I may be starting my own business as a secondary occupation – what does this mean for me?

I am unemployed

If your unemployment period began before 1 October 2018, you can start your own business on 1 October 2018 or later if you declare that you continue to be available for the job market. This means that you must be able to take on full-time paid work with a day’s notice, and you must continue to job log and attend meetings called by us and the Jobcenter. 

However, in contrast to the present rules, you will be allowed to start a business with the aim of making it your main occupation, and you may also work during ordinary working hours.

For each month, your benefit form must indicate the number of hours you have worked in your business. Such hours will result in a deduction of your payments. For example, if you have spent 50 hours in your business, your hours with benefits will be 160.33 – 50 = 110.33 hours (assuming there are no deductions for paid work, holiday, etc.).

You are entitled to benefits while running your own business for 30 weeks within a period of 104 weeks. Please note that those 30 weeks include weeks in which you work part-time while you receive benefits. While this also applies to weeks with paid work before 1 October 2018, it does not apply to weeks in which you run your own business as a secondary occupation before that date.

This means that if you already used your 30 weeks with benefits because you had part-time paid work, you will not be entitled to benefits while running your own business as a secondary occupation.

The 30 weeks include all weeks in the month in which you start your business, making it advantageous for you to start your business at the beginning of a month. It is also worth noting that the 30 weeks include all weeks in any month in which you receive benefits whether or not you work in all the weeks. Learn more how the 30 weeks are used on this page in the section "Weeks counting towards your 30-week benefit rights".

 

 

I expect to become unemployed 1 October 2018 or later and wish to continue running my own business as a secondary occupation

Provided that we can approve your 2-year benefit rights when you become unemployed, you can continue running your own business with supplementary benefits if your employer(s) has/have reported to the tax authorities’ income register:
  • an average of at least 80 paid hours per month in the last 6 months
    AND
  • at least one paid hour in 5 of the last 6 months. 
You must, however, be fully available for the job market. You must look for and be able to take on full-time work with a day’s notice. You must furthermore attend meetings called by us and the Jobcenter. But in contrast to the present rules, you are allowed to run your business for the purpose of making it your main occupation. You are also allowed to work during ordinary working hours.
 
For each month, your benefit form must indicate the number of hours you worked in your business. Such hours will result in a deduction of your payments. For example, if you have spent 50 hours in your business, your hours with benefits will be 160.33 – 50 = 110.33 hours (assuming there are no deductions for paid work, holiday, etc.).
 
The right to run a business while receiving benefits will be limited to 30 weeks within a period of 104 weeks. Please note that weeks in which you have part-time work while you receive benefits will also count towards the 30 weeks. 
 
All weeks in months in which you receive benefits will count towards the 30 weeks, whether or not you have worked in your business in all the weeks. Learn more how the 30 weeks are used on this page in the section "Weeks
counting towards your 30-week benefit rights".
 
You should consider the advantages of changing your business into a spare-time activity og wealth management. Read more in the blue box below.
 
 

Consider starting your business as a spare-time activity

You might consider the alternative of starting your business as a spare-time activity. This is possible if you expect a turnover of less than 50,000 kr. over 12 months, and thus do not need to have a CVR number and register for VAT (moms).  If you already have a CVR number, you must unsubscribe.
  • Pros: The period in which you can run a spare-time activity will not be limited to 30 weeks, but may carry on as long as you wish. Furthermore, stopping a spare-time activity does not count in relation to the rule limiting the number of close-downs to one. Learn more on this page in the section "Your right to start a new business will be limited".
  • Cons: Your income cannot be used to earn benefit rights.
  • No change: We will still make deductions in your benefit payments for the hours you spend on the spare-time activity.

Consider running your own business as wealth management

You might consider having your business as wealth management (that is a real estate business, trading in own securities, passive ownership or if you have leased your business) if you have very limited work in the company. Very limited means work for a maximum of 5 hours a month. 
  • Pros: The period will not be limited to 30 weeks, but may carry on as long as you wish. Furthermore, stopping wealth management does not count in relation to the rule limiting the number of close-downs to one. Learn more on this page in the section "Your right to start a new business will be limited". The hours spent on your spare-time activity will not be deducted in your benefit payment.
  • Cons: Your income cannot be used to earn benefits rights.