Gift or deposit being recovered? Mind the deadline.
In principle, you have six weeks to lodge an objection with the Municipal Executive (college van burgemeester en wethouders). After that, the decision becomes final.
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- Your objection goes to the municipality that took the decision, not to the UWV.
- Do you not have the documents yet? Lodge a pro forma objection and add the grounds later.
- The date on the letter counts, not the day you read it.
- No income during the objection? Ask for a provisional measure straight away.
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Written by Ömür Arslan, attorney at Arslan Advocaten, practising social security law. Registered in the Netherlands Bar’s register of practice areas for tenancy law and social security law.
Are you receiving social assistance and getting money from family, cash deposits or a loan? The consequences depend on the source, the purpose, the period and the applicable rules. From 2026, an annual exemption of €1,200 applies to gifts. That does not mean every credit to your account is an exempt gift. If the municipality is reclaiming money, check for each transaction what was actually received and how the decision was calculated.
A bank statement often tells only part of the story. An amount may come from your own savings account, a reimbursement for groceries you paid for in advance or help from a parent. Even so, unclear credits can prompt questions about your income and assets.
A good response therefore starts with putting things in order. Give each disputed transaction a date, an amount and a verifiable explanation. This shows where the municipality may be making a wrong assumption and where additional information is needed.
What has changed for gifts from 2026?
From 2026, the national rules allow you to receive up to €1,200 in gifts per year without having to report them. You keep track yourself of how much you receive. According to the Dutch government, this can include money as well as contributions in kind, for example towards groceries or rent. If you receive more, you report it and the municipality assesses the consequences for your benefit. See the new social assistance rules for 2026 and 2027.
The exemption is an annual amount. It is therefore not an amount you can receive every month from each donor separately. Keep all gifts together in a single overview and keep the records showing the amount or value.
A dispute may concern earlier years. So do not automatically apply the 2026 rules to money received in 2024 or 2025. Have it established for each period which national rules and which municipal policy applied. That can make a big difference to the outcome.
When is a payment a gift?
A gift is a benefit conferred without anything in return, such as paid work. What the parties call a payment is not always decisive. A monthly amount for work done does not automatically become a gift because the transfer description says “present”.
So describe what was actually agreed. Who transferred the money, why did they do so and was anything given in return? A message sent around the time of the payment can provide more clarity than a general statement drawn up only after an investigation.
A payment made directly to your landlord or energy supplier may also be relevant. The money does not first have to reach your own account for there to be support. Include such contributions in your records so that your overview reflects reality.
Gifts above €1,200: report them and ask for an assessment
If the annual total exceeds the exemption, report this in line with your municipality’s instructions. Describe the total amount, when you received it and the purpose. Ask for clarity on how the contribution will be assessed.
Do not assume that every euro above the limit is always treated in the same way. The applicable law, municipal policy and special circumstances may be relevant. A contribution towards a specific, necessary purpose may call for a different assessment than money that is freely available for day-to-day living costs.
Keep the municipality’s response. Reassurance given by telephone can sometimes be difficult to reconstruct later. So briefly confirm a conversation in writing and ask for a decision if the municipality actually adjusts your benefit. Only then is it clear which decision you may need to challenge.
Is every bank deposit income?
No, the source and nature must be investigated. A deposit may relate to money that was already yours, but also to newly received funds. If you deposit cash, expect questions about where it came from.
A bare statement that it is savings may be insufficient if earlier withdrawals or savings are not visible. Conversely, a demonstrable transfer of existing money should not be treated as an entirely new receipt without explanation.
Make a coherent overview. If you withdraw an amount in January and deposit part of it again in March, show both transactions and explain what happened to the money in the meantime. Do not expect a withdrawal in itself to explain every later deposit, particularly where the amounts or timing differ considerably.
Transferring money between your own accounts
Many people use a current account, a savings account and a joint account for a specific purpose. As a result, a transfer can appear as a credit on one statement while a matching debit appears on another.
In such a situation, show both sides. State the account holders, dates and amounts, insofar as this is needed for the assessment. A matching transaction reference makes the link easier to follow. Add a short explanation rather than simply sending a pile of statements.
