How do you become a freelancer?
Because of the tax benefits (later more on this subject) it is wise to start a sole proprietorship at the beginning. This is also the most common form of enterprise among freelancers. It is advisable to also take a good look at the other possibilities such as a Private Company (B.V.) or a cooperative. These forms of enterprise can in fact come in handy in the future. You can contact an accountant or tax consultant about this.
As soon as your registration in the Commercial Register is completed, you will immediately receive your Chamber of Commerce number and you will also be given the option to request a (digital) statement. You must be able to hand over this as soon as you have received an assignment. In addition, a VAT number is applied for when registering (if you are liable for VAT) with the tax authorities. This VAT number consists of:
The country code NL
An RSIN / fiscal number or citizen service number (BSN)
An addition of 3 positions: B01 to B99
If you have opted for a sole proprietorship, you will receive a VAT number that consists of the country code (NL), your BSN number and as a closing number B01.
Then it is important that you provide good work equipment. Not every client can make a laptop and any other necessities available for an assignment. An additional advantage is that you can easily keep all business and private activities separate by means of your own work equipment.
Lastly, it is important to properly organize the administrative affairs. As an IT employee, this is not the best job, but as an entrepreneur this is one of the most important. After all, a thorough administration ensures a financial overview. This is also important if you are going to file the turnover tax return (every quarter). It is advisable to open a business account. This way you keep your business and private administration more organized. If you are not a huge hero with figures and tax rules, you could consider outsourcing this to an accountant or accountant.
TIP: Take a full day off to arrange everything as a starting entrepreneur. An appointment at the Chamber of Commerce and the bank can (considerably) end.
The contractual matters
The biggest difference with the VAR is that instead of just the professional, the client now also runs the risk of additional tax. A good model agreement is crucial to limit all risks as much as possible. That is why WIBA IT works with the Model Contracts drawn up by the Bovib and approved by the Tax Authorities. In this way we have covered the whole chain with certainty.
Do you want to know more about the contractual matters? At WIBA IT we have a very skilled Contract department. Contact them via firstname.lastname@example.org or call 010 840 9999!
Getting the right job
There are, of course, more options for arriving at a challenging assignment. For example, there are intermediary agencies (such as WIBA IT) that often have the right contacts and assignments that suit you. In addition, a mediation agency can take care of administrative matters. For example, we at WIBA IT take over the entire contract processing (by means of an approved model agreement) and we support the financial settlement of an assignment. This way you can focus as a professional on what you really are good at. Make the client happy!
It is important that you do not immediately register with dozens of agencies in your search for a nice assignment. It is possible that you automatically give permission to be offered to clients at registration. This can be very disadvantageous with regard to the rate, duration of the assignment and other conditions. It is therefore advisable to call in a maximum of three good mediation agencies and to maintain good contact with these agencies. This way you create a higher gun factor and you expand an ever-growing network even faster.
Of course there are many more possibilities to get jobs as a (starting) freelancer. Curious about these possibilities? Please contact us and click on the button below!
If you want to make use of the advantageous tax regulations, such as the self-employed and start-up allowance, you must meet certain conditions. One of the conditions is the hour criterion. You are expected to work 1225 hours for your own organization in a year. This amounts to an average of 24 hours a week. This may seem like a lot, but if you have received an assignment, you will soon be here. In addition, you may also include working hours that are not billable. Think of hours that you put in your administration or in your own website.
It is important to read in on this subject. If a declaration is incorrect, you have to correct it. Correcting a declaration will cost time and therefore money. An accountant or bookkeeper can therefore offer a solution here. These professionals initially cost money but will eventually yield time and potential tax benefits. Worth considering!
Insurance and your pension
To start with the insurance policies. There are several insurance policies that can ensure that you still receive income from illness. These insurances, however, are very expensive (€ 600, – to € 1200, – per month). In addition, there are many rules that can reduce a benefit. It is therefore the consideration that you have to make in order to set aside this money each month. In this way, there is still a source of income in case of illness. However, these insurance policies are not mandatory.
In addition, it is important to have a business liability insurance. Since the introduction of Law DBA this is a requirement to be able to start with a client. Fortunately, these insurances are fairly cheap (about € 120 per year).
Then there is the pension. If you choose not to arrange something for your old age, you will only be entitled to AOW in the future. This is often not enough for most households by far, which is why many freelancers do try to build up supplementary pension.
This can be done in several ways. For example, you can take out an annuity insurance policy, put money aside via the Fiscale Oudedagreserve (FOR) or, as before, deposit a fixed amount every month on a separate savings account.