Who gets the tax?

[Advocate]

I'm currently contracting (and living) in NL and considering negotiating the possibility of working from the UK (ltd) remotely and travelling perhaps 2-3 days per week to the Netherlands.

Anyone know what the tax implications are? I guess I'll be UK tax resident, do the Dutch get any cash?

Cheers

[KevinS]

You will more than likely have to work through a Dutch umbrella and they take all the tax..

I just got off the phone with a pimp who wants to put me forward to company over there and they insist I cannot work through my limited..

[Moscow Mule]

Depends how long you're going to do it for. I sold my consultancy services & some bespoke software into a bank over there (using my UK Ltd).

Took about 2 months to write and deliver - all on site.

Never had any hassle from the Nederlanderische Revenue & Customs.

If the company you're working for are ignorant of the rules/risks you may get lucky and not have to use a Dutch umbrella.

[BlasterBates]

I'm currently contracting (and living) in NL and considering negotiating the possibility of working from the UK (ltd) remotely and travelling perhaps 2-3 days per week to the Netherlands.

Anyone know what the tax implications are? I guess I'll be UK tax resident, do the Dutch get any cash?

Cheers

If you've been working and living in the Netherlands, you'll be liable for Dutch tax. Working through a Ltd does not exempt you from Dutch tax, and the fact you've been in the Netherlands means you can't claim the 183 day rule, as you already spent 5 months of the current tax year in the Netherlands.

You will be both UK and Netherlands tax resident as you'll qualify in both countries; this is normal, don't presume you're only tax resident in one country; this is generally not the case.

If your UK company only does business in the NEtherlands then there is no corporation tax to pay in the UK, in fact the Ltd company should be registered in the Netherlands not in the UK for tax purposes, to not do so will be illegal in the Netherlands.

For personal tax you'll have to declare income from the Netherlands in the UK. If you pay yourself in divi's then it gets complicated, as this will be taxed according to the Netherlands-Uk tax agreement on capital related income.

If you are paid a salary in the Netherlands then this will have to be declared in the UK but will not be taxed directly (EU law), it will however determine the rate at which other income is taxed in the UK.

[Advocate]

Ok,

Thanks for that, it looks like the best option is to continue using a Dutch payroll company and claim relief under double taxation?

If that's the case, what happens to the 30% ruling and are HMRC going to want a cut of my tax free sum?

[expat]

Ok,

Thanks for that, it looks like the best option is to continue using a Dutch payroll company and claim relief under double taxation?

If that's the case, what happens to the 30% ruling and are HMRC going to want a cut of my tax free sum?

As often happens in tax matters, if you ask the right question then the answer is evident. The right question is usually, how does the taxman see it?

1. Dutch taxman. He agrees not to make you pay tax to him on 30% of your income.

2. UK taxman. He taxes you on all your income, but gives you a credit for tax you actually paid to the Dutch.

Unfortunately the answer is not pleasant. At worst, the Dutch taxman is handing tax on 30% to Hector, not to you. At best, even after the 30% rule, your Dutch taxes are still so high that they are still just about the level of UK tax anyway, i.e. not much more to pay to the UK.