Successful fourth edition of the Labor Market Gateway

Lifelong development

"We really need to accelerate on the Lifelong Development dossier," stated ROC Mondriaan board chairman Hans Schutte. Led by Hans Biesheuvel, former chairman of ONL for Entrepreneurs, Schutte entered into a conversation with Maurice Limmen, chairman of the Association of Universities of Applied Sciences. Two gentlemen with a clear vision on the issue and a rich career in the field of education. Limmen came with strong words towards the cabinet: "I call the education plans from the coalition agreement worrying. What strikes me is a lack of notion of retraining and upskilling from one sector to another, a vision on this is completely lacking."

Especially in professions where labor is in high demand - such as engineering, healthcare and ICT - it appears that there are too few qualified people to meet this demand. This problem is exacerbated by technological change and an aging workforce. All in all, this is putting increasing pressure on these sectors.

Educational institutions come along with difficulty

The speakers indicated that educational institutions are struggling to respond properly and effectively to the rapidly changing labor market. This is due to complex regulations, limited flexibility in curricula and a lack of cooperation with industry. Moreover, budget cuts in education are creating additional bottlenecks. To close this gap, the need for better cooperation between educational institutions, businesses and government was emphasized: the so-called triple helix. Companies must be actively involved in designing training so that it is better aligned with practice. The government can play an important role by adjusting regulations and offering financial incentives to promote Lifelong Development.

Long-term study penalty and labor shortages

Another concern was the so-called lanxiety study penalty, which may cause students who take longer to complete their education to be discouraged from further specializing in fields where there are major shortages. The issue of how the nearly half a million people out of work can become active in the labor market again was also addressed. Following this, Maurice and Hans entered into conversation with MPs Mikal Tseggai (GroenLinks-PvdA), Daan de Kort (VVD) and Rosanne Hertzberger (NSC). All these discussions about the cuts in education, the influx of international students and Lifelong Development made for a lively discussion, where clear contrasts could be seen between the coalition and opposition parties.

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Sem Overduin
Public Policy & Affairs Manager
Sem.Overduin@headfirst.nl

Oifik Youssefi
Public Affairs Officer
Oifik.Youssefi@headfirst.nl

Maaike van Driel
Head of Legal
Maaike.vanDriel@headfirst.group

Thomas ten Veldhuijs
Senior Legal Counsel
Thomas.tenVeldhuijs@headfirst.nl

by evavoskuil

Central government launches public campaign to tackle false self-employment

As of Jan. 1, 2025, the Tax Administration's enforcement moratorium will expire. From then on, companies and organizations that hire self-employed workers when in fact they are employed risk an additional tax assessment or fine. As part of the lifting of the enforcement moratorium, the Ministry of Social Affairs and Employment has launched a public campaign. The campaign is aimed at clarifying the rules around labor relations, with the goal of helping clients and contractors understand when someone is self-employed and when employment is involved.

Central to the campaign is a new website, on which clients and self-employed people can find information and tools. An important part of this is the so-called "choice tool." This tool consists of ten questions that help self-employed people determine whether they are actually working on an assignment as a self-employed person or whether there are still many elements that belong to employment. The selection tool, however, does not give a binding judgment and offers advice to start a conversation about the right contract. The website also lists 10 characteristics that indicate self-employment and 10 that fit with being an employee. For example, it looks at whether a self-employed person bears commercial risk, makes their own investments and decides how the work is done. Characteristics of salaried employment include structural work within an organization, fixed working hours and a commitment to effort. What is important here is that no single characteristic is decisive; all factors must be considered in conjunction, which sometimes makes the assessment complex.

The website does not provide any new insights. The examples of ten concrete situations being worked out were already found in the Explanatory Memorandum of the draft law Verduidelijking Beoordeling Arbeidsrelaties en Rechtsvermonden (VBAR). Furthermore, the webpage refers to the web module, but this web module does not take into account the viewpoints and elements from the Deliveroo judgment. In response to the public campaign and the website, MP Thierry Aartsen (VVD) asked written questions to the ministers Van Hijum and Idsinga.

