19 November 2024 (last updated: 25 November 2024)
Bogus self-employment β what will change for entrepreneurs in 2025?
What is bogus self-employment?
Bogus self-employment (schijnzelfstandigheid) is a situation in which a person is formally registered as self-employed but in practice performs work under conditions similar to those of a regular employee β without an employment contract. Such a person is considered self-employed, yet their status differs little from that of a salaried worker.
From 1 January 2025, the Belastingdienst (Dutch Tax Authority) will begin full enforcement of the regulations concerning schijnzelfstandigheid (bogus self-employment). These regulations were enacted in 2016 as the Wet DBA (Wet Deregulering Beoordeling Arbeidsrelaties), but encountered implementation difficulties and their enforcement was suspended for a period of time.
How to avoid bogus self-employment?
To avoid being classified as bogus self-employed, entrepreneurs β often referred to as ZZP'ers (self-employed professionals) β should observe the following principles:
- Working with multiple clients β Providing services to various clients demonstrates that you are not financially dependent on a single employer
- Using your own tools and materials β Working with your own resources shows greater professional independence
- Making your own decisions β As an entrepreneur you should have control over how your work is organised, including the place, time and methods of carrying out assignments
- Financial risk β A self-employed person bears responsibility for the results of their work and assumes financial risk
Consequences for companies
If the Belastingdienst determines that a company is working with a self-employed person under conditions of bogus self-employment, the company may be fined and held liable for outstanding social insurance contributions going back up to 5 years (however, penalties will only apply to the period after 1 January 2025).
For the self-employed person, the consequences include:
- Income correction
- Loss of tax deductions (including the entrepreneur's deduction and SME exemption)
- Obligation to pay back taxes
- The client may terminate the collaboration
It is worth noting that during the first year of the new regulations a transitional period is foreseen β companies will not be penalised if they can demonstrate that they are taking steps to resolve any bogus self-employment issues.
Summary
The new regulations aim to improve the self-employment system and prevent abuse. To avoid penalties, it is important to comply with the rules on service contracts, ensure flexibility in working arrangements and maintain proper documentation. Consulting a tax adviser is recommended.