Netherlands "Full-Time Contract" advice please.

[blstr]

Hi there,

This is going to be a long post, I apologise in advance. I have searched, but cannot find anything matching my query ...

Current situation:
Have been in permanent employment for the last 18 years (4 different companies), steadily getting more senior in my current skill set. My current company has just been bought out by a larger one & the retrenchments have started & I'm for the chop. I've been looking around for another permanent position, but in the meantime have been offered a "full time contract" in the Netherlands and am wondering if it's worth it ...

Specifics:
Current package is £54k base + ~£30k bonus for an average of £75k over the last 5 years.
On offer: EUR 650 per day, but I carry all expenses myself.

Role is for an in-house Developer/System Admin (40% Development/60% Admin) so it's technically LESS demanding than what I'm used to. However this is NOT for a project, so for all intents & purposes (Tax!) I'll be an employee.

Plan:
I commute weekly, family stays here in England. I will definitely be there well over 183 days per year ...
According to the client I would qualify for the 30% rule (so I only pay Netherlands taxes on 70% of the income)

Fag packet calcs (in EUR):
650 / day * 40 weeks = 130k / year
70% taxable = 91k => Tax = 39k (Income Tax + Social Security)

Available = 130k - 39k = 91k

Accommodation (650/month * 12) = 7,800
Travel (weekly return to UK) (300/return * 50) = 15k
Food, etc (30/day * 5 * 50) = 7,500

Take home: EUR 60k * .86 GBP/EUR = £51.6k = £4,300 per month (out of which I'll be funding my own pension + insurance)

Assumptions:
A. Forming a company (UK or NL) won't offer any advantages as I'm not doing project work & not working for multiple clients
B. Other than the 30% rule, no deductions will be allowed for tax (because that's what the 30% is for)
C. Double taxation won't be an issue (big assumption, I know, but I took the Gross, less the expenses & did a UK tax calc & it was less than the NL one, so I'm assuming I won't pay any extra)
D. No "war-chest" issue as I have a sizeable one already
E. 40 weeks of work, but 50 weeks of expenses ... (This is pessimistic as the client assures me it's a full time post)

Questions:
A. What have I totally missed the boat on?
B. I'll be paying social insurance in NL ... would I still need to pay NI here? That would set me back another ~£5,8k
C. Does my assumption about not forming a company make sense?
D. Are there any other big NL expenses NOT included in my calcs?
E. Should I / Shouldn't I?

[GhostofTarbera]

I did the same for 5 years

You will be liable for additional NL taxes (NI, healthcare other guff)

You will be left with around 55% max when you get your 1st payslip - on this standard model

Accommodation ? Are you planning to stay in a shared big room with tramps for £650 a month then possible - if not budget £100 a night for citizenm budget hotel

You will need to take the most expensive flights of the week 1st flight Monday morning and home Friday afternoon - I think my average was £500 a week unless you book 3 months in advance (also how are you getting to the airport - add extra for parking or taxi at 3.30 am in the morning) - when you arrive at work around 9.30 if Amsterdam you will be walking dead by about 3.30pm


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[jmo21]

You've put in some effort to try and figure out the necessary calculations which is good, and I'll leave it to others to point out any issues.

But...... why Holland? Why rush?

Why not try and find something local, or at least UK commutable for your first contract?

[Lance]

working abroad and commuting weekly I'd usually say it's about £3k a month expenses. That's based on actually working away for an extended period.

You have it worked out at just over £1k a month. That's way short of the mark. I spend £1k a month in expenses when staying away 2 nights a week.
OK. I drink a bit, but I do stay in sh*tehole hotels.

650EUR a day, in Holland, vs. £75 a year. No contest. Stay perm (or better, find a 650 a day contract in the UK).

[blstr]

I did the same for 5 years

You will be liable for additional NL taxes (NI, healthcare other guff)

You will be left with around 55% max when you get your 1st payslip - on this standard model

Accommodation ? Are you planning to stay in a shared big room with tramps for £650 a month then possible - if not budget £100 a night for citizenm budget hotel

You will need to take the most expensive flights of the week 1st flight Monday morning and home Friday afternoon - I think my average was £500 a week unless you book 3 months in advance (also how are you getting to the airport - add extra for parking or taxi at 3.30 am in the morning) - when you arrive at work around 9.30 if Amsterdam you will be walking dead by about 3.30pm


Sent from my iPhone using Contractor UK Forum

Thanks for the reply.