Also keep looking at your assets as a whole. The fact that a transfer is not new income does not mean that the underlying balance falls outside the assessment of your assets. The question of where the money comes from is different from the question of whether you had it at your disposal.
A reimbursement of costs you paid in advance
Did you do the shopping together and are you being paid back someone else’s share? Then it matters whether the reimbursement corresponds to a specific expense. Keep the proof of payment and, if available, the arrangement on how costs were split.
The same applies to tickets, a shared bill or another payment you made in advance. A neutral, clear description on the transfer can help prevent misunderstandings. It does not replace proof of the original expense, but it does make your records easier to understand.
Regular reimbursements can also raise questions about your actual household or activities. So give a complete picture. An explanation of one payment does not automatically answer a separate question about cohabitation, commercial activities or structural income.
Borrowing money while on social assistance
A loan is not automatically exempt money. The fact that you will have to pay it back later does not necessarily mean that receiving it has no consequences for your social assistance. Factors taken into account include the actual availability of the money, the nature of the funds and the applicable rules.
Record a genuine loan carefully: who is lending what amount, when is it provided, what is it for and what has been agreed about repayment? The records must match what actually happens. A document drawn up afterwards containing only the word “loan” offers no guarantee against deduction or recovery.
Be especially careful if you borrow money to bridge a period without benefit, for example while an application or objection is pending. The assessment may then depend on the specific circumstances and supporting documents. Discuss in advance how you will record the necessity and the arrangements, without assuming that borrowing will always turn out to be neutral.
A debt to family does not automatically reduce your assets
The receipt side and the debt side are separate questions. Even if it is established that you received money from a family member, that does not yet determine how an alleged repayment obligation should be treated in the calculation of your assets.
Conditions apply before debts can be taken into account. These include whether the debt can be proven and whether there is an actual obligation to repay. A non-binding arrangement that you will pay something back at some point when convenient may be assessed differently from a specific, enforceable debt.
So do not have only the name of the agreement assessed. Also look at payment terms, correspondence and repayments actually made. The Dutch government’s explanation of income and assets in social assistance sets out the general principles; applying them to a family debt requires attention to the facts.
Selling belongings and online payments
Money received through a selling platform is not automatically the same as a gift. It may relate to the sale of your own used possessions, but also to trading or work. The frequency, nature and scale of the activities may be relevant.
Where possible, keep a record of which items were sold and how the payment relates to them. A platform payout may bundle several sales, while the municipality sees only one total amount. A breakdown helps explain that difference.
For structural activities, it is wise to discuss the consequences with the municipality in good time. Do not assume that small one-off amounts never count. Conversely, a conclusion about structural income must be based on the specific situation, not merely on the fact that a platform was used.
What must you report to the municipality?
You must provide the relevant information needed to assess your entitlement to social assistance, taking into account statutory exceptions such as the gift exemption from 2026. The Dutch government describes the rights and obligations that come with social assistance.
If you are unsure whether a payment is a gift, income or something else, set out the facts and ask for an explanation. A label you choose yourself offers less protection than a transparent description. Keep a record of what you reported and through which channel.
If you receive a request for information, respond within the stated deadline. If a document is missing, explain why and what you are doing to obtain it. Where necessary, ask for an extension with reasons. Silence can mean that a transaction which could be explained on its merits still becomes part of a larger evidential problem.
How to make a useful overview of transactions
| Receipt | Possible explanation | Documents that clarify the link |
|---|---|---|
| Transfer from your savings account | Moving your own money | Both statements and a matching amount or reference. |
| Money from a parent | Gift or loan, depending on the facts | Correspondence, arrangements, proof of payment and an overview of other gifts. |
| Reimbursement by a friend | Repayment of costs paid in advance | The original expense and the arrangement on each person’s share. |
| Cash deposit | Various sources possible | Withdrawals, proof of sale or other verifiable information about the source. |
| Platform payout | Sale proceeds or income from activities | Transaction breakdown, advertisements and details of the items sold. |
Add a column showing what the municipality has done with each amount. You will then quickly see which items appear twice, which are unexplained and where only part of a receipt is disputed. Use the same sequence number in your enclosures, so that a case handler can easily check your explanation.