We advise and support our clients and independent professionals on the basis of a framework based on the viewpoints and elements arising from the Deliveroo judgment. In consultation with both parties, we look for an appropriate solution, which may differ per situation. If you would like to know more about this, please contact us.

by evavoskuil

DGA construction not a solution to false self-employment

Other rates

The tax authorities do not recognize the term 'zzp'; for tax purposes, a self-employed person without staff is seen as a sole proprietorship or a private limited company (bv). The report 'Grip op het zzp-dossier', conducted by knowledge platform ZiPconomy on behalf of HeadFirst Group and ONL voor Ondernemers, shows that in 2023 one in ten zzp'ers had a bv, while nine in ten had a sole proprietorship. With a sole proprietorship, the entrepreneur is personally liable for debts of the company.

With a PLC, this liability basically remains with the PLC itself and not with the directors or shareholders. Setting up a PLC can also have tax advantages, because different tax rates apply. Whereas with a sole proprietorship you pay income tax in box 1, with a PLC you pay tax in box 2. It is agreed, however, that these tax benefits only become relevant at a minimum annual profit of €100,000 to €200,000.

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Questions about this? Please contact us.

Sem Overduin
Public Policy & Affairs Manager
Sem.Overduin@headfirst.nl

Oifik Youssefi
Public Affairs Officer
Oifik.Youssefi@headfirst.nl

Maaike van Driel
Head of Legal
Maaike.vanDriel@headfirst.group

Thomas ten Veldhuijs
Senior Legal Counsel
Thomas.tenVeldhuijs@headfirst.nl

by evavoskuil

Tighter, frugal, fast: what will change for the self-employed in 2025?

Anyone who listened to the Speech from the Throne live will undoubtedly have noticed King Willem-Alexander's length and tone. For example, he summarized the cabinet plans for 2025 as "strict, austere and fast. The labor market was also mentioned: the cabinet wants to make efforts to solve the shortage in various ways. Wage employment must become more attractive and everyone must have the opportunity for lifelong development through retraining and further education. But what about the self-employed? We list the most important plans and changes.

Taxes for the self-employed

Self-employed people will pay slightly more tax on average in 2025 if their profits remain the same. This is due to a number of changes in taxes. For example, the self-employment deduction will be further reduced to €2,470 per year in 2025. In 2024, this was the self-employment deduction was still €3,750. Reducing the self-employment deduction is intended to ensure a fiscally level playing field between the self-employed and employees.

Furthermore, as an entrepreneur in the income tax, you are entitled to the SME profit exemption. This exempts part of your profits from income tax. The plan was to reduce the exemption from 2025 to 12.07% (previously this percentage was 13.31). Nevertheless, the percentage in 2025 drops slightly less, to 12.7%.

These adjustments ensure that entrepreneurs have to pay taxes on a larger portion of their profits. At the same time, the cabinet is trying to support low incomes by, for example, increasing the rent allowance and the child-related budget.

Box 1: Income from employment, benefits and home ownership

The classification of Box 1 will be changed to three brackets instead of two. The distribution of the brackets and percentages is as follows:

• On income up to €38,441, you will pay 35.82% tax, which is lower than in 2024.
• On income between €38,441 and €76,817 you will pay 37.48%, a slight increase from 2024.
• For income above €76,817, the rate remains 49.5%.

Lower incomes benefit from the lower rate in the first bracket, while higher incomes pay more tax due to the higher rate in the second bracket.

Box 2: Income from stock ownership

Are you operating in a private limited company? If so, the bv must pay corporate income tax each year. Do you have more than 5 percent of the shares and also work in this bv? Then you are a director-large shareholder (DGA). As a DGA, you face taxation in box 2 of the income tax. In 2025, the following changes will be made:

• On dividends up to €67,804, you pay 24.5%, equal to 2024.
• On dividends above €67,804, the rate drops from 33% to 31%.

If the rate in Box 2 goes down in 2025, it may be more attractive for entrepreneurs to wait to pay dividends.

Box 3: Income from savings and investments

Do you have savings or investments? Then you will pay no tax on your assets up to €57,684 in 2025. Do you have more assets? Then, just like this year, you will pay 36 percent tax on the return the tax authorities expect you to make in 2025. We call this a notional return.

