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Employee vs ZZP vs Result from Other Activities

Published
Updated
ByJolande Geerts

Short answer

These three categories are not just labels. They can change how income is taxed, which deductions may exist, whether VAT may matter, whether payroll should have been used, and how risky your filing position is.

The biggest mistake is choosing the category that feels commercially convenient. The safer approach is to ask what the work relationship really looks like in practice.

Who this article is for

This page is for:

  • expats doing side work, freelance work or project work in addition to salary
  • people who received income outside normal payroll and are unsure how it should fit
  • users deciding whether they are really self-employed or only doing occasional work
  • taxpayers who need a triage page before using the deeper employee, business and VAT articles

Why this distinction matters

A misclassification can create several problems at once:

  • the tax return may be wrong
  • payroll should perhaps have been used
  • VAT assumptions may be wrong
  • deductions may be overclaimed
  • the person may wrongly think they are a business owner when the facts do not support that

That is why this page should not say only “there are three categories.” It should help the user recognise the practical signals.

Start with the practical question: what kind of relationship is this?

Use this order.

1. Employee income

Start here if the reality looks like employment. Questions to ask:

  • does someone direct the work closely?
  • is there a structured employer–worker relationship?
  • are you effectively working inside someone else’s organisation rather than as an independent business?
  • is payroll or wage administration expected?

If the substance looks like employment, calling yourself a freelancer does not automatically make it business income.

2. ZZP or business income

This is the route people usually hope for, but it should be based on real independence. Questions to ask:

  • do you work for multiple clients or market yourself independently?
  • do you carry business risk?
  • do you organise your own work rather than being directed like staff?
  • do you invest in a genuine business activity rather than occasional paid help?

The more the work looks like an actual business, the stronger the ZZP route becomes.

3. Result from other activities

This category often catches people in the middle: there is income, but not enough structure or independence to treat it as a business, and not enough employment features to treat it as salary.

This is common with occasional assignments, side projects, one-off paid activities or income that is real but not part of a broader business setup.

A safe decision rule

Ask three questions:

  1. Does this look like employment in substance?
  2. If not, does it look like a real business with independence and business risk?
  3. If not, is it more likely occasional or miscellaneous income?

This rule is not a legal shortcut, but it stops the most common mistake: jumping too quickly from “not payroll” to “therefore ZZP.”

Red flags for misclassification

Be careful if:

  • you mainly work for one client under tight control
  • you use business language but have little real business risk
  • the work is too occasional to look like a real business
  • you are relying on the category mainly for a better tax outcome
  • payroll should perhaps have been used but was not

What to do now

If the relationship looks employment-like, start with the employee route and payroll questions.

If the work is genuinely independent and business-like, review the business, VAT and deduction articles together.

If the work is occasional or unclear, treat “result from other activities” as a serious possibility instead of assuming ZZP by default.

Why VAT and income classification are not the same question

Many users think: “I send invoices and maybe charge VAT, so this must be business income.” That is too simple. VAT treatment, KVK registration and income-tax classification overlap, but they are not identical tests.

A person can focus so much on the entrepreneur image that they miss the more basic question of whether the work is really employment-like, truly independent, or only occasional income.

If the work sits between categories, build a fact file first

If you are unsure, do not start with the label. Start with the facts:

  • how many clients you have
  • who directs the work
  • whether you carry real business risk
  • whether you market yourself independently
  • whether the work is recurring or occasional

That fact file gives you a much stronger basis for choosing the tax route than a commercial description such as “freelance” or “consulting”.

Common mistakes

  • assuming that sending invoices automatically means ZZP
  • assuming that no payroll means it cannot be employee income
  • forcing occasional income into a business category
  • choosing the category based on desired tax outcome rather than facts
  • forgetting that VAT questions and income-category questions are related but not identical

Official sources

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