David owns and runs a hunting and fishing shop with four employees. He has been contacted by the local evening school, which wants him to teach students seeking a hunting licence. He will have to teach one or two groups of students. Each group is expected to need eight to ten evenings of instruction in order to qualify for a hunting license, which comprises a practical and theoretical test. David is paid DKK 1,250 per evening class. David has to prepare teaching materials, whereas advertising and teaching facilities will be provided by the evening school.
David is taxed as self-employed on the income he derives from his hunting and fishing shop, as he runs this business at his own risk.
The income from the evening classes represents salary/wages for David. He receives a fixed fee per evening class, irrespective of the number of students. David does not incur a financial risk because he receives a fixed fee. Furthermore, David has no operating expenses exceeding what is considered normal for an employee.