Working for your previous boss as a freelancer? Pay attention!

Working for your former employer as a self-employed professional is, in principle, perfectly legal, but the risk is that the Tax and Customs Administration views the collaboration as a disguised employment relationship (false self-employment). If, in practice, the former employee performs the same work, in the same manner, and largely for the same client, the relationship may still be classified as an employment contract. For the client, this means additional assessments of payroll taxes; for the self-employed professional, it means the loss of the entrepreneurial deduction. Good written agreements and a genuinely independent working method are therefore crucial.

Are you allowed to work for your previous employer as a self-employed person?

Legally, there is nothing prohibiting an ex-employee from approaching their former employer as a client. Consider an IT professional whose contract expires, who starts their own business and subsequently provides services to their old employer. A logical and convenient first client. As long as the collaboration is genuinely independent in practice, there is nothing wrong with that.

The pitfall lies in the revolving door mechanism: an employee leaves employment on paper and immediately returns as a self-employed professional, while in reality little changes. The Tax Authorities do not look at the label on the contract, but at how the parties actually behave. If the practice does not match the paper, then the practice counts.

Why is the Tax and Customs Administration critical of this?

For an employer, it may seem attractive to hire someone as a self-employed professional rather than keeping them on the payroll. The self-employed professional then loses protection against dismissal, continued payment of wages during illness, holiday pay, and the right to the minimum wage, while the client bears no employer contributions. In turn, the self-employed professional can claim tax benefits that are only available to entrepreneurs.

To prevent such a structure from being set up solely for tax reasons, the Tax and Customs Administration scrutinizes employment relationships. Since January 1, 2025, the previous restraint in enforcing the DBA Act been lifted, and the Tax and Customs Administration is once again actively taking action against bogus self-employment. If the Tax and Customs Administration determines that the employment relationship never actually ended, this can lead to substantial adjustments.

When is there a case of bogus self-employment?

The core issue is whether an employment contract exists . To determine this, three elements are examined: whether work is performed personally, whether remuneration is paid in return, and whether a relationship of authority exists. The latter, authority, is particularly decisive in determining whether someone is an employee or an entrepreneur. The Tax and Customs Administration and the court weigh all the circumstances of the case; no single characteristic is decisive in itself.

Does the self-employed professional have multiple clients?

If a self-employed professional works exclusively or almost exclusively for their former employer, the risk of bogus self-employment is lurking. A healthy spread across multiple clients indicates genuine entrepreneurship. The law does not prescribe a fixed number of clients, but as a rule of thumb, a handful of clients is often cited, depending on the industry. It also holds true that if the vast majority of your revenue depends on a single client, that is a signal that attracts extra attention. Spreading revenue and hours strengthens your position as an entrepreneur.

Is there genuine independence?

An entrepreneur largely determines for themselves how, when, and where they work. If the self-employed professional can schedule their own hours, plan their own vacation, determine their working methods, and potentially arrange for a replacement, this indicates independence. If, on the other hand, the self-employed professional is constantly under the supervision of the former employer and receives the same instructions and guidelines as a regular employee, then independence is lacking, and it effectively amounts to employment once again.

Other indicators of entrepreneurship include taking commercial risk, personal investments and business assets, representing your business externally, and liability for your work. The more of these characteristics are present, the stronger the self-employed status.

What activities does the self-employed professional perform?

The Tax and Customs Administration also considers the nature of the work. If the self-employed professional performs exactly the same work as when they were employed, at the same location and in the same role, this may indicate that the freelanceor collaboration agreement has no independent significance and that the old employment contract effectively continues. Therefore, clearly define the specific assignment or result the self-employed professional delivers, and ensure that this distinguishes it from the former salaried position.

What are the consequences of bogus self-employment?

If the Tax Authorities determine that it concerns bogus self-employment, the consequences are unpleasant for both parties:

• The client may be held liable for unpaid wage taxes and social security contributions, in principle with interest and possibly a fine.
• For the self-employed, business tax benefits, such as the self-employment deduction, can be reversed.
• Moreover, under employment law, the self-employed professional can argue that he is actually an employee, with a claim to matters such as continued payment of wages, protection against dismissal, and holiday pay.

