What is false self-employment and how do you prevent it?

Sham self-employment is an issue that has concerned the government for years. But what exactly does it entail? It can be explained very simply: false self-employment means that you work as a self-employed person without personnel (zzp'er), but should actually be employed according to the tax authorities. It looks like you are an entrepreneur, but in fact you are in disguised employment.

As a true zzp'er, you decide how, where and when you work. You have the freedom to organise your work your way and you can do the work yourself or even outsource it. But if you do not have that freedom in practice and your work looks almost the same as that of a permanent employee, you end up in the grey area of false self-employment. And that is where the shoe pinches.

Why is false self-employment a problem?

For the tax authorities, it is simple. If you are really an entrepreneur, you get certain tax benefits such as the self-employed deduction. Clients also do not have to pay wage tax or employee insurance contributions. This makes a considerable difference in costs. But if someone is mistakenly seen as an entrepreneur, the tax authorities cannot collect those taxes, leading to financial and legal problems. This is why the government wants to prevent people from working wrongly as entrepreneurs and companies from profiting from this.

What does the Inland Revenue say about salaried employment?

According to the Tax Office, you are salaried if three conditions are met:

1. You get paid for your work.

2. Your employer has authority over you and may give binding instructions.

3. You must do the work personally (you cannot have someone else do it for you).

From 2024, something has changed: the third condition, that you have to perform work personally, is given less weight by judges. The focus is now mainly on the first two points: do you get paid and is there a relationship of authority? If you can exclude one of those two, there is usually no employment contract.

How will the position of self-employed workers become clearer?

The current rules around false self-employment are not always clear. For both self-employed persons and clients, it is often difficult to determine whether an assignment really falls under entrepreneurship. To make this clearer, the government is working on new legislation. The aim is that soon you will know better whether you can take on a job as a self-employed person and whether a client can hire you on that basis. When exactly these new rules will take effect is not yet known, but it is clear that the government wants to speed things up.

What will happen from 2025?

Perhaps the most important thing to know: from 1 January 2025, the tax authorities will start enforcing stricter enforcement on false self-employment. If you are self-employed but are actually an employee in practice, this can have unpleasant consequences. Clients who hire false self-employed workers risk fines and additional taxes. This can add up considerably.

What does this mean for you? As a self-employed person, you have to be able to prove that you are really an entrepreneur. That means you have to be able to show that you are sufficiently independent in the way you work. The same applies to clients: as a company, you have to be able to make it clear that working with a self-employed person does not amount to employment. This requires clear agreements and often written records.

Want to know more about the changes?

Do you have an assignment as a self-employed person, or are you hiring a self-employed person? If so, it is smart to read up carefully and take a critical look at your collaboration. With stricter enforcement on the horizon, it is important that everything is right so that you can continue working with peace of mind.

Bogus self-employment is a topic that is gaining increasing attention, and for good reason. It goes to the heart of what it means to be self-employed. By staying abreast of the rules and looking at your collaborations carefully, you can avoid problems and continue to do your job with confidence. So, take a critical look at your situation and prepare well for the coming changes!

How do you tackle false self-employment?

Bogus self-employment is a hot topic, and rightly so. It affects both self-employed people and clients directly in their wallets and ways of working. But how can you eliminate false self-employment? There are several ways to tackle it, with the aim of making the relationship between self-employed workers and clients clear and fair. For the self-employed, it is of course best if they can keep their position as self-employed.

Ways to end false self-employment

Ending the collaboration is the most drastic option. If the hiring agreement is dissolved, the employment relationship ends and with it the discussion about self-employment. But of course, this is not ideal for either party. Becoming an employee of the client is also an option. In some cases, self-employed workers choose to become employees of the client they already work for. This can offer security, but also means giving up your independence.

Looking for another salaried job is what some self-employed people consider. A self-employed person may choose to go into paid employment with another company, such as through secondment. This ends the self-employment completely. You can also prove that there is no salaried employment. This is the preferred option for many self-employed people. Prove that you are truly self-employed and that the assignment meets the requirements for self-employment. There is more involved here, but it is absolutely feasible.

The problem of false self-employment is not new

For years, the government has been trying to eradicate this phenomenon because it brings them less tax revenue. Organisations such as ZZP Nederland support this approach, because false self-employment puts real entrepreneurs in a bad light.

From 2025, the Deregulation of Assessment of Employment Relationships Act (DBA Act) will again be more strictly enforced. How exactly this will work out in practice remains to be seen, but one thing is certain: the Tax Authorities will monitor collaborations between freelancers and clients more closely.

Tips for principals

It is also important for clients to prevent false self-employment. You would rather avoid the fines and additional taxes that can be imposed from 2025. Treat freelancers as independent professionals. Only specify goals and results, but let them decide how to achieve them.

Limit your role. Do not give direct direction or control over the self-employed person's work. Also avoid long-term assignments. Make sure self-employed people do not work too long or exclusively for your organisation. After all, this can look like employment.

And always make sure you have a clear contract. In it, you record that the contractor is self-employed and what agreements apply.