Want to avoid fines for bogus self-employment? Then it's essential to be aware of the rules. First, determine whether you're truly self-employed. This means you'll have multiple clients and make independent decisions about your work.
Also, ensure a clear contract confirming your independence. Know what a model agreement should include to avoid misunderstandings with the tax authorities. This way, you'll always remain transparent about your employment relationship.
Finally, keep evaluating constantly. Gather evidence of your self-employment and ensure your records are in order. This is not only helpful in case of questions from the tax authorities but also strengthens your position as a true self-employed professional.
What is false self-employment?
False self-employment is a situation in which you formally work as a self-employed person, but the actual employment relationship is more similar to that of an employee. This can lead to conflicts with the tax authorities and fines. It is important to recognize and maintain the characteristics of a healthy client-contractor relationship.
Characteristics of an independent contractor
- Freedom in work executionAs a self-employed person, you decide how you carry out the work.
- No relationship of authority: There is no manager who directly directs your work.
- Multiple clientsSelf-employed people often have multiple clients, which contributes to their independence.
- Independent business operationsYou advertise your services, have your own tools or software, and bear entrepreneurial risk.
Record contractual agreements
It's essential to make clear agreements and record them in a contract. These agreements must comply with the DBA Act guidelines to minimize misunderstandings and the risk of false self-employment.
How do you guarantee your independence?
- Use a model agreement: Use model agreements approved by the Tax Authorities.
- Provide a clear assignment: Make sure your assignment is clearly described and does not contain any employment characteristics.
- Avoid fixed working hours and place: Flexibility in working hours and work location underlines your independence.
- Be transparentCommunicate openly about your independence with your client and find the right balance together.
Reducing the risks of false self-employment
By working together with professionals who understand entrepreneurship, such as Flexamedia, create a professional image and reduce the risk of false self-employment. Claim our complete ZZP website package and ensure you're easily found and recognizable as an independent entrepreneur.
Monitoring and evaluation of working relationship
Conduct regular evaluations of your collaboration with your client to ensure there is no disguised employment relationship. Adjust working agreements where necessary.
Preventive actions against bogus self-employment
- Continuous learning and training: Continue to develop yourself and demonstrate that you are investing in your profession as an independent professional.
- Actively work on your network: Create a strong network and show that you acquire assignments yourself.
- Manage your administration: Ensure accurate administration with invoices, time tracking and business liability insurance.
- Visibility as an entrepreneur: Build a personal brand and use marketing to position yourself as an entrepreneur.
As a freelancer, make sure you present yourself professionally and reduce the risk of false self-employment. Having your own professional website is a huge help. complete ZZP website package from Flexamedia You're guaranteed a strong online presence at an affordable price. This way, you stay ahead of the bogus self-employment trap and can continue your business undisturbed.
Frequently asked questions
How can I avoid false self-employment as a freelancer?
To avoid false self-employment, it's crucial to properly document your working relationships. Draw up a clear agreement emphasizing your independence, and ensure it reflects your actual practice. Consider aspects such as the right to determine your own working hours and the ability to refuse or subcontract assignments.
Additionally, continue to expand your knowledge and network and regularly change clients. This prevents you from becoming overly dependent on a single client, which could indicate an employment contract rather than self-employment.
What are the risks of a VAR declaration for self-employed persons?
The Declaration of Employment Relationship (VAR) has been replaced by the DBA Act, but the importance of correctly classifying your employment relationship remains. Without a VAR, you must demonstrate that there is no employment relationship. You can do this by using model agreements approved by the Tax and Customs Administration or by having your own agreement reviewed.
Without a clear agreement, you risk a fine or additional assessment if it turns out to be a case of bogus self-employment. This can also lead to legal uncertainty about your self-employed status and potential problems with insurance and pension plans.
How do I ensure a clear demarcation between self-employment and employment?
Understand and implement the criteria the Dutch Tax and Customs Administration uses to distinguish between employees and self-employed individuals. Ensure you don't work under the direct supervision or guidance of the client, use your own tools and materials, and invoice based on services or projects performed rather than a fixed hourly rate.
A professional image also helps: your own business cards, a professional website, and registration with the Chamber of Commerce are indicators of self-employment. A clear distinction reduces the risk of fines for bogus self-employment.