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False self-employment and the DBA Act: what does it mean for you?
Written by Ilias4 min read
False self-employment is a topic many self-employed people deal with, especially now that the tax authorities are enforcing it more strictly from 2026. It means you're formally self-employed, but actually work like an employee. That can have unpleasant consequences for you and your client. This article explains what it is and how to prevent it.
What is false self-employment?
False self-employment means you're an independent entrepreneur on paper, but in practice work like an employee. For example if you work long-term for one client, have fixed working hours, and are under authority like an employee. The tax authorities can then see such a relationship as a disguised employment.
What changes in 2026?
From 2026 the tax authorities enforce more strictly on false self-employment. Previously enforcement was largely suspended, but that period is over. Both you and your client can face additional assessments and corrections if a false construction is found. So it's more important than ever to work demonstrably independently.
How do you prevent false self-employment?
You show you're truly an entrepreneur by having multiple clients, setting your own rates, and arranging your work independently without an authority relationship. Record agreements with your client clearly, for example in a contract of assignment. The more you distinguish yourself from an employee, the stronger your position.
What are the consequences if it goes wrong?
If your working relationship is seen as employment, your client may have to pay payroll taxes that weren't withheld, with additional assessments and penalties. For you it can mean you lose your entrepreneur's deduction. If in doubt about an assignment, have the construction assessed in advance to prevent surprises.
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.
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