Starting as an IT freelancer is exciting, and you learn a lot through trial and error. But some mistakes cost you needlessly much money or get you into trouble. Which pitfalls do I see starting freelancers walk into time and again?
In this article I share the seven mistakes starting IT freelancers make most often, and how to avoid them. From a rate that is too low to underestimating the Dutch DBA Act risk. Learn from others' mistakes, then you do not have to make them yourself.
This blog is for IT professionals who have just started as freelancers or will soon: cloud, network, DevOps and security engineers.
I place freelancers and speak to many starting ones, so I see these mistakes up close. No judgement; everyone makes them. The point is that you can avoid them.
What are the most common mistakes as a starting IT freelancer?
Most mistakes revolve around three themes: underestimating your rate, underestimating your costs and safety net, and ignoring the Dutch DBA Act risk. In addition, there are practical slip-ups around admin, spread and negotiating. Below I walk through the seven most important.
Mistake 1: charging a rate that is too low
The classic. Many starters convert their old gross hourly wage into a rate, and end up far too low. Your rate must not only cover your income, but also tax, insurance, pension, non-billable hours and business costs. Do not underestimate that.
Set your rate from your desired net income, and calculate back with all your costs included. A rate that is too low is also hard to raise later with the same client. So start well. Want to know which cost items play a role? Read our blog on what you keep net as an IT freelancer.
Mistake 2: not arranging your safety net
Many starters postpone insurance and pension, because it costs money and feels far off. But if you drop out without disability insurance, your income falls away immediately. And without pension build-up, a gap arises for later. Arrange your safety net from the start.
Cover your biggest risks first: long-term incapacity and liability. Build the premiums into your rate, so they are covered. Want to know which insurances you need? Read our blog on that.
Mistake 3: ignoring the Dutch DBA Act risk
Since 2025, the Dutch DBA Act is actively enforced, and many starters underestimate that. If you work long-term and full-time for one client, embedded in their team, you run the risk of being seen as a disguised employee. That affects you and your client.
Spread your work across multiple clients where possible, and watch the signals of employment. If you do work long-term for one client, consider a construction like the intermediary construction. Want to know what risk you run exactly? Read our blog on the Dutch DBA Act risk for freelancers. [INTERNAL LINK 3]
Mistake 4: putting everything on one client
One large, long-running assignment feels safe, but makes you vulnerable. If it stops, your whole income falls away. And one client with nearly all your revenue is also a Dutch DBA Act risk signal. Dependence on one client is more dangerous than it seems.
Aim for spread across multiple clients, even if that is hard at first. It makes you financially more stable and strengthens your position as a self-employed person. Combine channels to find assignments, so you are never dependent on one source.
Mistake 5: letting the admin slide
Invoices, VAT returns, your time registration and your admin: it is not the most fun part, but neglect costs you money and stress. Invoicing too late harms your cash flow, and messy admin causes problems at tax time.
Set up a simple system from day one, or engage an accountant. Set money aside for tax directly with every invoice, so you are not caught by surprise. A good accountant often pays for themselves in saved time and prevented mistakes.
Mistake 6: not negotiating your terms
Many starters accept the first offer and sign what they are presented with. But negotiating is part of entrepreneurship, not only about your rate, but also about your terms, liability and replacement arrangement. Those who do not negotiate leave money and good agreements on the table.
Moreover, negotiating is a signal of genuine entrepreneurship under the Dutch DBA Act. A freelancer who simply signs a standard contract looks more like an employee. So dare to have a say in the content of your assignment; it is part of the deal and it strengthens your position.
Mistake 7: stopping developing yourself
In IT, knowledge ages quickly. Starting freelancers are sometimes so busy working and acquiring that they let their development slide. But your knowledge is your earning model. Standing still means your rate and employability decline over time.
Reserve time and budget for training and certification, even if it yields no billable hours in the short term. It keeps your rate up and your profile sought-after. See it as an investment in your own business, because that is what it is.
Frequently asked questions about starting as an IT freelancer
What is the biggest mistake of starting IT freelancers?
Charging a rate that is too low, often followed by underestimating costs and safety net. Many starters convert their old wage and forget tax, insurance, pension and non-billable time. Set your rate from your desired net, and you avoid this mistake.
How do I avoid Dutch DBA Act problems as a starter?
Spread your work across multiple clients, avoid full embedding at one client, and watch the signals of employment. If you work long-term for one client, consider the intermediary construction. Demonstrably operating as an entrepreneur is your best protection.
Do I need an accountant straight away?
It is not mandatory, but for most IT freelancers an accountant pays for themselves. They prevent mistakes in your return, save you time, and advise on deductions and your rate. Especially at the start, that gives peace of mind and prevents expensive slip-ups.
When should I raise my rate?
Do not start too low, because raising with the same client is hard. Reassess your rate periodically, and raise it for new assignments when your experience and scarcity justify it. Staying market-based is more important than clinging to a starting rate that is too low.
How do I find enough assignments as a starter?
Combine channels: your network, professional platforms, and possibly an intermediary who searches for you. Spread prevents you depending on one source. Especially as a starter without a large network, an intermediary can help you to a stable flow of assignments.
Conclusion: learn from others' mistakes
Most beginner mistakes revolve around underestimating your rate, underestimating your safety net and costs, and ignoring the Dutch DBA Act risk. Plus practical slip-ups around spread, admin, negotiating and development. Each one avoidable if you know about it.
For whom is this most urgent? For IT professionals who have just started or will switch soon. For whom less? For experienced freelancers, though it never hurts to hold your own practice up against it.
My advice: start professionally. Set a good rate, arrange your safety net, spread your work, and keep developing. Those who start as an entrepreneur instead of a disguised employee stand stronger from the off.
Want to get off to a good start as an IT freelancer?
Want to spar about how to start professionally and stably as an IT freelancer, and how to find assignments? Plan a no-obligation call with me. I think along peer-to-peer.
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Note: this article is general information, not financial, tax or legal advice. For your situation, consult an accountant, financial advisor or lawyer. Regulations around the Dutch DBA Act may change; consult rijksoverheid.nl or belastingdienst.nl.
