, you need to meet the following requirements:
- You hire someone for services in or around your home
- You hire someone in the capacity of a private person
- You hire a private person for less than 4 days per week, irrespective of the number of hours
Babies are expensive. Nappies, clothes, the pram … all these things cost money. The Dutch government provides for child benefit to help you with the costs of bringing up your child. The “Sociale Verzekeringsbank” (SVB) is the organization that pays your child benefit. Read here more.
When a child turns 16, there is a change in the qualifying rules for child benefit. You can still receive child benefit for children aged 16 or over, but the qualifying conditions are different from those for younger children. For this category, additional conditions apply concerning the child’s education and income. It is therefore important that you notify the “Sociale Verzekeringsbank” (SVB) of any changes in your family.
Your child goes to school
If your child goes to school and has at least 213 hours of lessons or practical classes per quarter, and the education is regular full-time education, you will continue to receive child benefit as usual. If your child pursues higher vocational training or goes to university, however, your child benefit will be stopped and your child can apply for a student loan or grant.
If your child stops pursuing the course or interrupts the course for longer than 6 months, the child benefit may also be stopped. The same applies if your child switches from full-time to part-time education. In that case, you may still be entitled to child benefit if your child qualifies as unemployed or incapacitated for work.
Your child is unemployed or disabled for work
You can receive child benefit for children who are unemployed (or partly unemployed). In that case, your child must register as a job-seeker within a month of becoming unemployed. NB: If your child ends or interrupts his or her course of education, he or she must also register as a job-seeker within one month. By “register as a job-seeker”, we mean with the CWI Centre for Work and Income for at least 19 hours a week. In that situation, your child cannot turn down a job offer.
Children who are disabled for work can qualify for child benefit as well.
Your child has a job
Children who go to school or who are unemployed are allowed to earn a certain amount per quarter. If your child’s earnings exceed that amount, you are not entitled to child benefit for that quarter.
If your child lives at home with you, and earns less than € 1,240 net per quarter, this will not affect your child benefit. If your child lives away from home, he or she can earn up to € 1,754 per quarter without this affecting your child benefit.
Blue Umbrella receives the Tax Office correspondence for many clients. Blue Umbrella checks whether response is required and will act on your behalf. Have you requested Blue Umbrella to receive your tax letters? No action is required from you, Blue Umbrella will contact you. If you didn’t hear from Blue Umbrella, please contact our customer service.
The Dutch Tax Authorities send out two types of letters. One with their logo printed in Blue and one with their logo printed in Red. The former is about letters which are send out by the tax unit for income tax. The latter is used by the tax unit for the childcare allowance.
If you have a domestic or private servant or a nanny and you expect this “blue” letter to be about your situatie as employer, please contact Blue Umbrella. Usually, these letters are about declaring income tax for your servant or nanny.
All tax letters with the red logo is about your childcare allowance. Every time Blue Umbrella contacts the tax office to file for a change, you receive a confirmation letter from the tax office. We advise you to retain a copy of those letters which contain the subject header “beschikking” or “herziene beschikking”. Please contact Blue Umbrella if you are unsure what to do with the letter.
Employees of International Organization (embassy staff included) may qualify for the Dutch childcare allowance. If you and your partner or spouse, living with you at the same address, are engaged in a gainfull occupation and you make use of formal childcare in the Netherlands you can apply for an allowance. Contact our Blue Umbrella staff for more information.
To sign up for Blue Childcare is very easy. Just create your own MyBlue login by free registering on the home page. After you have registered you can choose any service you like to have.
To sign up for the Blue Childcare subscription, you have to agree with the Blue Umbrella terms and conditions. You receive an agreement which we need you to sign.
Once we have received your signed agreement, Blue Umbrella starts to file for your childcare allowance. We will contact your childcare center and let them know that they can charge us for your childcare cost. You receive from us a notification for your parental contribution (see under “What is my parental contribution”).
