Back to knowledge base
Starting
Hiring a freelancer or employee: false self-employment
Written by Ilias4 min read
If you need extra hands, you can take someone on staff or hire a freelancer. That choice has tax and legal consequences, especially now that the tax authorities enforce more strictly on false self-employment from 2026. This article explains what to watch for as a client.
What's the difference?
If you take someone on staff, you're an employer with all the obligations that come with it, such as payroll taxes and continued payment during illness. If you hire a freelancer, you work with an independent entrepreneur who arranges their own tax. The freelancer invoices you, including VAT.
What's the risk of false self-employment?
If you hire a freelancer who actually works like an employee, the tax authorities can see the relationship as employment. That's called false self-employment. From 2026 this is enforced more strictly. As a client you may then have to pay back payroll taxes, with penalties.
How do you prevent problems?
Make sure the freelancer you hire works demonstrably independently: own rates, multiple clients, and no authority relationship as with an employee. Record the agreements clearly, for example in a contract of assignment. The more the collaboration resembles genuine entrepreneurship, the lower the risk.
What's the best choice?
The choice depends on your need. If you have structural work and want to bind someone, employment fits better. If you have temporary or specialised work, a freelancer is more logical. Weigh the costs, the flexibility and the risk of false self-employment against each other.
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.
Looking for a bookkeeper?
Schedule a no-obligation call and find out what Fiscly can do for your business.
Ilias
