Those deriving income from other activities (row) may deduct the costs attributable to this income. However, these costs must be sufficiently business-related to the income.
Income from a personal care budget
The parent of a disabled son provided care for him. The son received a personal budget (pgb) for this care. The pgb may also be used, amongst other things, to cover the costs of the disabled son’s day care.
The carer must declare the income from the personal care budget in their income tax return as income from other work (row).
Costs
As mentioned, there is a right to deduct expenses. However, this applies only to those expenses that are sufficiently business-related to the income.
The Zeeland-West Brabant District Court recently ruled that this does not apply to the costs of airfares, holidays, accommodation, telephone and internet, a car, taxes, insurance and living expenses. According to the court, the personal budget is not intended to cover these material expenses. Consequently, these costs are not sufficiently related to the work carried out by the parent.