You see it more and more often: people combining salaried employment with self-employment. That combination offers a lot of opportunities. You have a lot more financial security and the luxury of choosing your own projects. However, you should not forget a lot of things like your administration, taxes, deductions and your employer's permission to be self-employed at all. In this article, we answer all your questions.
Why become self-employed alongside a salaried job?
You already have a job and thus a steady income. So being self-employed alongside this means you are financially stable and well off. You also benefit thick from the freedom to really choose the work you like. These alone are reasons enough to start your own business alongside your job.
The benefits at a glance
- You continue to enjoy your fixed income. And that while even gaining additional income.
- You really are in a position of luxury because you can choose the assignments that make you happy. That way, you can only grow in your skills.
- You have every opportunity to explore entrepreneurship. Maybe you like being self-employed so much that you think: this is what I want to do full-time!
The disadvantages of self-employment alongside salaried employment
Still, there are a few things to consider. We don't really want to call it disadvantages, but we don't have another word for it.
- You have to be careful not to make yourself too busy. Because that can creep in if you do even more of what you love.
- You get a more complex tax return because you have two income streams.
- Your employer may be a little less happy about you working as a self-employed person alongside your job. This may cause conflicts.
Our conclusion: self-employment alongside salaried employment offers lots of opportunities, but planning and clear agreements are crucial.
Roadmap for starting as a self-employed person alongside a salaried job
A good start is half the battle! And a good start includes good preparation. Because this is the only way to start successfully as a self-employed person alongside your job. Follow this step-by-step plan and you will get there.
Step 1 - Check your employment contract
Grab your employment contract and check whether doing business alongside your job is allowed. Does it mention a competition or ancillary activities clause? If so, discuss it with your employer first to avoid misunderstandings.
Step 2 - Register with the Chamber of Commerce
All the lights on green? Then register your company with the Chamber of Commerce (CoC). After your registration, you will receive your company's VAT number. This makes you an official entrepreneur and means you can do business.
Step 3 - Arrange your records & find an accountant!
Make sure you have a clear financial overview. That will make you happy yourself, but your accountant likes it too. You already keep things clear by:
- opening a business account specifically for your company.
- use accounting software to keep track of your income, expenses and VAT returns.
- engage an accountant for the best and professional support.
Step 4 - Tax obligations
There is a chance that you will be liable to VAT and thus have to pay income tax on your extra income. So be prepared for this. Saves you a whole lot of surprises.
Step 5 - Make a time schedule
Very nice all those business plans, but you have to have time for them. So reserve the time for things like your assignments and administration. Oh yes, and don't forget to set aside some time for relaxation? That way you can avoid overload.
How much tax do you pay as a self-employed person in addition to salaried employment?
Exactly how much tax you pay depends on your total income. You pay tax on your combined income and any VAT on your invoices. Make sure your invoices are correct and file your VAT return on time.
Income tax calculation ZZP alongside salaried employment
If you have extra income, everything is taxed in Box 1 of income tax. This applies to the salary you get and the profit you generate from your business. How much tax you pay depends on what you earn annually. Things like the self-employment deduction and the SME profit exemption can make you pay less tax.
Important tip from us: Set aside part of your income for the tax authorities. That way you always have money set aside and avoid financial surprises.
Want to calculate exactly how much tax you will pay? Use our handy calculation tool below to get instant insight into your situation!
Pay attention to whether you qualify for ZZP deductions
As a self-employed person, you may be able to take advantage of these tax benefits:
- Self-employment deduction: You are eligible if you spend at least 1,225 hours a year on your business.
- Start-up deduction: This applies to start-ups in the early years.
- SME profit exemption: 14% of your profit is exempt from tax.
So... keep good records of your hours and administration. Because the Tax Office likes that!
Frequently asked questions about self-employment alongside employment
Does my employer allow me to do ZZP work?
In many cases, there is a clause in your employment contract that restricts side activities such as self-employment. So discuss your plans in advance with your employer and make clear agreements with each other about this. This is best for everyone.
What if I don't make enough hours?
If you make less than 1,225 hours a year, you miss out on important tax benefits such as the self-employment deduction. So that can save you money.
Do I need to take out separate insurance if I go self-employed?
Good to know: as a self-employed person, you are not automatically insured for disability. So consider disability insurance (AOV). Also saves you a lot of hassle, should something happen.
How do I efficiently combine self-employment and salaried employment?
The magic word is: balance. Make sure that as a ZZP'er:
- set realistic goals that are therefore achievable
- create a tight and realistic schedule
- take enough rest, after all, you are busy enough.
And use tools like calendars and accounting software to stay organised. Speaking of which, have you checked out our software offerings? MoneyMonk
The future: from part-time self-employment to full-time entrepreneurship?
Does entrepreneurship suit you? Then really consider full entrepreneurship. Build an established and, above all, stable clientele. Last but not least, make sure you have enough money set aside before taking this step.
So: Being self-employed alongside your job offers opportunities for financial security and your personal growth. However, it is very important to bring responsibility and organisational skills. With the right preparation and arrangements, you can successfully combine both worlds.
