The flexible labor market has changed dramatically since 1 January 2025. Since then the Tax Administration actively checks for bogus self-employment on the basis of the DBA law. And that has major consequences for organization that work with self-employed professionals. Although the legislation is not new, the announced enforcement means that organization u tic must take action.
The impact is already noticeable. Recent studies show that the number of applications from self-employed contractors has fallen sharply, in some sectors by tens of percent. “Many organizations have become risk-averse,” says Martin Westerhof, commercial director at Circle8, a specialist in hiring independent professionals in the higher segment of the labor market. “But that is not always necessary. With the right approach, the use of self-employed contractors remains possible, especially in staff functions and in project-based work.”
Together with Arno Pronk, director New Business at Circle8, he stresses that organizations now need to take a closer look at the way they use freelancers. “It’s about being able to demonstrate that there is no case of pseudo-self-employment. That requires a different approach to assignments and a well-thought-out hiring policy. The time for a laissez-faire approach is over.”
Internal training
Circle8 has developed a three-track approach for this. First, internal employees are trained in the new developments. In addition, self-employed professionals are informed via webinars. And as a third track the company analyses ongoing contracts and advises clients about necessary adjustments. The company itself recently had a visit from the Tax Authorities and complied with the applicable guidelines. “We look at the overall context,” Pronk explains. “Is there a concrete assignment with clear end points? Is specific expertise being deployed? Does the professional have sufficient freedom in execution? All these aspects must be right, both on paper and in practice. Moreover, you must document this well for any audits by the Tax Authorities. And a holistic approach is crucial. The tax authorities apply the principle ‘substance over form’. So converting a temporary position into a project must not only be correct on paper, but also in practice.”
Don't wait any longer
The company has been active since 1986 as a partner for the external hiring of professionals. Circle8 is a broker, intermediary and offers RPO (recruitment process outsourcing) and MSP (managed service provider) services. Westerhof emphasizes that there are alternatives if a freelance arrangement proves not to be possible. “From secondment to a billable-hours BV: there are always solutions. The most important thing is that organizations take action now and stop hesitating. The time for waiting is over.”
Circle8 guides organization in this change process. “We have the expertise and experience to steer organizations through this transition”, says Pronk. “But it does require a proactive attitude from all parties involved. Only then can we ensure a smooth transition to the new regime.
For completeness, here is the link to the complete FD edition ' Future of Finance & Tech '
