Are you considering becoming self-employed? Be very mindful of the rules regarding bogus self-employment. The Dutch Tax and Customs Administration keeps a close eye on whether you're actually under a disguised employment contract.
Want to know how to remain a true freelancer and not an employee? It all starts with understanding the DBA Act and the difference between self-employment and employment. Contracts, autonomy, and the balance with clients – all important matters!
Don't worry, we'll help you navigate the regulations and guidelines. This guide explains how to stay safe within the guidelines, with tips to prevent bogus self-employment. This way, you'll stay ahead of the tax authorities and ensure a stable self-employed status.
Definition of false self-employment
As a freelance professional, you undoubtedly want clarity about your status with the Dutch Tax and Customs Administration. False self-employment occurs when, in practice, there is an employment relationship, but you are officially registered as a self-employed person (ZZP'er). Crucial aspects such as authority, employment status, and the performance of personal work play a role in this.
History and current developments
Policy regarding self-employment has taken various forms. After the abolition of the Declaration of Employment Relationship (VAR), the DBA Act was introduced to combat bogus self-employment. However, this law is still under discussion, and clear regulations are essential to clarify your position as a self-employed person.
Recognize the signs of false self-employment
- Authority: Do you have a client who manages your work in detail as if you were an employee? This could indicate false self-employment.
- Mutual substitutability: Can't you simply be replaced by someone else without the client's permission? Note: this is a sign.
- Free working hours: Is your work schedule largely determined by the client? This indicates a possible employment relationship.
- Payment method: Fixed payments, such as a monthly salary, may indicate a disguised employment relationship.
How do you demonstrate independence?
Establishing your independence is all about demonstrating that you don't meet the above requirements. Use a model agreement for this and ensure your working methods align with its provisions. This will help you clearly identify yourself as a self-employed professional.
Solutions to avoid false self-employment
- Ensure clear contracts: Use approved model agreements and ensure that practice matches the paperwork.
- Document independent decisions: Save communications that demonstrate that you make independent choices in performing work.
- Be clear about your position: Communicate clearly to clients about your independence and make agreements that underline this.
Your online business card as a self-employed person
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Frequently asked questions about bogus self-employment
Do you have any questions? Here are some frequently asked questions about bogus self-employment:
- What does the Tax Authorities do if they suspect bogus self-employment? The Tax Authorities can investigate your work situation and, if necessary, make adjustments to your tax assessments.
- Can I, as a self-employed person, initiate an investigation myself? Yes, you can proactively contact the Tax Authorities to have your working relationship assessed to gain certainty.
Frequently asked questions
What is bogus self-employment according to the Tax Authorities?
False self-employment occurs when you officially work as a self-employed person, but in practice, it more closely resembles an employment relationship. The Dutch Tax and Customs Administration considers factors such as authority, salary, and freedom in performing your work. If you are managed by a client as if you were an employee, the Dutch Tax and Customs Administration may conclude that there is a disguised employment relationship.
This has consequences for both you and the client regarding taxes and premiums. It's therefore crucial to organize your work independently and demonstrate independence to avoid false self-employment.
How can I prove that I am not a bogus self-employed person?
To prove you're not a bogus self-employed worker, you can use a model agreement approved by the Tax and Customs Administration. This agreement specifies the working relationship and the terms and conditions under which you work. It's also important to have a portfolio of clients so you're not dependent on just one.
Also, provide proof of your independence, such as your own tools, business liability insurance, and a distinct business identity. The stronger your entrepreneurial spirit, the more you can demonstrate that there's no false self-employment.
What are the consequences of false self-employment?
The consequences of bogus self-employment can be significant. Not only can you, as a self-employed person, face back payments of taxes and social security contributions, but the client can also be held liable for failing to pay employee contributions. This can lead to fines and additional assessments from the tax authorities.
For you as a self-employed person, this can lead to the loss of business benefits such as the self-employed deduction. Furthermore, you risk your self-employed status and thus the ability to serve multiple clients. Due diligence and a clear employment contract are essential to avoid these risks.