Freelance work, also known as self-employment, is a form of work in which a person offers services to multiple clients as a self-employed person, without a permanent employment contract. Freelancers typically work on a project-by-project basis and are paid per assignment or hour. They are responsible for their own business operations, billing, tax remittance, and insurance.
A freelancer finds work through direct contact with clients, through freelancing platforms, or through networking.
The freelancer and the client enter into an agreement that stipulates the work and compensation. This can be an assignment contract or a verbal agreement.
After completion of the work, the freelancer sends an invoice to the client and takes care of the payment of income tax and, depending on the situation, sales tax (VAT).
A freelancer is responsible for their own insurance against disability, pension provision, and other financial risks.
STYPTEC aims to unburden both freelancers and clients, so that they can focus on their core activities without worrying about administrative and legal obligations. Via your secure account, you can easily create an invoice and send it to your client, entirely in accordance with the agreements made. Preparing and sending an invoice will only take you two minutes. We take care of all tax matters and insurances directly for you. You will receive the net payment immediately after your client has paid, so that you can get your money quickly. If desired, we can also advance the invoice, giving you even faster access to your money. This will save you time and reduce stress.
Freelancers have the freedom to set their own working hours, choose their own assignments, and set their own rate.
Freelancers can work for a variety of clients, which gives them the opportunity to develop their skills and gain new experiences.
Freelancers can take advantage of various tax benefits such as the self-employment deduction and start-up deduction, provided they meet certain conditions.
Freelancers do not have a fixed income and may face periods when little work is available.
Freelancers do not accrue entitlement to unemployment benefits or sick pay. They have to arrange their own insurance, which comes at a cost.
In the Netherlands, freelance work is regulated by the Tax and Customs Administration and the Chamber of Commerce. Freelancers must be registered with the Chamber of Commerce (KvK) and can use the Declaration of Employment Relationship (VAR) or the Deregulation Assessment of Employment Relations Act (DBA) to demonstrate that they do not have an employment relationship with their clients. The regulations surrounding freelancers remain a point of attention for the government, especially to prevent bogus self-employment.
| Aspect | Payrolling | Freelance |
|---|---|---|
| Employer | Payroll company | None (self-employed) |
| Income | Fixed salary via payroll | Dependent on assignments |
| Responsibilities | Payroll company takes legal responsibility | Freelancer is responsible for his or her own |
| Social security | Yes, arranged through payroll company | No, must be arranged by the freelancer himself |
| Flexibility | Some flexibility, but often in an employed model | Full flexibility and independence |
Payrolling and freelance work each offer unique benefits, depending on the wishes of the employee or self-employed person and the nature of the work. Companies looking for flexibility without the employer risk can benefit from payrolling, while individuals who like to work autonomously and choose their own assignments benefit from freelance work. Both options require regulatory knowledge to stay within the frameworks and take full advantage of the opportunities they offer.
