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Choosing between being a self-employed contractor or payrolling

Choosing between being a self-employed contractor or payrolling

Dutch Umbrella Company is an IND-certified sponsor with a specialist team offering extensive knowledge and experience to help skilled professionals migrate to, and work in, the Netherlands.

January marks the beginning of a new year full of opportunities, a fresh start. It shouldn’t come as a surprise that for a lot of people, this could mean a career change. If you’re thinking about moving to the Netherlands to expand your career, be prepared to do a lot of research and planning. The right visas, permits and applications (if applicable) must be in place before anything else.

Here are a few things to consider when you want to work as a contractor in the Netherlands.

A change in legislation

Contracting is becoming more and more popular in the Netherlands, and nowadays, it’s very common for foreign companies to hire a Dutch resident to work for them. In this case, the employee might work from home, for example. Whether you are an experienced contractor or not, you are probably familiar with the laws and requirements of contracting in your own country.

However, clients may require your services elsewhere and you might find yourself contracting in the Netherlands. This means a change of scenery, a change of pace - but also a change in legislation. Dealing with the tax laws and other legal requirements can be a time-consuming and confusing affair.

Being a self-employed contractor, or using a payroll company?

When you get an offer to become a contractor, a lot of companies will allow you to arrange the administration however you want. This can be done by being a self-employed employee through your own B.V. and/or foreign corporate company, or by using an umbrella company that will take care of all the required administration for you.

Being a self-employed contractor

The biggest difference between both options is the administration and social security. If you choose to become a contractor directly through your own company, you need to make sure that you do your own invoicing.

You will also need to follow up with your accountant when it comes to tax administration and other legal requirements. Some companies might even want you to have a G-account, which can become a challenge when you do not have a corporate structure set-up in the Netherlands.

Using a payroll company

Many employers and contractors are still wary of all the administration that comes with contracting. Using a payroll company helps to cut back on both the expenses and the time required to make contracting in the Netherlands work. This leaves employees and employers free to focus on their core business.

By using an umbrella company, the legal administration is taken care of directly. Salary payment and invoicing are done in a timely manner, assuring that the hassle of administration is minimalised.

So, do you wish to make your contracting experience in the Netherlands easier and more secure? Dutch Umbrella Company, a recognised IND partner and a specialist in payrolling, offers solutions specifically geared towards ensuring continuity of income in even the most flexible employment scenarios.

Daniël

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Daniël Wehnes

I always try to see how I can help any employee or employer with their needs, especially during times where a lot of job vacancies can't be filled locally. A...

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