After you complete your profile, the in-app onboarding will follow. Make sure you are familiar with the responsibilities of a freelancer. Then you can go through the course a lot easier and get started quickly!
To get you started, we have listed all the important issues in the article below:
Freelancing
When you start freelancing, you are your own boss. This gives you a lot of freedom because you can decide where, when, for whom and at what rate you work. So you can always work somewhere new, nice and varied. But there are also some responsibilities. You work for different clients without being employed. So there is no boss to take care of things like taxes, pension and illness. Thus, you are in charge of your own finances and administration. The rate of the gig, which is displayed in the app, is exclusive of VAT (btw) and includes all other costs such as travel or accommodation.
What else do you need to arrange?
1. A VAT ID
When you start freelancing, you start your own business and are required to apply for a VAT ID (btw-ID). You can work the first three gigs without VAT number, then your account will be temporarily blocked until you receive your VAT number and enter it into the app. If you want to avoid a block, request a VAT ID as soon as possible. This can take up to two weeks. You can apply for a VAT ID in two ways:
- Through the tax authority (Belastingdienst): this is free and takes about two weeks.
- Through the Chamber of Commerce (Kamer van Koophandel): this will cost you €75,-. You will receive your Chamber of Commerce number immediately upon registration. Within about two weeks, you will receive a message from the Tax Authorities about your VAT ID.
When you register with the Chamber of Commerce, you are also registered in the trade register. If you meet the hours' requirement of 1225 hours per year, you can take advantage of a number of benefits. For example, you can open a business account, purchase insurance and are entitled to a number of tax benefits.
Read all about applying for a VAT ID here.
2. Tax returns
If you have received a VAT ID, then you are also required to file tax returns. You have to deal with two different taxes:
- Income tax (inkomstenbelasting): you file this tax return once a year before May 1. You then pay tax on all your income from the previous calendar year. Note: when you work as an employee, you pay tax during the year, but when you work as a freelancer this is not the case. So keep in mind that at the end of the year you will still have to pay the income tax.
- The turnover tax (or VAT declaration) (omzetbelasting): this declaration is done every quarter of the year. You receive 21% VAT on your invoices, which you pay back to the Tax Authorities when you file your turnover tax return. You can also reclaim the VAT you paid on your business expenses. Note: even if you did not receive any VAT in the quarter in question, you must still declare that you received €0 in sales.
Read more about tax returns here or view our white papers.
3. The Small Businesses Scheme (kleineondernemersregeling, KOR)
Since January 2020 there is a new Small Businesses Scheme (KOR). With the KOR, you can get a turnover tax exemption when you earn less than €20,000 per calendar year. This means that you will no longer receive VAT, nor can you reclaim it, which saves a lot of administrative work. If you want to apply for the KOR, you can do so through the Tax Authorities. Make sure you apply at least four weeks before the new quarter starts. The KOR regulation is valid for three years.
Read more about the Small Businesses Scheme here.
4. Insurance and pension
In the Netherlands, independent workers have the free choice to get insurance. But at YoungOnes, we believe that all workers, regardless of the form of work, should be protected against accidents or if there is damage/injury to third-party property. So in cooperation with Collective Benefits, we have made sure that for gigs through YoungOnes, you are insured for liability and accidents free of charge. Disability insurance is not covered; you can arrange it yourself if you wish.
Read more about free insurance (accident and liability) through YoungOnes and your pension here.
5. What should I do if I can't work?
If you are scheduled for a gig, but you cannot work at the last minute (after the cancellation period has expired), you will have to arrange a replacement. If you do not show up for the gig, and you have not arranged a replacement, you will receive a 'gig not completed' notification. When you receive a 'gig not completed' notification, it affects your attendance rate. The more gigs you don't complete, the lower your attendance percentage becomes. Clients see your attendance percentage when you respond to gigs, so make sure you keep your percentage as high as possible.
Read more about the cancellation policy here.
Are you aware of everything? Then complete your profile and start the in-app onboarding!