Strict self-employment rules hitting tax office in freelancers hired for benefits scandal
The Dutch Tax Authority's benefits division faces a major setback in resolving the childcare benefits scandal. Hundreds of freelancers hired to process compensation claims will likely be forced to stop working after it was revealed they are not legally considered self-employed. The agency had previously promised to cover any potential fines or tax reassessments, but that guarantee is now being withdrawn.
The sudden policy reversal is expected to result in the departure of a large number of freelancers and further delays in the compensation process. "This will obviously have consequences," tax officials wrote in an internal memo obtained by RTL Nieuws.
Of the 2,100 employees working on the benefits scandal, approximately 600 were hired as freelancers. Many of them were recruited through intermediaries, who are now expected to withdraw their personnel.
The Ministry of Finance had already concluded that many of these freelancers were engaged under conditions that constituted false self-employment. "The impact will vary from team to team," the internal memo warned.
Despite being aware of the issue, the government had previously decided to keep the freelancers on staff, arguing that it was an "exceptional situation" requiring urgent action to compensate victims of the benefits scandal. Former State Secretary Idsinga emphasized that these workers were essential to maintaining the pace of the process.
However, the Dutch Tax Authority has now acknowledged that covering potential fines and tax reassessments for freelancers would violate tax laws. As a result, the guarantee will be revoked as of April 1.
The VVD party had previously warned of significant problems with the enforcement of freelancer regulations. Member of Parliament Thierry Aartsen said his concerns have now been realized, with a substantial number of freelance workers expected to be forced out.
"This is dramatic for the freelancers themselves, but also for the people still waiting for their claims to be processed," Aartsen said. "The resolution of the benefits scandal will take much longer if so many people are forced out."
Aartsen urged the government to act swiftly. "I believe that Minister Van Hijum of Social Affairs must provide clarity that freelancers can continue working and that they are not being unnecessarily pushed aside."
The benefits division has urged intermediaries to inform them as soon as possible if they plan to withdraw workers. "The sooner we know, the more time we have to fill the gaps," officials said.