Our Blue Childcare Service will help you find a childcare provider and will assist you with the paperwork. We will pay the invoices directly to your childcare provider and we will apply for childcare allowance on your behalf. The monthly fee will be collected from your account after you have recieved the childcare allowance from the Dutch Tax Office.
Dutch childcare allowance (“kinderopvangtoeslag”) is a subsidy provided by the Dutch tax office to help working families meet the cost of childcare in the Netherlands. The tax office provides an allowance for each child receiving professional childcare. It is calculated according to each family’s projected total monthly childcare costs and expected household income for that fiscal year. Proof of each family’s actual childcare costs and annual income is required at the end of the fiscal year.
The breakdown of your monthly contribution can be found on your MyBlue page. Your parental contribution is set provisionally, as it is comprised of an estimated, fixed, childcare cost amount and your Blue Umbrella fee.
Your real monthly childcare cost, paid by Blue Umbrella, may vary on a monthly basis. Those variations between the estimated and the real childcare cost may result in an actual lower or higher contribution.
Deviations beyond a certain bandwidth will be corrected during the course of the year. Relatively small deviations will be settled at the end of the year.
Blue Umbrella will contact you early in the next calendar year to inform you about your final childcare allowance entitlement.
The Dutch Child Benefit – not to be confused for Ducth Childcare Allowance – is money from the Dutch government paid towards the expenses of raising a child. If you live or work in the Netherlands and you have a child you are eligible to receive this benefit. Read more here.
Blue Umbrella processes your final annual childcare of the previous calendar year first to settle your payment balance with Blue Umbrella. The Tax Office processes your final annual childcare cost of the previous calendar year to determine your childcare allowance entitlement of the previous calendar year.
Blue Umbrella sends all clients at the beginning of a new calendar year a correction form for the final childcare allowance filing of the previous calendar year. Based upon this “final childcare allowance filing” Blue Umbrella clears client’s payment balance with Blue Umbrella. Resulting in a refund or an additional payment.
In the middle of the calendar year, the Tax Office sends out a similar request to every parent who claimed childcare allowance in the previous calendar year. This time, the Tax Office requests proof of childcare cost for the claimed childcare allowance. The Tax Office links this information with your income tax filing. Based upon the submitted proof – annual statement childcare cost – your allowance entitlement will be determined. Resulting in a refund or additional payment.
If no changes in your childcare cost overview or annual income statement occurred, a Nil settlement with the Tax Office follows.
It is also possible to receive child benefit for children who live away from home, but for this category the “Sociale Verzekeringsbank” (SVB) will need more information from you. For children who live at home, the minimum costs that parents incur are easy to establish. In the case of children living away from home, however, these costs can vary considerably. It is quite possible that you have spend more than what you spend for a child living at home. In such cases, you may qualify for a higher child benefit rate.
For this reason, the SVB needs to know how much you contribute to the cost of providing for your child that lives away from home. This means that you may be asked to provide evidence of the expenses you incur.
On your MyBlue page you’ll find your monthly contribution schema. This schema tells you how much contribution you have to pay each month to Blue Umbrella. The contribution is composed of your monthly childcare cost (childcare center or child minder) and the Blue Umbrella fee minus your allowance entitlement. Note that your allowance entitlement may change over the course of the year if your childcare cost and/or your childcare allowance changes. Your parental contribution is automatically adjusted if the childcare cost or childcare allowance changes. Your contribution schema tells you what has changed.
We work in partnership with
Filing your taxes quick and easy!
Filing your Dutch income tax return couldn’t be easier! Start by signing up for free. No strings attached. Seriously! Onto your personal MyBlue Page you’ll find a wealth of tools, such as our plain English tax questionnaire. Complete it at your own time and pace. When ready, it’s our turn. We do the rest!
Calculate your income tax
Calculate your Dutch income tax! For employed and self-employed persons.
SMALL BUSINESS TAX SUPPORT
Dedicated business tax support for the self-employed and small business owners.