Freelance hospitality: how to start

Good preparation is half the battle

Do you want to know if entrepreneurship is for you? With the KVK Krachtmeting, you can quickly and easily test your entrepreneurial skills such as negotiation, networking, and administrative skills.

If the answer is yes, you can put your plans on paper through a business plan. This increases your chances of success. You will investigate whether your plans are feasible. For example, it's important to know if your business will generate enough money to cover the costs. You can always ask us your questions. 

DBA Act and determination of employment

The Tax and Customs Administration determines whether you are an entrepreneur for income tax purposes and whether you are self-employed. This was supposed to be regulated by the DBA Act, but the enforcement of that law has been postponed until 1 January 2021.

Freelancers and clients are responsible for the relationship they enter into with each other. It all revolves around the question: are you a self-employed entrepreneur or is there an employment relationship? Are you unsure if you are working in employment? Avoid false self-employment and use a model agreement from the Tax and Customs Administration.

Determining the hospitality self-employed rate

Determining the right hospitality self-employed rate can be quite challenging. A rate that is too high can deter clients, but a rate that is too low undervalues your skills and may not generate sufficient income.

Do you want to calculate your minimum hourly rate? First, calculate how much you need per month to live on. Add your holiday allowance, income tax, health insurance contributions, and unforeseen expenses to this. Then calculate your business expenses, such as office rent, business equipment, business insurance, etc. These are your necessary income and taxes plus business expenses. Finally, divide this amount by the number of billable hours. The result is your minimum hourly rate!

Your experience and craftsmanship are, of course, also valuable and play a role in determining your hourly rate. Additionally, you could compare your hourly rate with those of your competitors.

How to limit your risks as a hospitality self-employed person/self-employed chef

As a hospitality self-employed person/self-employed chef, you are responsible for your risks and therefore for taking out any necessary insurance. You also need to consider building up your pension. We have listed the main risks for you:

• Disability
• Business liability
• Professional liability
• Legal assistance
• Pension

Registering your business with KVK

If you meet various entrepreneurial criteria, you must register as a hospitality self-employed person/self-employed chef with KVK. You can check directly whether you need to register your business with KVK.

You register by appointment at one of the KVK offices. After your registration, KVK forwards your details to the Tax and Customs Administration. The Tax and Customs Administration will send your VAT ID and turnover tax number by post within 2 weeks.

Choosing the right legal form

During your registration, you must indicate which legal form you want to start with. Most self-employed persons start with a sole proprietorship and, in some cases, a private limited company (bv). The choice of legal form has, in addition to fiscal consequences, implications for your liability. Therefore, it is wise to find out which legal form suits you best.

Setting up administration as a hospitality self-employed person/self-employed chef

Bookkeeping and administration are probably not your favourite activities as a hospitality self-employed person/self-employed chef. Unfortunately, maintaining proper administration is legally required. For example, your invoices and quotes must meet various requirements.

Your administration provides insight into how your business is doing. You may outsource your administration, but you can also do it yourself. Fortunately, there are handy apps and accounting programs for this.