Many BVs currently hire self-employed as 'flexible peel'. After all, you can easily call in a self-employed person if you need it, without your BV being attached to him. You do not have to worry about a good freelancer, do you?
Is your self-employed person an entrepreneur?
Extra inspection tax. But how do you know whether the hired self-employed person is a good one? The Tax Authorities recently announced that they are going to critically investigate whether self-employed entrepreneurs and other contractors are involved in 'false entrepreneurship'. Pay attention. It is wise to keep a close eye on whether the employment relationship is not an employment, because if that is the case, your BV is obliged to withhold payroll taxes. When you will opt for the Income Tax Watson then the followinf things you will hardly have to notiuce though.
Employment? Determining whether an employment is involved is difficult. The following questions must be answered with 'No', with the last question often giving the most problems.
1) Is the contractor obliged to perform the work personally?
2) As a client, are you obliged to pay wages (for example also in case of illness)?
3) Is the contractor in a relationship with authority as the client?
Valid Declaration of employment relationship
VAR. Certainty that your BV does not have to withhold payroll taxes can still be obtained this year if you have a valid VAR (Employment Relationship Declaration) from the contractor. Pay attention. A VAR wage or a VAR-ruo (result from other activities) do not offer you any security. You will then still have to check yourself whether the contractor is employed by you or not. Certainty. A VAR-wuo (profit from company) or a VAR-dga (director-major shareholder) does offer you the assurance that your BV does not have to withhold payroll taxes.
In that case, you will not be liable even if it later appears that the contractor was still employed by you, provided you satisfy the following four conditions:
1. the description of the work in the VAR corresponds to the work that has been carried out;
2. the work has been carried out within the validity period of the VAR;
3. you have established the identity of the contractor;
4. you keep a copy of the VAR and a valid proof of identity of the contractor in your administration.
Pay attention. If you are a contractor, a VAR does not protect you against chain liability for payroll taxes that your subcontractors do not pay. It also does not protect you against hirer's liability for unpaid VAT and payroll taxes if you hire staff from contractors that do not pay these taxes.
Is your self-employed person an entrepreneur?
Extra inspection tax. But how do you know whether the hired self-employed person is a good one? The Tax Authorities recently announced that they are going to critically investigate whether self-employed entrepreneurs and other contractors are involved in 'false entrepreneurship'. Pay attention. It is wise to keep a close eye on whether the employment relationship is not an employment, because if that is the case, your BV is obliged to withhold payroll taxes. When you will opt for the Income Tax Watson then the followinf things you will hardly have to notiuce though.
Employment? Determining whether an employment is involved is difficult. The following questions must be answered with 'No', with the last question often giving the most problems.
1) Is the contractor obliged to perform the work personally?
2) As a client, are you obliged to pay wages (for example also in case of illness)?
3) Is the contractor in a relationship with authority as the client?
Valid Declaration of employment relationship
VAR. Certainty that your BV does not have to withhold payroll taxes can still be obtained this year if you have a valid VAR (Employment Relationship Declaration) from the contractor. Pay attention. A VAR wage or a VAR-ruo (result from other activities) do not offer you any security. You will then still have to check yourself whether the contractor is employed by you or not. Certainty. A VAR-wuo (profit from company) or a VAR-dga (director-major shareholder) does offer you the assurance that your BV does not have to withhold payroll taxes.
In that case, you will not be liable even if it later appears that the contractor was still employed by you, provided you satisfy the following four conditions:
1. the description of the work in the VAR corresponds to the work that has been carried out;
2. the work has been carried out within the validity period of the VAR;
3. you have established the identity of the contractor;
4. you keep a copy of the VAR and a valid proof of identity of the contractor in your administration.
Pay attention. If you are a contractor, a VAR does not protect you against chain liability for payroll taxes that your subcontractors do not pay. It also does not protect you against hirer's liability for unpaid VAT and payroll taxes if you hire staff from contractors that do not pay these taxes.
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