Transitional agreements apply regarding the more active enforcement. For clients and self-employed professionals who demonstrably take steps against bogus self-employment, it has been agreed that they will not immediately receive a default penalty for the time being; in case of suspicion, the Tax and Customs Administration usually starts with a business visit or a warning. A fine remains possible in cases of intent or gross negligence. Important: this leniency applies to the default penalty, not to the additional assessment itself. The obligation to remit payroll taxes correctly remains, and the enforcement and penalty policy may change annually. The exact amounts, percentages, and retroactive effect depend on the situation and the policy in force at that time. Therefore, always seek advice beforehand rather than relying on general percentages.

How do you avoid problems when returning as a self-employed professional?

You significantly reduce the risk by structuring the collaboration in a businesslike and independent manner from the outset:

1. Work with a sound, practice-oriented contract for services and concretely define the specified assignment or result.
2. Ensure that the self-employed professional different duties than in their previous position, or that the role is structured clearly differently.
3. Build a client base with multiple clients and diversify your revenue.
4. Avoid a hierarchical relationship: no fixed working hours, no mandatory attendance, and no directing as if it were an employee.
5. Figure entrepreneurial characteristics: own invoices, own business assets, own liability insurance, and visible entrepreneurship.

It is important that the agreements on paper and the practice correspond. A nice contract is of no use if, in practice, there is simply an employee at work.

The Tax and Customs Administration does not look at the label on the contract, but at how you work together in practice. Ensure that paper and practice speak the same language.

Frequently asked questions about freelancing at your previous employer

Am I allowed to work for my former employer as a self-employed professional immediately after my dismissal?

That is permitted, but a direct return ('revolving door arrangement') in particular attracts extra attention. It is assessed whether the collaboration is truly independent in practice. If little actually changes compared to your employment, the risk of reclassification as an employment contract is high.

How many clients do I need to have as a freelancer?

The law does not specify a fixed number. Multiple clients and diversified revenue do indicate genuine entrepreneurship, whereas dependence on a single (former) employer is a risk factor. How many clients are 'enough' depends on your industry and your overall working method.

Who bears the costs in cases of bogus self-employment?

In the first place, the client, through the assessment of additional payroll taxes. Additionally, the self-employed professional may lose the entrepreneurial deduction. It is therefore in the interest of both parties to structure the arrangement properly.

Is a model agreement sufficient protection?

A written agreement is advisable, but never a guarantee. The Tax and Customs Administration looks at the actual implementation. If practice and the contract differ, the actual course of events prevails.

Will I get a fine immediately for bogus self-employment?

Not necessarily. Transitional agreements apply regarding the more active enforcement: in the event of suspicion, the Tax and Customs Administration usually starts with a company visit or warning and does not immediately impose a default penalty on parties that demonstrably take steps. The situation may be different in cases of intent or gross negligence, and an additional assessment of payroll taxes remains possible in any case. Seek advice regarding the current state of affairs.

What changes are there regarding the enforcement of bogus self-employment?

Since January 1, 2025, the Tax and Customs Administration has once again actively enforced against bogus self-employment, and employment relationships can be checked and corrected. The enforcement and penalty policy is evolving and is periodically adjusted; therefore, seek advice regarding the current state of affairs.

Have your employment relationship legally reviewed

Whether you are a client or returning to your former employer as a self-employed professional, it pays to clearly document the agreements in advance and structure the collaboration so that the Tax Authorities have as few points of reference as possible. Our employment assess your situation, draft a suitable agreement, and point out the risks, in the interest of both the client and the self-employed professional.

Want to know where you stand? Schedule a no-obligation intake or view our legal assistance for entrepreneurs. Also read how to avoid being classified as a bogus self-employed person and why the contract for services is so important for self-employed professionals and freelancers.