Allowances Recovery in Rotterdam

Allowances Recovery in Rotterdam

In Rotterdam, the Tax Authorities frequently recover overpaid allowances, such as rent allowance for the high Rotterdam rents, healthcare allowance or childcare allowance. This happens when it later emerges that you no longer meet the conditions or received too much. As a Rotterdam resident, it is essential to understand this process so you can respond promptly through local support services like the Legal Aid Office Rotterdam.

What does allowances recovery mean for Rotterdam residents?

Allowances recovery starts when the Tax Authorities find that you received more allowance than entitled. These benefits support low-income households in Rotterdam, with rent allowance for expensive homes in areas like Charlois or Feijenoord, healthcare allowance for health insurance premiums and childcare allowance for working parents in the port city. An income rise from a new port job, falling rent or an unreported partner can trigger recovery, including interest.

Unlike child benefit administered by the SVB, which is rarely recovered, the childcare benefits scandal (2019) caused widespread hardship. Stricter controls and better protections now apply for Rotterdam families.

Legal basis

The Allowances Act (Tow), Article 31, governs allowances recovery within five years of the reference year. In cases of fraud, up to 12 years. The General Administrative Law Act (Awb) regulates the procedure, including objection (Art. 6:3 Awb) and appeal to the District Court of Rotterdam.

EU rules and the Childcare Allowance Compensation Act (2021) provide additional safeguards relevant to affected Rotterdam residents.

When does the Tax Authorities recover allowances in Rotterdam?

Recovery arises from:

• Unreported changes in income, assets, rent or household situation in Rotterdam.
• Assets exceeding the limit (e.g. €7,571 for singles in 2024).
• Fraud or incorrect claims.
• Partner failing to meet requirements.

Example: You receive €350 rent allowance for a flat in Rotterdam-South. Your income rises from €28,000 to €38,000 due to overtime. Without reporting it, you must repay €3,000 over two years.

Differences per allowance

Your rights and obligations as a Rotterdam resident

Rights:

• Written decision within 8 weeks.
• Objection within 6 weeks (Awb art. 6:7).
• Preliminary relief from District Court of Rotterdam in urgent financial need.
• Remedy under the benefits scandal scheme.

Obligations:

1. Report changes immediately via My Allowances.
2. Request installment plan if facing payment issues.
3. Include evidence with your objection.

Example: Received a letter demanding €5,500 childcare allowance repayment? Amounts over €5,000 require a hearing.

The procedure in Rotterdam step by step

1. Review: After your income tax return.
2. Letter: Provisional assessment or decision.
3. Objection: File within 6 weeks.
4. Appeal: After rejection, to District Court of Rotterdam (tax division).
5. Enforcement: Enforcement order or attachment for non-payment.

In 2023, €1.2 billion was recovered, but 20% less after successful objections – advantageous for Rotterdam residents.

Practical examples from Rotterdam

Example 1: Ms. De Vries from Rotterdam-West receives healthcare allowance. An inheritance raises her savings to €12,000. Unreported: €1,500 recovery for 2022-2023. Objection with bank statements waives €700.

Example 2: Mr. Khan from Rotterdam-East claims childcare allowance. Hours mismatch due to flexible work. Fraud allegation: €9,000 recovery. With Legal Aid Office Rotterdam assistance, he prevails at District Court of Rotterdam.

Frequently asked questions for Rotterdam residents

Tips for Rotterdam residents

Avoid allowances recovery:

• Report via the Allowances app.
• Use the trial calculator on toeslagen.nl.
• Consult Legal Aid Office Rotterdam if unsure.
• Seek debt assistance from Municipality of Rotterdam.