No deductibility of donations in corporate taxes

As of Jan. 1, 2025, donations to charities are no longer deductible from corporate income tax (vpb). This applies to donations to non-profit organizations (ANBIs) or support foundations SBBI. Gifts by a company to an ANBI at the request of a shareholder with a substantial interest are considered a profit distribution, on which income tax (box 2) and dividend tax must be paid.

Emission-free cars: discount on road tax

The government is encouraging the switch to emission-free cars with rebates on motor vehicle tax (mrb) until 2029. The scheme is as follows:

• From 2026 to 2029, a 25% discount applies;
• Starting in 2030, this discount will expire.

Evaluation of tax entrepreneurial schemes

Over the past six months, an evaluation of several tax entrepreneurship schemes, such as the self-employment deduction and SME profit exemption, has been conducted. Research firms SEO and Dialogic, commissioned by the Ministries of Finance and Economic Affairs, concluded that these schemes have limited effectiveness in stimulating entrepreneurship and social benefits. While no firm conclusions on effectiveness could be drawn, they found that the cost of the schemes is relatively high relative to their effectiveness. This raises questions about possible reforms of these schemes.

Status of legislative proposals

The above cabinet plans are part of the 2025 Tax Plan. The measures are contained in several bills. The Lower and Upper Houses must still approve the bills before the plans can take effect. They will vote on the Tax Plan 2025 in November and December.

by marjoram

Quarter of zzp'ers are already missing out on orders due to approaching enforcement of false self-employment

Highly educated self-employed people expect it to become increasingly difficult to find assignments and already experience that they miss out on assignments due to the approaching enforcement on false self-employment. This is evident from research by HR-tech service provider HeadFirst Group, to which 1,187 self-employed workers shared their experiences and opinions. On Thursday, September 12, a zzp-debate is planned in the Lower House, in which enforcement on false self-employment is an important item on the agenda.

The Cabinet sent a letter to the House of Representatives on Friday, Sept. 6, announcing, among other things, that it intends not to impose penalty fines on principals for the first year. Marion van Happen, CEO of HeadFirst Group, calls this a small step in the right direction: "Just like us, the government notices that clients - both in the profit and non-profit sector - are becoming more cautious in hiring self-employed workers and is taking the first measures to that end. It is positive that they are picking up these signals, taking them seriously and taking action on them, but this is still insufficient to restore and maintain peace in the labor market. We therefore recommend retaining the instrument 'indications' after January 1, 2025, so that client and contractor have time to adjust the employment relationship after advice from the Tax Office."

Reticence among clients
The survey found that about 25 percent of highly educated self-employed workers lost one or more assignments in the run-up to the lifting of the enforcement moratorium. In addition, 57 percent expect it to become more difficult to find assignments in the future due to stricter enforcement.

Van Happen says: "This confirms that clients are becoming more cautious in hiring self-employed workers. We experience in practice that clients have difficulty in properly assessing when a self-employed person may be hired. This leads to risk-averse behavior and fewer assignments for self-employed workers. That should not be the side effect of enforcement on false self-employment."

Awareness and need for greater clarity
The survey also shows that the 65 percent of respondents are (very) aware of the lifting of the enforcement moratorium. At the same time, in their open-ended responses, hundreds of respondents expressed a need for more consistent and specific information that would help them properly prepare for these changes. "It is now up to the parties involved to provide clear information and properly inform both principals and self-employed workers. Fortunately, the September 6 parliamentary letter shows that the cabinet recognizes the importance of clear communication and that a government-wide public campaign is in preparation, to be launched at the end of September. As a leading market party, we will also take our role in communication," Van Happen concludes.

By Natasja Spooren-Wassenaar

Mandatory disability insurance for self-employed workers

The Internet consultation on the bill Basic Disability Insurance for the Self-employed (BAZ) generated a flood of responses. What should you know about the plans to introduce compulsory disability insurance for self-employed workers?

Why will there be a mandatory AOV?

