Sham self-employment: How to contain the risks

What is Sham self-employment?

Sham self-employment occurs when a self-employed person functions more like an employee in practice. Think of situations where the self-employed person mainly works for your company, does not set his own rates or works strictly according to your schedule. Does this sound familiar? If so, it could cause problems during an audit by the tax authorities.

The solution: working with AAme

We offer clear contracts and ensure that the cooperation fully complies with the conditions of a zzp construction. This allows you to avoid unexpected complications afterwards.

What will change?

From 1 January 2025, the tax authorities will intensify controls on the self-employment of self-employed people. This means that companies must be extra alert when employing self-employed workers. With our expertise, we ensure that your company complies with all laws and regulations, minimising risks.

Risks of false self-employment

If the Inland Revenue determines that there is disguised employment, this can have both tax and employment law consequences:

1. Tax consequences: You will be obliged to pay payroll tax and social security contributions retroactively, which may result in additional taxes, penalties and interest.
2. Labour law consequences: You must comply with employment law obligations, such as continued payment during illness, right to holidays, and dismissal protection for the self-employed worker.
3. Income tax zzp’er: When a zzp’er is considered an employee, the income falls under ‘wages from employment’ instead of ‘profit from business.’ This means that the self-employed person cannot make use of entrepreneur facilities such as the investment deduction, entrepreneur deduction and SME profit exemption. Expenses that would otherwise be deductible in business profit are also not deductible in this case. In exceptional situations, wages can be included in business profits, but this requires a close relationship between the work and the dominance of the business over the employment.
4. Sales tax (VAT) implications: Disguised employment can also have sales tax implications. If a self-employed person has charged VAT while in an employment relationship, the VAT remains due. This applies even if it has been wrongly charged. The situation becomes even more complex if platforms are involved in the employment relationship, where specific rules may apply.

Assessment by the tax authorities

The tax authorities looks at three criteria to assess whether an employment relationship exists:

1. Authority relationship: Does the self-employed person receive instructions and direction like an employee?
2. Personal labour: Is the self-employed person obliged to perform the work himself?
3. Remuneration: Does the self-employed person receive remuneration comparable to an employee?
   
   If these criteria are met, the self-employed person is considered an employee.

How we prevent false self-employment: 7 steps

1. Mapping: We make an overview of all persons working within your organisation through an assignment.
2. Contract check: We check the contracts and make sure they match the zzp construction and the current regulations.
3. Job analysis: We assess whether the work is temporary and project-based, and whether the self-employed person operates independently with their own insurance.
4. Rate assessment: We ensure the rates are market-based and appropriate for self-employed people.
5. Management control: The less direct control, the better the self-employed construction holds up.
6. Entrepreneurship test: We always request a KVK extract and the professional liability insurance policy.
7. Implementing adjustments: Are there points for improvement? Then we immediately make adjustments to contracts and working arrangements.

What does this mean concretely for you?

By working with AAme, you ensure that self-employed people actually work as self-employed persons and that your company complies fully with the regulations. We take care of the legal review and ensure the agreements are fully in line with current legislation. This allows you to focus on running your business without worrying about unexpected costs or fines.

We offer this complete service for a hourly rate excluding VAT.

We are ready for you!

Would you like to know how you can use freelancers optimally without risks? Then get in touch with us. We will gladly guide you through the entire process and ensure that everything is properly taken care of, so that you can fully focus on your business activities.

We would also be happy to inform you about our other AAmezing services: accountancy, tax advice, payroll and legal. 

Any questions? Do not hesitate to contact us!