New Rules on False Self-Employment in 2025

Starting in 2025, the rules around working with freelancers are changing, and this will have a significant impact on the beauty industry. Whether you run a salon and hire freelancers or work as a freelancer yourself, it’s crucial to understand what these changes mean and how to prepare.

Here’s what you need to know to avoid issues with tax authorities or unexpected fines!

What is False Self-Employment?

Many beauty entrepreneurs hire freelancers to handle busy periods or perform specialized treatments. However, if tax authorities determine that your freelancer is essentially working as an employee, it’s classified as false self-employment. This means that while the freelancer is treated as independent, they perform the same work as an employee without paying taxes and premiums required for employment.

Examples of false self-employment:

• The freelancer works fixed hours or days in your salon.
• You dictate how and with which tools the freelancer works.
• The freelancer works almost exclusively for your salon.

Under the new rules in 2025, the government will crack down on such arrangements.

What’s Changing in 2025?

• Stricter Criteria: Tax authorities will more closely scrutinize the working relationship between you and your freelancer.
• Increased Monitoring: Inspections will become more rigorous, and penalties for violations will be severe.
• End of the Online Module: The current self-assessment tool will be replaced with stricter evaluation methods.

If you hire freelancers, you’ll need to prove that they truly operate independently. If deemed false self-employment, you could face retroactive taxes, penalties, and obligations to pay social security contributions.

What Does This Mean for You?

1. Do you hire freelancers?

Ensure your collaboration meets the new criteria:

• Does the freelancer use their own tools and set their own conditions?
• Does the freelancer have multiple clients?
• Can the freelancer decide how, where, and when they work?

If not, the tax authorities might classify the relationship as employment.

2. Are you a freelancer yourself?

If you primarily work for one salon or client, ensure you have enough freedom in how you perform your work. Expanding your client base can help solidify your status as an independent professional.

How to Prepare

1. Review existing arrangements
   Is your freelancer genuinely operating independently, or is the collaboration similar to an employment contract? Adjust the agreement if necessary.
2. Consider an employment contract
   If a freelancer works for you on a long-term and regular basis, it might be more cost-effective and safer to hire them as an employee. This provides clarity and security for both parties.
3. Create clear agreements
   If you’re working with freelancers, draft a detailed contract outlining their independence, their ability to set their own rates, and their use of their own equipment.
4. Stay informed
   Rules and regulations are evolving quickly. Stay updated on the latest developments, and seek advice if you’re uncertain about your situation.

Some adjustments

The beauty industry thrives on creativity, flexibility, and hard work. The new rules surrounding false self-employment may require some adjustments, but with proper preparation, you can avoid unnecessary risks. Use 2024 as a transition period to review your collaborations and make a plan.

Do you have questions or need help adjusting your partnerships? Let us know! Together, we’ll ensure your business stays compliant and continues to grow successfully.

Let’s work smarter, not harder! 💄✨