1,225-Hour Criterion: How to Track It Correctly
As a freelancer, you may be entitled to the self-employed tax deduction — but only if you meet the hours criterion. The rule sounds simple: work at least 1,225 hours per year on your business. Yet many freelancers miss out, not because they work too little, but because their records don't hold up. This article shows you how the criterion works and how to prove you meet it — so you're not caught off guard at tax time.
This article is not legal or tax advice — consult a tax adviser for guidance on your specific situation.
What Is the 1,225-Hour Criterion?
The hours criterion is set out in the Dutch Income Tax Act 2001 (Art. 3.6). It is the fiscal threshold for several tax benefits, the most significant being the self-employed deduction (zelfstandigenaftrek). The limit is 1,225 hours per calendar year — unchanged for both 2025 and 2026.
A second condition catches many people out: you must spend at least 50% of your total working time on your own business. If you also work as an employee, those hours count towards your total. Working 20 hours a week employed and 20 hours freelance puts you exactly on the boundary. Log fewer hours as a freelancer and you'll fall short — even if you exceed 1,225 hours overall.
The criterion is not pro-rated. Start on 1 July? You still need the full 1,225 hours in that half-year — not 612. With roughly 26 weeks remaining, that works out to around 47 hours per week. Demanding, but achievable with proper organisation.
What Counts — and What Doesn't?
Not every working minute qualifies. The Belastingdienst counts hours that are directly connected to your business — which is broader than just billable hours.
Type of work Counts? Client delivery work ✅ Yes Business development & quotes ✅ Yes Administration & invoicing ✅ Yes Professional training & reading ✅ Yes (if work-related) Travel to and from clients ✅ Yes Private travel & leisure ❌ No Employed work ❌ No (for this criterion)
A project meeting, a call with a potential client, and updating your accounts all count — as long as you can demonstrate it.
Example: IT Consultant, Mid-Year Start
You have three active clients and are pursuing a fourth project. Billable hours run around 25 per week — well below the 47 a mid-year starter needs. But you also spend 5 hours on proposals, 3 on admin, and 2 on a cybersecurity course. That brings your weekly total to 35 hours. Still short.
This is the core problem: tracking only billable hours means you miss a significant portion of your actual effort. Solid time tracking captures all business hours — not just invoiced ones.
PrikKlokPlus makes this straightforward with a calendar view where you log hours by category: client work, business development, training, administration. See at a glance exactly where you stand. Find out how it works in the Feature spotlight: Hour logging & calendar view.
Start tracking with PrikKlokPlus today — free, no commitment.
How to Keep Records That Satisfy a Tax Audit
The Belastingdienst can request your time records during an inspection. A spreadsheet filled in retrospectively convinces no one. What works is a continuous, detailed time log with dates, descriptions, and durations — recorded in real time.
A common mistake is waiting until year-end and back-calculating. This is inaccurate and significantly increases the risk of your records being rejected.
Practical rules of thumb:
- Log daily, not weekly or monthly
- Write descriptions that clearly show the hours are business-related
- Export a monthly overview as a backup
- Check your progress at mid-year
For freelancers who want to link invoicing to their hours, see Time tracking as a freelancer: 5 tips for accurate invoicing.
Wondering whether you're required to keep time records at all? Is time tracking legally required in the Netherlands? explains what the rules say.
Deciding between a spreadsheet and dedicated software? Read Excel vs. time tracking software: which is right for you?.
Conclusion
The 1,225-hour criterion isn't a bureaucratic formality — it's the gateway to tax savings that can add up significantly year after year. The risk isn't in the work itself, but in the records. Start early, log everything, and keep your time records audit-ready. That puts you in a strong position if the tax authority ever asks.
This article is not legal or tax advice — consult a tax adviser for guidance on your specific situation.
Frequently Asked Questions
Does travel time count towards the hours criterion? Travel to and from clients counts as a business hour. Private travel does not.
I'm also employed. How does the 50% rule work? You add all your working hours together: employment plus freelance. At least half of that total must go to your own business. If you work 20 hours employed and 15 hours freelance, you don't meet the threshold — even if you exceed 1,225 hours in total.
What happens if I don't meet the criterion? You lose the right to the self-employed deduction for that year and pay more tax. You don't automatically lose your status as a self-employed person for tax purposes. Consult a tax adviser to understand the implications for your situation.
Do I need to prove my hours if there's no audit? You don't need to submit them proactively, but you are required to maintain proper records. If an audit happens — even years later — you must be able to demonstrate compliance.
Do hours spent on a prospect that doesn't convert still count? Business development meetings, proposals, and preparatory work all count, even if no contract follows.
With PrikKlokPlus you log all business hours — billable and non-billable — and export reports that hold up under scrutiny.