1. Accommodation. No, there are plenty of private rooms in shared flats available for under EUR 650 / month (Rotterdam). I've been researching this a LOT. The EUR 650 includes bills. As I'll be there on a long term basis I'll be looking at a long term rental agreement which can be had a lot cheaper than booking a week at a time, etc. I'm a quiet type and don't need luxury or night-life.
2. Flights can be had quite cheaply if you are prepared to travel light and be crammed (and I'm short, so no leg-room issue). Also I'd be flying out on Sunday evenings & back on Friday evenings. And yes, the to/from airport is included in that. OF COURSE there would be times when cheaper flights are not available, but then I can just skip coming home that weekend.

I'm most interested in your "additional NL taxes", could you please elaborate. The only "additional" I'm aware of is the Health Insurance, and that's not THAT much (EUR 100 to 300 per month depending on options). When you say "NI", you're talking UK NI, or something else? I have included NL Social Security in my tax calc already.

[Eirikur]

Where in NL will you be contracting as cost of living will differ and cost of flights may be cheaper to regional airports
Setting up a Dutch company (BV) won't make much sense for one contract as this is more difficult then a ltd in the UK, besides that the Dutch version of IR35 is more strict then the UK one at the moment and some big banks, that I know of only offer on payroll contracts because of it.
Private health insurance is mandatory and depending on the package would set you back around €1000-2000 per year
You won't have to pay NI in the UK, but you won't be building up state pension for that period.

Last but not least in case of hard brexit, your right to work may be withdrawn immediately

[blstr]

You've put in some effort to try and figure out the necessary calculations which is good, and I'll leave it to others to point out any issues.

But...... why Holland? Why rush?

Why not try and find something local, or at least UK commutable for your first contract?

I'm not rushing it ... I'm investigating. I haven't decided to go for it at all, just trying to find out if it's worth it.

[wattaj]

I lived and worked in the Netherlands between 1998 and 2000. My accommodation was circa £1500pcm, but it was worth it (the top two floors at 650 Prinsengracht ) .
Things will obviously have changed, BUT don't underestimate the cost of accommodation and the fees charged by leasing agents in finding you somewhere to stay; likely one month's rent.

[blstr]

working abroad and commuting weekly I'd usually say it's about £3k a month expenses. That's based on actually working away for an extended period.

You have it worked out at just over £1k a month. That's way short of the mark. I spend £1k a month in expenses when staying away 2 nights a week.
OK. I drink a bit, but I do stay in sh*tehole hotels.

650EUR a day, in Holland, vs. £75 a year. No contest. Stay perm (or better, find a 650 a day contract in the UK).

I'd love to see a breakdown of what that £3k entailed.

1. accommodation (incl energy, property taxes of whatever sort & internet)
2. travel
3. food
??? Anything else ???

As far as lifestyle is concerned ... I'm low maintenance ... I don't drink (alcohol) at all, don't do the party/nightlife scene. My favourite activity is reading, so all I need for that is a comfy chair and some quiet music.

Re the estimation of accommodation expenses ... I WON'T be staying in hotels. If you read my OP, I'll be working for ONE client at ONE location so can get a long-term private room in shared accommodation ... they CAN be had quite cheaply.

Also, as stated in my OP, yes, I'd prefer perm here in the UK & have some possibilities, but I'd still like to investigate my options. I'm at a place in my life when I don't NEED a monthly income, so a bit of uncertainty is OK.

[blstr]

I lived and worked in the Netherlands between 1998 and 2000. My accommodation was circa £1500pcm, but it was worth it (the top two floors at 650 Prinsengracht ) .
Things will obviously have changed, BUT don't underestimate the cost of accommodation and the fees charged by leasing agents in finding you somewhere to stay; likely one month's rent.

Yes, thanks ... I'm actually budgeting 2 full months rent as a fee/deposit & assuming it'll be an expense, not returned at the end. That way anything less is a pleasant surprise.