When are you independent?

In this article we discuss whether you can be classified as self-employed by the tax authorities and how you can become one. If you create work or otherwise work in the cultural sector, it's nice if you do so in a proper and decent way. You want to abide by the rules and they depend in part on whether or not you are classified as self-employed by the Tax Office. This relates, for example, to the way you do your administration and to what extent you have to take VAT into account. This article was written with thanks to Floor Ruyters, employed by De Nieuwe Oost.

When are you independent?

The most important characteristic of self-employment is that you decide how you do your work and how you set up your organization. The Tax Office uses the following points, among others, to test your self-employment:

• The degree to which you control how you perform your work.
• Whether you work for multiple clients.
• The extent to which you set your own rates and prices.
• The fact that you own and use your own materials, tools or equipment.
• Whether you can send a substitute if you are sick or too busy.
• Whether you send the invoice directly to the client.
• The fact that you don't get paid when you're sick.

By the way, you do not always have to meet all aspects because some things do not relate to the profession in which you work.

Registering as self-employed with the Chamber of Commerce

If you want to start a business, you are required to register it with the Chamber of Commerce (KVK). This puts you in the trade register, which contains information about all companies operating in the Netherlands. You can look up what kind of company you are dealing with and whether there is a possible bankruptcy. Make sure you register your company in the period from one week before you start to one week after you start.

How does it work?

To register your business with the Chamber of Commerce, you can follow the following steps:

• On the Chamber of Commerce website, you will find a form to register your business.
• Choose "Register New Company.
• Make the choice of legal form you want to start.
• Fill out the digital registration form as completely as possible.
• Make an appointment at the Chamber of Commerce branch near you.

Make sure you always bring your proof of identity with you to the appointment at the Chamber of Commerce. On the spot, the registration will be gone through and if everything is correct, your company can be registered.

What happens after enrollment?

When you are registered, this is passed on to the tax authorities by the Chamber of Commerce. You will then receive a VAT number which you will include on all your invoices. After your registration the Chamber of Commerce will register you with the tax authorities. You will also receive various documents confirming your registration. Keep them safe. Then you can start your business right away.

Hours criterion

The conditions below are important if you want to meet the hour criterion:

• You devote 1,225 or more hours to your business in a calendar year. You must also meet this condition if you start or stop your business during the year.
• You spend more time on your business than on other work. For example, if you are also employed. Were you not an entrepreneur for 1 or more years in the last 5 years? Then this condition does not apply.

Which hours count

All the hours you spend on your business count toward the criterion of being self-employed. Thus, in addition to the executive work for a project or initiative, you can also track travel time, time for acquisition, time for training, and time to do your administration. However, it is important that you keep good records of everything, for example in a diary or a timesheet because the tax authorities may ask for them.

Which hours do not count

If you are sick or on vacation then of course those hours do not count. Similarly, if you are available for work but not doing anything then you cannot report that. Suppose you answer emails in the evening or make a phone call on the weekend, then of course those hours do count. If you are pregnant then in 16 weeks you can also report the hours you cannot work now as hours worked.

Being more independent

There are several ways to demonstrate that you are self-employed. We have listed some of them for you.

• Always agree with clients that you will decide how to do the work. Record those arrangements.
• Make sure you have multiple clients so that you are not dependent on one or two clients.
• Always provide a quote with an explanation of your rate.
• Keep track of which jobs you have turned down because the rate was too low.
• Also, invest in your own gear that you use on assignments.
• Make arrangements with your principals for replacements in case of illness or crowding.
• As much as possible, enter into agreements with your clients yourself. And send them invoices directly.

Check if you are self-employed

The Internal Revenue Service has devised a way for people who doubt whether they are really self-employed and entrepreneurial to quickly check this. You can find it here.

Entrepreneurial risk

What is characteristic of entrepreneurship is that you can run certain risks. Of course, this depends on the type of work you do and what industry you work in. Either way, you always take some kind of financial risk. By the way, you don't have to know all the risks below to be an entrepreneur.

• Determine whether you are liable for your company's debts.
• Are you at risk of clients or customers not paying?
• Do you have stock that could age or spoil?
• Are you at financial risk if you don't do your job well?
• Have you invested in your business?

As a zzp'er also employed?

As a self-employed person, you are agile. For example, you can combine your own business with a job. The extra income from employment gives you more air, so you can keep doing business. This can affect your sales tax or payroll taxes, for example. Read what to look out for on this page from the KVK.

Disclaimer

For this article, we had input from Floor Ruyters, who works for Production House De Nieuwe Oost.

If, from your expertise, you yourself have knowledge that would fit this topic, or if you see opportunities to improve this text, we look forward to receiving your message at info@cultuuracademy.nl.