The LCR interest group, together with budget information officer Nibud, calculated the effect of the tax rules on the remuneration of volunteers.
These effects are significant. A small overshoot will already result in reduced benefits, which quickly saves a substantial amount for those who aren’t so well-off. There are also consequences for other low-income groups if they get too high a refund, because they have to pay extra taxes and receive lower benefits.
Compensation for volunteering
About 2 percent of many volunteers in the Netherlands receive compensation for their work. This allowance is tax-free up to a maximum of EUR 180 per month or EUR 1,800 per year. Next year this limit will rise to €1,900.
If someone goes over the cap, income tax must be paid on the total volunteering allowance. According to calculations by LCR and Nibud, those who receive social assistance and receive an extra 1 euro a year as a volunteer allowance must then repay 150 euros a month for a year.
The LCR defines the rules as unfair and unclear, especially since the tax and customs administration adds expense allowances, such as a travel allowance, to the voluntary contribution and classifies it as income. This is why many volunteers pass the exemption quickly.
Lots of complaints about unclear rules
According to Fatma Koşer Kaya, president of the National Client Council, several volunteers tell the council that they find the rules unclear. It is not known exactly how many people there are with problems.
In addition to the financial consequences, it also has emotional consequences, says Koşer Kaya. “These people want to participate in society. You tell them: if you get even a little extra euro, you can give it all back. You actually put them out of society”.
People like Esmée Kroon, who have to check every month to see if they’ve done too much volunteering. “I was shocked when I heard that,” she says of the rules. Luckily she stayed under the ceiling. “I would never be able to pay it back. Shopping is hard enough.”
Don’t sit on the sofa
Kroon is chronically ill, on welfare and can only work limited hours. He does it voluntarily, even at a foundation for chronically ill young people. “A normal job doesn’t pay and I’m not a person who sits on the couch,” he says.
According to Kroon and LCR, it’s fine for the government to set a limit, but expenses such as travel expenses shouldn’t be part of it. “People on benefits have to add money this way, so they’re effectively forced to stop volunteering,” says Kroon.
