IOAZ Business Cessation for Entrepreneurs in Zoetermeer

IOAZ Business Cessation in Zoetermeer

IOAZ business cessation refers to the permanent closure of your self-employed business as a condition for receiving benefits under the Income Provision Act for Older and Partially Disabled Self-Employed Persons (IOAZ). This safety net is essential for entrepreneurs in Zoetermeer aged 55 or older who close their business and lose income. This article covers all the conditions, steps, and tips, including local advice from Het Juridisch Loket Zoetermeer.

Legal Basis for IOAZ Business Cessation

The IOAZ scheme is governed by the Income Provision Act for Older and Partially Disabled Self-Employed Persons. Key rules for business cessation are found in Article 7 IOAZ: your business must be fully discontinued, with no profit-making activities. Article 8 IOAZ addresses winding up, such as selling assets and settling debts.

This legislation supports entrepreneurs who have not built up an AOW entrepreneurs' scheme (former FOR). The UWV verifies whether the closure is 'factual and legal', in line with the IOAZ Policy Rules. In Zoetermeer, you can contact the Municipality of Zoetermeer for additional local support.

Conditions for IOAZ Benefits After Business Closure

To qualify for an IOAZ benefit in Zoetermeer after business cessation, the following requirements apply:

• Age: At least 55 years old at the time of closure.
• Self-employment: At least 10 consecutive years as an entrepreneur, including the last 5 years immediately before cessation.
• Full closure: No restart within 5 years (anti-abuse provision, Art. 16 IOAZ).
• Income: No unemployment benefits, social assistance, or alternatives; income below social assistance level.
• Activities: Participation in economic activities with profit motive.

The UWV checks via Chamber of Commerce deregistration, tax returns, and bank records. Incomplete closure? Application rejected.

What Constitutes Full Business Cessation?

Complete business cessation in Zoetermeer includes:

1. Deregistration from the Chamber of Commerce (KvK).
2. Sale or disposal of inventory, equipment, and premises.
3. Settlement of debts and closure of administration.
4. No more invoicing or customer acquisition.

Example: A Zoetermeer construction sole trader sells tools, deregisters from KvK, and stops taking jobs – approved. Occasional side income? Rejected.

Application Procedure for IOAZ After Business Cessation

Apply via UWV:

1. Prepare: Gather KvK proof, invoices, and income data.
2. Submit: Within 8 weeks after cessation using the UWV 'IOAZ Application' form.
3. Assessment: Decision within 8 weeks; possibly an interview or inspection.
4. Payment: Monthly until AOW age, with periodic reviews.

Benefit amount: Approximately 70% of minimum wage, tailored to circumstances.

Practical Examples of IOAZ Business Cessation in Zoetermeer

Example 1: Ms. Jansen (58), hairdresser in Stadshart since 1995, closes due to illness. KvK deregistered, salon sold, IOAZ application approved: benefits until age 67.

Example 2: Mr. De Vries (56), shopkeeper in Buytenwegh, closes business but rents out premises. UWV rejects: rental income prevents full cessation.

Example 3: Zoetermeer webshop owner (55+) closes but restarts quickly. Result: benefits reclaimed and fine.

Rights and Obligations in IOAZ Business Cessation

Rights:

• Poverty protection until AOW.
• Right to a hearing and objection (Art. 4:7 Awb).
• Exemption for disability (Art. 3 IOAZ).

Obligations:

• Provide proof of cessation.
• Report changes (income, partner).
• No new business for 5 years.

Frequently Asked Questions

Tips for Entrepreneurs in Zoetermeer

• Consult Het Juridisch Loket Zoetermeer for free advice.
• Check with the Municipality of Zoetermeer for local subsidies on cessation.
• Hire an accountant for KvK and administration.
• Document everything for UWV review.