Freelancing through an agency or secondment firm
Written by Ilias Aarrass7 min read · Published on · Last reviewed on 
In short
If you work through an agency, the agency is often your client and your debtor, with a margin of roughly 5 to 20 per cent between the end client's purchase rate and your rate.
- Ask for the end client's purchase rate; it determines your room at renewal.
- Self-billing is allowed if agreed in advance, but you remain responsible for accuracy.
- Watch the non-solicitation clause, exclusivity, liability and the notice period in the contract.
- The assessment of false self-employment concerns your work at the end client, not the contract with the agency.
At large organisations, hiring rarely happens directly. There is an agency in between: an intermediary, a secondment firm or a broker handling the purchasing of external staff. For you that is convenient, because you would not easily find such assignments yourself, but it does change your position. Who is your client, who pays your invoice, what is the margin and what risk do you run if the end client does not pay? This article sets the contract types side by side, with the points to check before you sign.
The triangle: who is your client?
When hired through an agency there are always three parties: you, the agency and the end client where you do the work. The question of who your client is determines whom you invoice, whom you approach if payment fails and who is liable for damage. That is in the contract, not in who you speak with daily.
| Form | You invoice | Watch out |
|---|---|---|
| Introduction | the end client | the agency takes a fee from the client or from you |
| Contracting through the agency | the agency | the agency is your client and your debtor |
| Payroll or employment | nothing, you receive wages | for that assignment you are not self-employed |
Invoicing, VAT and payment
Many agencies use self-billing: they draw up the invoice on your behalf based on your approved hours and pay it out. That is allowed, provided you agree it in advance and you check the invoice. You remain responsible for what it says: are the hours, rate, VAT number and VAT correct? If you spot an error, have it corrected before you process it in your records.
VAT is usually simple: you supply a service to a Dutch business and charge 21 per cent. There is one exception that often applies in construction: if you hire out staff or work as a subcontractor on physical work, the reverse-charge scheme may apply and you mark the invoice VAT reverse-charged. For most office-type assignments it does not.
- Check the payment term: agencies sometimes use 45 or 60 days while you pay your own costs monthly. See statutory payment terms.
- Watch for a clause saying you are only paid once the end client has paid. Then you carry the credit risk of a party you have no contract with.
- Ask how hours are approved and what happens if the end client only approves a week later.
- If you work in construction or hire out staff, a blocked account and hirer's liability may come into play.
Worked example: what is left of the rate?
- End client pays the agency
- € 85 an hour
- Agency margin, 15%
- € 12.75
- Your rate
- € 72.25 an hour
- At 1,400 billable hours a year
- around € 17,850 in margin for the agency
Result: That can be worth it for an assignment you would not have found yourself. At renewal it is a reason to talk about the rate
The four clauses to watch
Agency contracts are standard documents that are rarely negotiated, while four clauses can affect you for years.
- The non-solicitation clause: may you work directly for the end client afterwards, and for how long not? Six to twelve months is common; longer is a reason to negotiate.
- Exclusivity: some agencies want you not to be offered to the same client through another agency. That is reasonable for one process, not for the whole market.
- Liability and indemnity: check whether your liability is capped at the assignment value and whether your insurance matches what is written.
- Notice period: many contracts have a short term for the client and a longer one for you. Make them equal, certainly if you plan your calendar around it.
And your position as a self-employed professional?
An agency does not automatically make you falsely self-employed, but the combination that often goes with it does: long engagements, fixed days, working in the client's team and taking part in their processes. The tax authorities look at the actual situation at the end client, not at the contract with the agency. Read false self-employment and the DBA Act and keep several clients in view.
Agency or finding work yourself?
An agency is a channel, not a business model. It works well as a starting point, to bridge an empty period or to get into organisations that do not hire directly. It works badly as your only channel: your turnover then hangs on one relationship, you do not know the end client and you have little say at renewal.
A healthy mix is: one or two agencies where you are known, plus your own acquisition running alongside. How to build that second part is in finding your first clients. If you work through an online platform instead of an agency, read working through a platform: different rules apply there, including on data sharing with the tax authorities.
Frequently asked questions
Who is my client: the agency or the end client?
It depends on the form. With contracting through the agency you invoice the agency and it is your client; with pure introduction you invoice the end client. Check your contract for the counterparty.
What is a normal agency margin?
Often 5 to 20 per cent of the hourly rate, depending on what the agency does: mere introduction is cheaper than contract management, invoicing and taking over the credit risk. Just ask.
May the agency draw up invoices on my behalf?
Yes, that is self-billing and it is allowed if you agree it in advance. You remain responsible for accuracy, so check hours, rate and VAT before booking the invoice.
May I work directly for the end client afterwards?
Only if your contract allows it. Nearly every agency has a non-solicitation clause with a period attached. When signing, ask for a reasonable term and a buy-out option.
Am I falsely self-employed if I work through an agency?
Not because of the agency as such. What matters is how you work at the end client: fixed hours, direction and being embedded in the organisation weigh heavily. Your own way of working, your own equipment and more clients make your position stronger.
Sources
- How to calculate your hourly rateKVK · kvk.nl
- Reverse charge for subcontracting and hiring out staffBelastingdienst · belastingdienst.nl
Sources checked on
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
