Bogus self-employment: what every young entrepreneur needs to know

Jasper Schöpping
Contentmanager Higherlevel

Working flexibly, choosing your own assignments and setting your own rates sounds ideal. But if you don't pay attention, you run the risk of false self-employment. This can have unpleasant consequences, such as fines or additional taxes from the tax authorities. How do you prevent that? And how do you ensure that you are really seen as self-employed?

🔍 What is bogus self-employment?

Bogus self-employment means that you are officially self-employed, but in practice you function as an employee. For example, if you work for one client for a long time, do not have your own way of working, or are obliged to work at fixed hours. The tax authorities are looking at various criteria to determine whether there is employment. You can find it here: When does employment occur?

🙋 How does that work in practice?

An AMA (Ask Me Anything) about bogus self-employment was recently held at the Higherlevel entrepreneurial forum. Expert and experienced entrepreneur Joost Rietveld provided valuable insights.

Joost indicated:

When assessing bogus self-employment, the tax authorities look at several factors. For example, it is important that, as a self-employed person, you have the freedom to accept or refuse assignments, determine your own working hours and working methods, and that you do not have a relationship of authority with your client. The duration of an assignment also plays a role: long-term assignments may be seen as employment, unless it is clear that independence will be maintained. It helps if you work for multiple clients and are not completely dependent on one customer.” 

✅ How do you prevent false self-employment?

As a young entrepreneur or freelancer, do you want to do business safely? Here are three tips:

  • Set your own rates and way of working — This helps you to make it clear that you are an independent entrepreneur.
  • Do a very handy one here check from the national government.
  • Make good agreements and record them — For example, use model agreements from the tax authorities.

Would you like to know more about false self-employment and doing business as a freelancer? Check the MOMMY and other Higher-level topics. For example, do you know everything about Disability Insurance (AOV)? In February, an AMA will be organized on this topic where you can ask an expert anything.

Jasper Schöpping
Contentmanager Higherlevel
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