Is an interim manager a self-employed person? The legal status explained

The question of whether an interim manager qualifies as an independent contractor is not always easy to answer. Legally, an interim manager can indeed operate as a ZZP (independent contractor without staff), but this is not automatically the case. To be considered a true ZZP’er, the interim manager must meet several criteria used by the Tax Authorities.
Important characteristics that point to independent entrepreneurship are: working for multiple clients, making independent acquisitions, using own company resources, and above all – having a large degree of freedom in the execution of activities. The interim manager must be able to determine for himself how the assignment is carried out, even if the client determines what is to be done.
When an interim manager works for one client for a long period of time, according to fixed working hours, and is given direct control over the working method, this may indicate a disguised employment relationship, also called “false self-employment. In that case, the tax authorities consider the working relationship to be an employment relationship, with all the associated obligations for employer and employee.

What are the main differences between an interim manager and a regular freelancer?

Although interim managers often work as independent contractors, there are some distinctive differences between an interim manager and other types of independent professionals. An important distinction is in the type of assignments and the level at which they are employed.
Interim managers are typically hired for specific leadership or strategic positions, often at the management or board level. They bring specialized expertise and experience that is temporarily needed within an organization. Their assignments are usually results-oriented and have a clear start and end point, linked to the achievement of predetermined objectives.
In terms of contract form, interim managers usually work on the basis of an assignment agreement, which sets out specific results and responsibilities. Their fee structure is often higher than that of other self-employed professionals, which is related to their specialized knowledge and the strategic level at which they work. Typically, interim managers are paid per day or per project, not per hour like many other freelancers.
In terms of integration within organizations, interim managers occupy a special position. They are temporarily part of the management team and have a leadership role, but retain their independent status. This requires careful delineation of the working relationship to avoid false self-employment. Under current guidelines, a clear distinction must be made between self-employed persons and employees, for example by not allowing self-employed persons to sign up for personnel arrangements or inviting them to non-work-related meetings such as team outings.

What tax advantages does an interim manager have as a self-employed person?

When an interim manager is classified as a true independent contractor, this brings several tax advantages. These benefits make it financially attractive to operate as self-employed, despite the greater responsibilities and risks.
One of the most important tax schemes is the self-employment deduction. Interim managers who meet the hour criterion (spending at least 1,225 hours per year on their business) can deduct an amount of €5,030 from their profits in 2023. In addition, there is the SME profit exemption, which allows 14% of the remaining profit (after deduction of the self-employment deduction) to remain untaxed.
For investments in business assets such as computers, software or office equipment, interim managers can make use of the Small Scale Investment Deduction (KIA). This allows them to deduct a percentage of the investment amount from their profits.
In addition, self-employed persons have the option of building up a fiscal old-age reserve (FOR), with which part of the profits can be reserved for retirement. They can also deduct business expenses, such as home office space, business travel expenses, and continuing education, from taxes.
It is important to note that tax regulations change regularly. For example, the self-employment deduction has been gradually reduced in recent years and this trend will continue until 2036. For highly skilled professionals such as interim managers, it is therefore advisable to seek regular advice from a tax professional.

What about the DBA Act for interim managers?

The Deregulation of Assessment of Employment Relationships Act (Wet DBA) has a major impact on how interim managers can carry out their assignments. This law, introduced to replace the VAR declaration, aims to combat false self-employment and provide clarity on when an employment relationship exists.
For interim managers and their clients, it is essential to draw up a clear agreement that guarantees the independence of the contractor. The Tax Office looks at various aspects of the working relationship, guided by the principle of “substance goes before appearance.” This means that the actual working relationship weighs more heavily than what is on paper.
Important criteria used by the Inland Revenue in assessing the working relationship are:

• The degree of authority and instructional power of the principal
• Whether there is an obligation of personal labor
• The manner in which compensation is determined (hourly rate vs. outcome pay)
• The possibility of replacement by another
• The freedom to determine work hours and work location yourself
• Bearing entrepreneurial risk

To be sure of your position as an interim manager as a self-employed person, it is advisable to work with model agreements approved by the tax authorities. Note that practice must correspond to what is stated in the agreement. As of January 1, 2025, there will be active enforcement on false self-employment, which means that both clients and interim managers should already take measures now to shape their working relationship correctly.
Some practical tips to prevent false self-employment are:

• Allow the interim manager to determine how the work is done
• Put the focus on results, not the work process
• Apply a minimum rate (probably €33 per hour from 2025)
• Offer the possibility of substitution
• Avoid fixed work hours and a fixed workplace if possible

The pros and cons of working as a ZZP in interim management

Working as a freelancer in the interim management industry brings with it specific benefits and challenges. For professionals considering taking this step, it is important to know both sides of the coin.
Advantages:

• Flexibility and autonomy – As a freelancer, you decide which assignments you take on, which clients you work for and how you schedule your time.
• Higher rates – Interim managers can typically charge higher rates than what they would earn as employees, which compensates for periods without an assignment.
• Professional development – By working at different organizations, you gain broad experience and continue to develop.
• Tax benefits – As discussed earlier, there are several tax benefits associated with self-employment.

Disadvantages:

• Uncertainty – There is no guarantee of a steady flow of orders, which can lead to periods without income.
• Acquisition yourself – As a self-employed person, you are responsible for bringing in new business, which takes time and energy.
• Administrative burden – You have to keep your own records, file tax returns and arrange insurance.
• No social security – You have no access to employee insurance such as unemployment or health insurance unless you take out private insurance for it.
• Pension accrual – You have to take care of your own pension accrual, which requires discipline and financial planning.

Choosing to work in interim management as a self-employed professional best suits professionals who need freedom and variety, and who are willing to accept the associated risks. It requires entrepreneurial skills in addition to professional expertise.
To be successful as an interim manager, it is important to build a strong network, to continuously invest in your own development, and to be well advised on the legal and fiscal aspects of being self-employed.
At WerfSelect, we help both interim managers and organizations make the right choices regarding temporary filling management positions. We offer advice on contract forms and, if the deployment of a ZZP’er is not possible, we can offer alternative solutions such as secondment.