False self-employment, underpayment, and risks
If the rate is below € 16, we cannot guarantee fair conditions. Should a conflict subsequently arise with the contractor or an authority such as an insurer, tax authority, labour inspectorate, or the UWV (Employee Insurance Agency), we will explicitly distance ourselves. The client or contractor will not be able to rely on any security we offer. If we find out about the conflict, we can suspend and/or terminate the agreement without prior notice and without being liable in any way to the client or contractor for damages; if necessary, we can also report the case to the competent authorities.
When you work with contractors, you agree to an all-inclusive rate on an hourly, commission, or project basis. We believe that an average minimum hourly rate is essential for self-employment. After all, contractors need the scope to work for their own account and at their own risk, and must be able to insure themselves against certain risks. It is important to prevent false self-employment so that high after-taxes are not imposed. Verloning.nl offers you the guarantee that everything is in order.
When a rate of less than € 16 is applied, there is usually an employment relationship. For the client, the invoice will not have a liberating effect, and the Tax and Customs Administration may consider the payment as net wages, so that the client still has to pay payroll taxes and contributions. In addition, the Tax and Customs Administration can impose a fine of up to 10% with a ceiling of € 5,000 for failure to file and/or late filing of a tax return. Finally, the contractor can be seen as an employee who falls within the scope and collective agreement in place at the employer.
Control over your own income
Occasionally, clients will point out that in an employment relationship the minimum wage is lower for people between the ages of 18 and 21, and they ask why this is not the case for contractors. When you work as a contractor, you work for your own account and at your own risk, and you take control of your income. A minimum rate is required for this. Although we consider €16 to be on the low side, it is at least less unfair. You hire someone for his or her abilities, and this is not age related. Recently, the European Committee of Social Rights ruled against the Netherlands on this matter.
Are you interested?
If you would like to discuss your specific situation, please feel free to contact us. We will help you to become your own boss in a way that suits you.