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Getting started

The contract’s name is only the starting point.

Updated
Sources reviewed
Tax year
2026

Skatturinn judges whether a relationship is a contract for services or employment by its substance, not the contract's title: who directs the work and the hours, who provides tools and premises, who bears financial risk and whether work is done for more than one client. If the relationship is employment in substance, the client carries the employer's liability for withholding, social security and pension contributions retroactively.

Key figures

Criteria
direction, hours, tools, risk, number of clients
Liability if employment
the client becomes the employer
Charges that shift
withholding, 6.35% social security, 11.5% pension

Before you begin sending invoices, make sure the arrangement fits the work. Both parties benefit from a clear conversation about expectations, control and responsibility before the project gets underway.

Look at the whole arrangement

Skatturinn explains that contractor-versus-employee status depends on the circumstances and how the agreement works in practice. Control over the work, equipment, facilities and responsibility can be relevant. A single answer in a short checklist does not replace that overall assessment. Skatturinn: disguised employment.

Use these questions to begin a conversation, rather than to produce a verdict:

  • Who decides how and when the work is done?
  • Who provides the equipment and workplace?
  • What happens if work needs correcting?
  • What responsibility and financial risk does each party take?

Record what you agree

Describe the project, the deliverable and each party’s responsibilities. Compare the written agreement with the way you actually work. If they differ, discuss the gap before adding more projects or commitments.

When seeking advice, have the contract, work description and an accurate account of a typical working day ready. A broad question without context can produce an unhelpfully broad answer. Concrete details make it easier to discuss the arrangement properly.

Fustle’s role

Fustle helps you manage invoices and services within your chosen plan. A Fustle account, invoice or payroll calculation does not determine whether your relationship with a client is contracting or employment. Fustle does not become your employer.

Quick answers

Am I automatically a contractor if the document says “contractor agreement”? No. The circumstances and actual working arrangement matter.

Where should I go if I am unsure? Ask Skatturinn about tax treatment and obtain suitable advice on the agreement before relying on it.

Read the guide to getting started

Sources checked 23 September 2026. This is general education, not an assessment of your working relationship.

Frequently asked questions

Can I be a contractor for a single client?

Yes, but on its own that raises questions. The more indicators of independence there are, such as your own tools, your own time management, independent responsibility for the result and freedom to take other work, the stronger the contractor position.

What happens if Skatturinn reclassifies the relationship?

The client becomes the employer, liable for withholding, social security and pension contributions on the payments, often several years back with surcharges. The contractor can lose business expense deductions, and a VAT registration may have to be unwound.

How do I protect my position as a contractor?

A written contract describing the work and price rather than hours, your own tools and premises, invoices in your own name with VAT where applicable, several clients and genuine responsibility for the outcome.

Sources

General information, not advice on your situation. Skatturinn and other authorities assess each case. Check the review date and sources before relying on a figure.

Where does Fustle fit in?

Record the work and create the invoice. The service you choose determines the support included.

Explore Invoicing →Try the payroll calculator →