The introduction of a mandatory AOV for self-employed workers stems from a proposal by the Labor Foundation. In fact, in June 2019, an agreement was reached between trade unions, employer organizations and the Cabinet. Part of this agreement was the introduction of a compulsory AOV for self-employed workers. i The purpose of this scheme is to protect self-employed workers against loss of income in case of disability. What many people do not know is that the compulsory AOV is a condition for receiving financial resources from the European corona recovery fund. The legislation must be passed by 2025, but implementation is not expected until between 2027 and 2029.

What does mandatory AOV entail?

The mandatory AOV is likely to have the following features:

• The compulsory AOV will cost a maximum of €195 per month; One year waiting period before benefits start100% of the legal minimum wage in case of full disability, with a maximum of 70% of last earned income or profit.
• Until state pension age for permanent disability.
• A stability contribution will be collected from private insurers (solidarity premium)
• Disability is assessed based on residual earning capacity in all occupations, not just one's own.

For whom will the AOV become mandatory?

The mandatory AOV will apply to all entrepreneurs who pay income tax, also known as IB entrepreneurs, including collaborating partners. Exceptions are likely for director-major shareholders (DGAs) and part-time entrepreneurs who work as self-employed workers in addition to salaried employment. Having employees or sufficient assets are not reasons not to participate in mandatory AOV.

What if the self-employed person already has an AOV or prefers to take out one himself?

There have been long discussions in the polder about an "opt-out arrangement" for self-employed persons who prefer to take out their own private insurance. The bill includes this possibility, but under the condition that the private insurance has at least the same conditions as the compulsory public insurance. Other provisions such as endowment circles or Brood Funds will not be sufficient to obtain exemption from compulsory AOV.

by evavoskuil

"Put entrepreneurship and desire of self-employed and client central"

What the Netherlands can learn from other countries about zzp legislation

The distinction between a zzp'er and an employee is not only an issue for the Netherlands, the discussion also plays out in other countries. In a new report, HR-tech service provider HeadFirst Group, ONL for Entrepreneurs and independent platform ZiPconomy present valuable lessons that the new cabinet and Dutch politicians can learn from other Western countries. "There are countries where the 'will of the parties' plays an important role and where entrepreneurial criteria outweigh circumstances during the assignment. It is a missed opportunity for the Netherlands if we do not value these factors," said Marion van Happen, CEO at HeadFirst Group.

Developing new laws and regulations around self-employment in the Netherlands is an urgent task for Eddy van Hijum, the new Minister of Social Affairs and Employment (SZW). When are organizations allowed to hire self-employed workers and when must they offer an employment contract? This question occupies policymakers and governments worldwide. The research report 'International perspective on zzp legislation. What the Netherlands can learn from other countries' offers in-depth insight into the solutions and approaches used in other countries.

Greater focus on entrepreneurial criteria and the individual
The Netherlands can learn a lot from the experiences of countries such as Belgium, Germany, Canada and the United States (US). "As an international HR-tech service provider, we are confronted daily with a variety of laws and regulations," says Marion van Happen, CEO of HeadFirst Group. "These experiences offer the Netherlands valuable insights. In Belgium and Germany, for example, the focus is first on entrepreneurial criteria and the identity of the worker. That is a fundamentally different approach than the one we know in the Netherlands."

No one-size-fits-all
"The report shows that there is no one-size-fits-all solution," said Erik Ziengs, president of ONL for Entrepreneurs. "It is important to learn from the experiences and solutions in other countries. This report invites a robust political-social discussion about the role of the self-employed in the labor market and our perception of this group of workers."

In doing so, there must be sufficient room for the wishes of the workers themselves, according to Ziengs and Van Happen. After all, several studies show that the vast majority of self-employed people consciously choose entrepreneurship, driven by autonomy and control over their own working day. Van Happen: "In Canada and Belgium, the 'will of the parties' plays an important role in assessing the employment relationship. It would be a missed opportunity if we do not value this factor in the Netherlands."

Ziengs adds: "If self-employed people charge a solid hourly rate, keep good financial records and proactively recruit new business, they deserve the freedom that entrepreneurship offers."

The new report can be downloaded here.

By Natasja Spooren-Wassenaar