Not a fancy subject this time: undeclared work or working black in the Netherlands. However, an important one. If you are thinking about renovating your house, you may phase this question: Do you want the work done partly undeclared or not?
Why this blog?
The answer is: every time I advise people about renovating their house, this subject is mentioned. Especially, with construction work, it is kind of normal to work (partly) undeclared.
However, there are many risks involved, and I am not a fan of this.
5 things you need to know about undeclared work in the Netherlands
1. It is common
In 2019 approximately 400,000 people worked undeclared (source NOS). Cleaning was the most favourite job. After that, construction work.
2. Everyone is obligated to pay taxes
If you don’t do it, others need to do it for you.
3. If something happens, you are responsible too
When you hire someone to do undeclared work for you, you are responsible. There are no insurances which covers damage.
4. The worker itself doesn’t save for future retirement
In the Netherlands, by working, you save automatically for your retirement. This is not the case with black working, of course.
5. You have a chance to being fined
The fine can be up to €4000.
6. No guarantees on the work done
Maybe, this one is logically. But what happens when something went wrong?
7. And the only advantage: you save money
You save 21% VAT with undeclared work in the Netherlands. And maybe something extra because of the social contributions.
So what do you choose? Saving money or security?
Do you want to know more about renovating your house? Check this blog.