Self-employed in the horeca sector: all you need to know

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The number of self-employed people in Belgium is rising year by year. And the hotel, restaurant and catering (horeca) sector is no exception. More and more chefs, waiters, and bar or restaurant managers are choosing to go freelance. Are you also considering becoming self-employed in this sector? In this article, we explain the advantages and disadvantages, and share our tips for getting off to a good start freelancing in the horeca sector.

Advantages of being self-employed in the horeca sector

First of all, let's look at why more and more people are opting for self-employment in the hospitality industry. Because being your own boss offers certain advantages:

• You gain flexibility. As a freelance waiter or chef, you decide your own working hours and days. Nobody forces you to work on a Sunday or public holidays if you don't want to, but you’re free to do so if it suits you – for example, if you’re self-employed in the horeca sector and you combine this with another job with more regular hours. And yes, when you’re self-employed, you choose when and how often you work.
  
• You can gain experience in several establishments. When you’re self-employed in the hospitality industry, you have more freedom not only in when you work, but also for whom. For example, as a freelance chef, you can easily combine a job in a brasserie with an activity as a private chef or caterer. Experienced waiters, sommeliers, and bar and dining room staff are in high demand, which means you can easily alternate jobs in the catering sector. This diversity will refine your skills and broaden your expertise.
  
• You set your own rates. Due to the significant shortage of staff in the sector, you can charge a higher rate, on average, than your salaried colleagues. Of course, you don't keep the full amount, because you pay taxes and social security contributions on your self-employed income. But you can deduct your professional expenses, which in turn reduces your taxes.
  
• You cost your employer less. In the horeca sector, in addition to salary, employers pay other costs when they have permanent staff, such as social security contributions, end-of-year bonuses, and holiday pay. In addition, if a salaried chef or waiter falls (briefly) ill, the employer still has to pay them. Hiring someone permanently is therefore relatively expensive. If you’re self-employed in the hospitality industry, your employer only pays you for the hours you work, and you don’t receive holiday pay or extra-legal benefits.

Disadvantages of being self-employed in the horeca sector

Of course, there are also downsides to being self-employed in the hospitality industry. So it's best to weigh up the pros and cons carefully before you take the plunge:

• A career being self-employed in the horeca sector involves a certain amount of financial uncertainty. You need to make sure you have enough work on a permanent basis to guarantee your income. Because when you're not working, you’re not earning; unlike your salaried colleagues, you can't count on a fixed salary. You don't receive holiday pay either, and you’re not paid if you're sick. So try to build up a reserve to cover unexpected expenses and quieter periods.
  
• You have more administrative obligations. As a self-employed chef or waiter, you spend time in the kitchen or serving in the dining room, but also behind your computer. Preparing invoices, networking, filling out timesheets, promoting yourself, recording your professional expenses, paying your social security contributions, filling out your tax return, and more. These tasks are also part of the life of a self-employed person in the horeca sector. Fortunately, tax and accounting software like Accountable will save you valuable time.
  
• As a general rule, pension and disability benefits for the self-employed are much lower than for employees. It’s therefore worth taking out additional professional insurance. As for liability insurance, it makes a lot of sense if you’re self-employed in the hospitality industry. So make sure you protect yourself properly.
  
• In the horeca sector, false self-employment is common. In theory, chefs, waiters and sommeliers who are self-employed enjoy a lot of freedom. But in reality, just because you’re self-employed in a catering establishment doesn’t mean you can organise your work as you wish. If your employer actually controls your work, this is called false self-employment. In these cases, the authorities will convert your self-employed contract into an employee contract, which could cost your employer dearly.

What’s the average hourly rate for a self-employed waiter or chef?

In Belgium, a salaried waiter earns at least €15 to €19 gross per hour, while a self-employed waiter charges around €20 to €25. And while a salaried cook earns at least €20 to €23 per hour, a self-employed cook typically charges an average hourly rate of €35 to €40.

These hourly rates vary greatly depending on their experience, location, and specialisation. For example, a waiter who’s also a certified sommelier or a chef who has made his mark in a Michelin-starred restaurant can probably charge a higher rate.

How to become self-employed in the hospitality industry

Are you currently working as an employee, but want to become self-employed or self-employed in a secondary occupation in the hospitality industry? Before you take the leap, there are a few smaller steps to take. Here are the main ones:

1. Develop a business plan

A business plan isn’t mandatory for self-employed individuals, or sole traders. But we recommend taking the time to think about the key aspects of your business:

• How will you position yourself as an independent cook, server or waiter, bar manager or maître d’? 
• Who are your ideal clients, and how will you target them? 
• What will your hourly and/or daily rates be? 
• What resources will you need to succeed? 
• What are your main costs going to be?
• Will you start as a self-employed sole trader, or will you set up a company?

2. Open a business bank account

Having a separate account for your self-employed business is not mandatory if you start working as a self-employed sole trader. But we highly recommend it, as it allows you to have a clear view of your income and expenses as a freelancer – especially if you synchronise your bank account with Accountable's accounting software.

3. Register with the Crossroads Bank for Enterprises (BCE/KBO)

Whether you’re self-employed in the horeca sector or any other sector, it’s always mandatory to register your activity with the Crossroads Bank for Enterprises (BCE/KBO). In return, you’ll receive a company number and officially become self-employed!

💡 Accountable tip: Become self-employed in the hospitality industry today with Accountable and Liantis. Register as self-employed and receive your VAT number by completing this form.

4. Join a social insurance fund

As a freelancer in the hospitality sector, you’ll now have to pay your own social security contributions. These payments are made every quarter to a social insurance fund such as Xerius, Liantis, Partena or Acerta. Joining a social insurance fund is mandatory.

5. Structure your administration 

Which program will you use to create your invoices? How will you keep your business expenses up to date? And how will you submit your VAT and tax returns? On our blog, you’ll find a wealth of free information to make your life easier. As for our software, it lets you easily manage your accounting, your taxes, and your VAT returns.

Discover all the steps to becoming self-employed in Belgium.

Try Accountable for free for 14 days and get off to a great start as a freelancer in the horeca sector.

Author - Valesca Wilms

As content marketing lead at Accountable Belgium, Valesca writes about freelancing, self-employment, and taxes based on her own experience as a freelancer.

Who is Valesca ?