Anyone contracting in the Netherlands or know about the tax system?

**stek** · 22 January 2016, 17:44

Think of it as a Dutch Umbrella, someone has to pay the ER NI and it's not gonna be the payroll company....

**fuzzypenguin** · 22 January 2016, 18:50

Originally posted by stek View Post

Think of it as a Dutch Umbrella, someone has to pay the ER NI and it's not gonna be the payroll company....

OK cheers, I thought I was working directly with the company, so they would be paying the employers NI and the agency were getting their cut directly from the company too. Rather than it working like in the UK. So the company would be making 2 payments instead of 1 to the agency. That makes sense I suppose, not too happy about the extra €800ish per month I'm going to be paying though.

**Brussels Slumdog** · 22 January 2016, 21:08

You need to take out private medical insurance as well as well as employee NI . This is the same principle as in Switzerland.

**Boo** · 23 January 2016, 13:00

Originally posted by fuzzypenguin View Post

The salary is based on 12 months which is fine and comes to €122200 for the year, that's fine

Based on a 37.5 hr week and a 48 week year that's £51 per hour and "fine" is that last adjective I would apply.

I don't know what your setup is FP, do you have a home in the UK too ? Scale rates for the Netherlands (see this .pdf link) vary from €220 to €280 per day which means your subsistence costs will be of the order of £22 to £28 per hour (based on a 7.5 hour day) ?

So your gross position is you will be working for £23 to £29 to per hour at best and IMO anyone with a UK base will go bust quick-style working abroad at that rate. But feel free to prove me wrong and post back here when you've made your first £1M

Boo

**zip** · 26 January 2016, 08:09

I did a 6 month stint in NL during 2015. I opted for the route of using my own UK limited co, the drawback being I was limited to 183 days (6 months) in NL otherwise there was significant tax implications. I.E. - you don't apply for the 30% rule as you continue to pay UK tax/NI but after 186 days you'll start to owe the NL authorities tax contributions (back dated from start date) at a higher rate than UK. But you can't then go and apply for the 30% rule as there is a 3-4 month deadline from starting.

Was totally worth it for me though as I only stayed 6mo but I strongly recommend some hand holding to set it up. What you need to explore is UK LTD co + VAR (registering as a freelance in NL).

I had issues with my agency when I took this route, NL have a chain of liability rule, so if you don't pay your taxes owed they come after the agency and then the client. So they were worried about the post 6 month implications if I decided to stay + that I could only feasibly do 6 months but client wanted someone who was able to extend. I was firm, stating that it was the only way I could afford that gig.

Speak to Martijn at Hilfort, I promise you that you won't be dissappointed. I literally rang everyone I could find about the matter and they either wanted to charge me for the advice or gave me some unrealistic expectations. Give this guy a call and make your own mind up. And if you decide to go the umbrella route a number of my colleagues switched to these guys, ask them about a realistic take home, iirc it's around 64%.

Good luck - and I hope the euro doesn't dive massively like it did when I was there!

**Eirikur** · 26 January 2016, 08:58

Lived in the Netherlands for 39 years. The taxes are so ridiculously high and daily rates so low, it made me emigrate to the UK.
There is no way a contract can be more profitable in NL, there are always contracts with higher rates local to you in the UK and no need to rent an expensive expat accommodation.
Add to that the annoying and rude Dutch people I recommend you to stay away from it if you can. Most British expats come back screaming within 3 - 6 months
(I know you will ignore this, but I also know in 1 year time you will say "yes you were right")

**hunkydorey** · 26 January 2016, 13:05

Hotel accom is pretty expensive too especially amsterdam and the hague

**darmstadt** · 26 January 2016, 15:59

Originally posted by Eirikur View Post

Lived in the Netherlands for 39 years. The taxes are so ridiculously high and daily rates so low, it made me emigrate to the UK.
There is no way a contract can be more profitable in NL, there are always contracts with higher rates local to you in the UK and no need to rent an expensive expat accommodation.
Add to that the annoying and rude Dutch people I recommend you to stay away from it if you can. Most British expats come back screaming within 3 - 6 months
(I know you will ignore this, but I also know in 1 year time you will say "yes you were right")

A bit weird. My last contract in the Netherlands was a 3 figure Euro hourly sum plus expenses and no tax needed to be paid there due to a tax agreement with Germany. Just some paperwork to prove I was resident in Germany and away I went. The contract was not bad and got on well with the Dutch guys and I've worked a few times since in Holland and had no problems...Everyone has a different experience

**Boo** · 29 January 2016, 13:24

Originally posted by Stevie Wonder Boy

I still have Dutch friends from my time over there. They are pretty different in odd and strange ways,

More, please ?

Boo

Anyone contracting in the Netherlands or know about the tax system?