Self-employed alongside salaried employment
If you want to become self-employed alongside your permanent job, you benefit from the best of both worlds. You keep your salary and employee rights, while at the same time you can try out how entrepreneurship works in practice. It does require good planning and clear agreements so that you avoid getting caught up with time or obligations. Below, we list the advantages and disadvantages for you.
Advantages and disadvantages
Being self-employed alongside salaried employment has attractive advantages, but also some distinct disadvantages. This overview will help you see both sides quickly.
| Advantages | Cons |
|---|---|
| Financial security | Busy schedule |
| Freedom and growth | Additional administration |
| Employee benefits | Fewer tax breaks |
| Experience and network | Bringing employers along |
Agreements with employer
Check your employment contract, collective labour agreement and arrangements regarding secondary employment, confidentiality and competing activities. Take any reporting or consent agreement seriously. An employer may not forbid secondary activities without objective justification, for example in the event of a conflict of interest or a risk to health and safety. Discuss your plans and record agreements in writing.
Tax issues self-employed and salaried
Your wages and business profits are taxed together in Box 1 of income tax. So you pay tax on your total income at the normal rates - not double. However, as an entrepreneur, you will have to take care of additional matters yourself. Think about filing your VAT return and setting money aside for tax, so you will not be faced with any surprises at the end of the year.
VAT return (omzetbelasting)
If you must file a VAT return, follow the period assigned by the Tax and Customs Administration: usually quarterly, sometimes monthly or annually. File a nil return too when required. Exempt supplies and participation in the small businesses scheme (KOR) can change your filing obligations.
Small business scheme (KOR)
With a maximum turnover of €20,000 per calendar year, you can participate, subject to conditions, in the KOR. Registration is required. You then do not charge VAT and do not deduct VAT on expenses. For foreign transactions, among other things, separate reporting obligations may continue to apply.
Income Tax
Your employer withholds payroll tax from your salary. For income tax , salary and business results are assessed together. Estimate your annual income, deductions, tax credits, payroll tax already withheld and any Health Insurance Act (Zvw) contribution. Use that estimate to set your reserve and adjust your provisional assessment if needed. A fixed percentage of each invoice does not suit everyone; keep VAT separate.
Income tax calculation
The calculation tool below provides an indication based on your input and the assumptions used. Please check the tax year and the components included; the outcome is not a definitive assessment.
Deductions
First, assess whether you are an entrepreneur for income tax purposes. For the self-employed deduction, a minimum of 1,225 entrepreneurial hours generally applies, as well as spending more time on your enterprise than on other work. The second requirement is waived if you were not an entrepreneur in at least one of the five preceding years. Start-up deduction has additional conditions; the SME profit exemption does not have an hour criterion. Read our explanation about the hours criterion and the official terms and conditions.
Insurance and pensions
Check which part of your income is covered in the event of illness or incapacity for work and which business risks you bear yourself. Your job may provide existing pension and insurance cover; additional cover depends on your situation. Read about insurance for the self-employed and pension contribution allowance (jaarruimte).
Roadmap: starting as self-employed alongside your job
In the step-by-step plan below, you can read in 6 clear steps what you need to arrange, from your registration with the Chamber of Commerce to keeping track of your hours.
Step 1 - Check your employment contract
Check the contract, collective labour agreement and any reporting or consent arrangements. Discuss potential conflicts of interest and record agreements.
Step 2 - Register with the Chamber of Commerce
Sign up at the Chamber of Commerce (usually as a sole trader) and get a Chamber of Commerce number and VAT identification.
Step 3 - Organise your administration
Keep your records in order from day one (separate business account, use accounting software, keep receipts).
Step 4 - Arrange tax matters
Check your VAT period and deadlines. Calculate your expected income tax based on both salary and business profit and set aside enough.
Step 5 - Make a time schedule
Schedule set times for your zzp work and clearly communicate your availability; also guard your own rest.
Step 6 - Keep track of your hours
Keep a record of hours - jot down all direct and indirect hours - so you can prove that you reach 1,225 hours for deductions.
Common mistakes and misunderstandings
Avoid ignoring contract agreements, underestimating taxes, or overestimating your existing cover. Payroll tax credit should only be applied by a maximum of one employer or benefit agency. For income tax, the final tax credits are calculated based on your relevant annual income. Extra profit can lead to additional payments because your employer does not factor this into the withholding.
Frequently Asked Questions
Does my employer allow me to do zzp work?
That is usually possible. Check your contract and collective labour agreement for notification or consent arrangements and discuss potential conflicts of interest. A ban on secondary activities requires objective justification, for example on the grounds of health, safety or confidentiality.
What if I don't make enough hours?
You may run a business part-time without meeting the hours criterion. In that case, you generally do not have the self-employed person's deduction. Business expense deductions and, if you are an entrepreneur for income tax purposes, the SME profit exemption can still apply. Assess each scheme on its own conditions.
Do I need to take out separate insurance if I become self-employed?
Check your existing cover, business risks and any requirements from your profession or client. Your employee cover does not automatically protect your business income or liability. Discuss with an insurer which additional cover suits your combination.
How do I efficiently combine self-employment and salaried employment?
With good planning and communication. Plan your self-employed hours well, let employer and clients know when you are available, and guard your limits. That way, the combination is perfectly manageable.
Can I apply wage tax credits to my self-employed income?
On your freelance invoices, you do not apply any payroll tax credit. Have that credit applied by a maximum of one employer or benefit agency. When filing your income tax return, the final tax credits are calculated on the basis of your relevant annual income, including business income.
