What is sham self-employment?
Sham self-employment (schijnzelfstandigheid) means a freelancer works in practice like an employee — with fixed hours, instructions from the client and no real entrepreneurial risk — while formally invoicing as self-employed.
Until 2025, the Belastingdienst largely looked the other way. That has changed: inspections are stricter, fines are higher and clients may be required to pay payroll taxes retroactively.
- Additional payroll tax + fine (paid by the client)
- Loss of right to self-employed deduction (zelfstandigenaftrek)
- Clawback of starter's relief and SME profit exemption (MKB)
The checklist: 8 points to verify
No fixed workplace at the client
Always working at the client's office suggests an employment relationship. Make sure you can also work from home or another location.
No fixed working hours imposed
If the client decides when you work (9-5, mandatory presence), there may be a relationship of authority.
You decide how to perform the assignment
The client may define the result, not your working method. You use your own approach.
You work for multiple clients
One client providing 90%+ of your turnover is a risk factor. Diversify.
You bear your own entrepreneurial risk
If work is unsatisfactory, you fix it yourself without extra payment. Warranty and liability are yours.
You have a signed ZZP contract
An assignment agreement with an independence clause proves a business relationship. Without a contract you're vulnerable.
You invoice per project or hourly
A fixed monthly amount resembling a salary increases sham self-employment risk.
You use your own business equipment
Your own laptop, phone and tools show real independence. If everything belongs to the client, that's a red flag.
What is the practical solution?
The most important step is a solid assignment agreement that explicitly states there is no employment relationship. The contract should:
- Confirm the contractor's independence
- State that there is no relationship of authority
- Allow multiple clients
- Set liability correctly
- Be signed by both parties
With SmartWerk you create an assignment agreement in minutes. Your client signs digitally — no printing or scanning.
Authority, substitution and risk: three core questions
The assessment broadly revolves around three questions: must you do the work personally, do you work under the client's authority and do you bear entrepreneurial risk? The more you resemble an employee, the greater the risk of reclassification.
What client and freelancer do together
Both parties benefit from clarity. Put the assignment in an agreement, agree on the result rather than presence, and regularly check whether practice still matches the contract.
If the Tax Authority asks questions
Respond on time, gather your contracts, invoices, quotes and evidence of other clients, and get advice. A well-kept file makes the difference between a short query and a long procedure.
Frequently asked questions
Does enforcement apply to all freelancers?
The rules apply to all assignment relationships, but the Tax Authority's attention goes first to situations with clear signs of an employment relationship.
Does a signed contract always protect me?
No. What matters is actual practice. A contract that doesn't match practice offers little protection.
Who bears the risk, me or my client?
Mainly the client can face back-payments, but you can also feel consequences, such as losing entrepreneur deductions.
May I work for just one client?
You may, but it increases the risk. Build some spread where possible and show entrepreneurship, for example through your own acquisition and equipment.
Create a ZZP contract with digital signature now
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