Are you a freelance translator and do you want to avoid false self-employment? First, understand what it entails. False self-employment occurs when your work situation is more like that of an employee than that of a real freelancer.
Make clear agreements with clients. A contract that emphasizes your independence helps prevent misunderstandings. Meet the criteria set by the DBA law to be recognized as an independent entrepreneur.
Also know how to test your situation. Analyze your assignments and watch out for signs that point to a relationship of authority. This may involve control over working hours, how you perform your work or the need to personally carry out your assignments.
Preventing false self-employment among self-employed translators
Understanding what false self-employment entails is essential to avoiding it. False self-employment occurs when you work as a freelance translator but display the characteristics of an employee. This can have consequences for your tax position and lead to fines or additional assessments. Below are some crucial steps to avoid this.
- Ensure a clear agreement with clients: Make clear agreements about your role as an external expert, the term and the rate.
- Prove your entrepreneurship: Show that you have multiple clients and are actively recruiting, which indicates independence.
- Be responsible for your own tools: As a translator, you must use your own software and other resources necessary for your work.
- Stay in control of your work: Carry out your translation assignments independently, without direct supervision from the client.
Recognize the importance of diversity in your clients
Another sign that freelance translators are truly self-employed is a wide range of clients.
- Various sources of income: Don't limit yourself to one big client. Balance your portfolio with various smaller and larger projects.
- Active market approach: Demonstrate that you invest in marketing and acquisition to win new orders.
- Network management: Build a strong network within and outside the translation industry.
- Reputation and visibility: Make sure you are visible online and offline as an independent professional, for example by having a professional website.
Ensuring administrative independence
Own administration is an indication of entrepreneurship. Ensure professional invoicing, solid bookkeeping and independent tax returns.
Optimal use of model agreements
Use model agreements approved by the Tax Authorities. This gives both you and your client certainty about the employment relationship.
Claim your complete zzp website package
In this digital age, a professional online presence is essential. With a complete self-employed website package With Flexamedia you strengthen your independent position and reduce the risk of false self-employment. This shows that you run a serious company. The package includes hosting, a domain name, e-mail, and the possibility to adjust texts and photos yourself. More importantly, your website will be 100% mobile-friendly and delivered within two weeks.
Strengthen your independence with a professional appearance
By adopting an entrepreneurial attitude and skills you strengthen your independent status.
- Invest in continuing education: Continue to develop yourself by taking relevant courses and training.
- Professionalism in all communications: Reflect your expertise in all corporate communications, including social media.
- Take out business liability insurance: Demonstrate that you manage the risks of your company professionally.
- Regular update of your portfolio: Showcase your recent work and skills to potential clients.
Follow these steps to ensure your independence and distinguish yourself from bogus self-employment in the translation industry.
Frequently asked questions
How do you recognize false self-employment among freelance translators and prevent it?
As a freelance translator, you first need to know what false self-employment entails. It means that you formally work as a self-employed person, but in practice you resemble an employee due to a lack of entrepreneurial freedom, such as not being able to determine your own working hours. Prevent this by having clear contracts with clients in which your independence and responsibilities are laid down. Also ensure that you have multiple clients and make your independence visible by, for example, using your own tools or software.
What are concrete steps to avoid false self-employment as a translator?
Take matters into your own hands and ensure that you are truly an entrepreneur. You can do this by actively seeking out diverse clients and consistently rejecting (quasi-)employment. Work with clear assignment agreements that stipulate your autonomy. Continue to develop yourself and invest in your entrepreneurship by taking courses and joining forces with other independent translators, for example through professional associations.
Can a VAR declaration prevent false self-employment among translators?
A VAR declaration (Declaration of Employment Relationship) was a means of providing certainty about the tax liability of income. Although this is no longer issued since the DBA Act, it is good to know that a Model Agreement from the DBA Act can fulfil a similar function. This agreement between client and self-employed person guarantees that no payroll taxes have to be paid, provided that the work is carried out in accordance with the agreement. Ask a lawyer for advice to tailor such an agreement.