Check the period and the calculation
A recovery must be traceable. Ask which receipts have been allocated to which months and on what basis. Check that the same amount has not been counted simultaneously as a gift, income and an unexplained deposit without a clear distinction.
With cash amounts, the timeline in particular can be important. The day on which money is deposited is not necessarily the day on which you originally received it. Support a different date of receipt with existing information, insofar as it is available.
Also check whether the municipality is recovering a full month or a longer period because, in its view, your entitlement can no longer be established. In that case your objection is broader than just the sum total. With additional documents, you may be able to show that the extent of your entitlement can in fact be calculated.
Objecting to deduction or recovery
Read the decision and the objection clause. The deadline is usually six weeks. State clearly which decision you are objecting to and which parts you are challenging: the classification of payments, the period, the calculation or an alleged breach of the duty to provide information.
Request the file, but do not let the deadline pass while you wait for it. A notice of objection lodged in time can later be supplemented in a targeted way. For each point in dispute, make clear what different assessment you are asking for and why the enclosed documents support it.
Recovery, collection and any fine are separate matters. A payment arrangement can give you financial breathing space, but it does not replace an objection against the debt. Where necessary, make clear that you are asking for an arrangement while continuing to dispute the correctness of the decision.
Fictitious example: three credits, three explanations
A person receiving social assistance receives €150 from his mother, €90 from a friend and €400 from another account in the same month. The municipality asks about €640 in credits. Stating only the total says little about the legal assessment.
The €150 turns out to be a birthday present. For that payment, the annual total of gifts and the relevant year must be considered, among other things. The €90 corresponds to a bill he paid in advance. The €400 was transferred from his own savings account, the balance of which already appeared in the information on his assets.
The response deals with each item separately and encloses the appropriate documents. This fictitious example shows why an overview of transactions is useful. It does not mean that every payment with these descriptions will have no consequences: the actual facts and the overall financial picture remain decisive.
Keeping an annual overview of gifts
For the gift exemption, keep one simple overview per calendar year. Record the date, the donor, the nature of the contribution and the amount or substantiated value. Also include a bill paid directly on your behalf if it was intended as a gift to you.
Where possible, link a bank payment, message or bill to each line. For a contribution in kind, it helps to be able to explain how you determined its value. Keep an estimate recognisable as an estimate where an exact amount is not available.
Update the overview regularly. This lets you see sooner when the total exceeds the exemption, so that you can report it in time. The overview also helps you distinguish between genuine gifts and payments with a different source, such as a reimbursement of costs you paid in advance.
Frequently asked questions about social assistance and money received
May my family pay for my groceries?
That may be a gift in kind. Keep track of the value and assess the annual total. From 2026, the national gift exemption of €1,200 per year applies. If you exceed it, you must report this and the municipality will assess the consequences.
Does the €1,200 apply per person who helps me?
No, do not treat it as a separate exemption per donor. Keep all gifts received in a single annual overview. That way you can establish when the total reaches or exceeds the national limit.
Is a loan from my parents always allowed without a deduction?
A loan cannot automatically be disregarded. The actual arrangements, the availability of the money and the applicable rules are important. Record genuine arrangements and have the consequences assessed, particularly for amounts intended for your day-to-day living costs.
Can the municipality look at earlier years again?
An investigation or recovery may concern an earlier period. The municipality must then apply the correct rules for that period and substantiate its decision. The gift rules from 2026 may not be applied to earlier receipts without explanation.
What if I no longer have proof of a cash payment?
Describe honestly what you still remember and look for existing supporting information, such as messages or a statement from the payer. State which information is missing. Do not create backdated documents that wrongly give the impression that they were drawn up at the time.
Can Arslan Advocaten assess my recovery decision?
You can submit your decision, your overview of transactions and the available evidence via our contact page. The page on social assistance fraud and recovery explains the legal support we offer. In your message, state when you received the decision, so that the deadline for objection can also be checked.
Read also
Social assistance recovered because of alleged cohabitation: objecting to the municipality
Social assistance and a house or assets abroad: what can you do about recovery?
UWV is recovering your benefit after its own mistake: do you have to pay?
