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Q: Living in the UK, working in The Netherlands

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    Q: Living in the UK, working in The Netherlands

    Hi everyone,

    I have been offered a job to work for a company in The Netherlands. I can work from home (in the UK) and from the office location in The Netherlands (alternating weeks). The agency came up with a model that would:
    • pay my £ daily rate to my UK Limited company for the days worked in the UK
    • put me on a Dutch payroll for the days worked in the Netherlands (-30%)
    • the Dutch income would be tax exempt in the UK (since I already paid taxes in The Netherlands


    Sounds dodgy, doesn't it? They say it would beat possible IR 35 changes, etc.

    Has anyone heard of such a model? Will it be part of a Panorama investigation next year?

    #2
    That arrangement is correct. You are liable for tax where you work. So you need two separate contracts, one for the UK working at home and one for the work done in the Netherlands. The company in the Netherlands is obviously not subject to the new IR35 regulations.
    I'm alright Jack

    Comment


      #3
      thanks

      Interesting, thanks a lot.

      Comment


        #4
        You still need to declare your income from the Netherlands in the UK. It probably won't be taxed and if it is only by a minimal amount.
        I'm alright Jack

        Comment


          #5
          Originally posted by BlasterBates View Post
          You still need to declare your income from the Netherlands in the UK. It probably won't be taxed and if it is only by a minimal amount.
          and vice versa. but be sure you declare it in the correct box. the forms are only available in dutch, too.
          the dutch taxman can be a bigger PITA than HMRC.
          Last edited by BR14; 27 July 2019, 11:14.

          Comment


            #6
            Originally posted by BR14 View Post
            and vice versa. but be sure you declare it in the correct box. the forms are only available in dutch, too.
            the dutch taxman can be a bigger PTIA than HMRC.
            This is a good point, you will only be taxable on worldwide income in one country but both tax authorities will assume you are resident in their country until you prove otherwise. You need to keep a record of travel. Provided you can prove your home is in the UK, which should be straightforward, it should be no problem. If you don't have a family in the UK and you spend more than 183 days per year in the Netherlands it will require more effort to demonstrate that you're resident in the UK. The 183 day rule is only one factor in determining this, it is more complicated.

            I would advise using an accountant in the Netherlands.
            I'm alright Jack

            Comment


              #7
              Hello all.

              I've just signed up to ask a question related to this topic

              I've been contracting in the UK for a while through my own limited company.

              I've been put forward a fully remote contract for a Dutch company - I would be working exclusively in the UK. I've never worked outside of the UK and don't know the tax implications. Would I get taxed at all in the Netherlands? Could I treat this as an outside IR35 UK contract? I might have to make occasional trips to the client site but I would not expect that to be more than a few days every 2 or 3 months.

              There is an UK agency involved but they tell me that I would be paid in euros and couldn't really help with my questions.

              Thanks for reading.

              Comment


                #8
                Living and working in the UK, client in the Netherlands

                Hi,

                You will be taxed in the country you work. This means that although there is a Dutch client, you work in the UK and are tax liable in the UK. In regards to IR35 unfortunately I will not be able to advise you.

                I hope this helps.

                Kr,

                Hilfort

                Comment


                  #9
                  And I am close to something of a similar ilk.

                  Working for a Dutch company.
                  Role is 'supposed' to be based in NL, but is remote because of Life.
                  I will be paid in Euros through a payroll structure based in NL.
                  Taxes all paid in NL.
                  I don't pay taxes in the UK.

                  ...I am told. But the fact that I am to be based in the UK for an undefined period of time raises a question mark or two.

                  Not that I am fussed. For the tax year 20/21, if the above goes through, I am happy to pay zero Corp and Income tax to the HMRC this year by way of thanks for screwing up a perfectly good working model. If the HMRC want to chase it back from NL, good luck to 'em.

                  And what little Corp profit comes from the rentals in the LtdCo will be negated when I pay into the pension said profit.

                  Comment


                    #10
                    Originally posted by simes View Post
                    And I am close to something of a similar ilk.

                    Working for a Dutch company.
                    Role is 'supposed' to be based in NL, but is remote because of Life.
                    I will be paid in Euros through a payroll structure based in NL.
                    Taxes all paid in NL.
                    I don't pay taxes in the UK.

                    ...I am told. But the fact that I am to be based in the UK for an undefined period of time raises a question mark or two.

                    Not that I am fussed. For the tax year 20/21, if the above goes through, I am happy to pay zero Corp and Income tax to the HMRC this year by way of thanks for screwing up a perfectly good working model. If the HMRC want to chase it back from NL, good luck to 'em.

                    And what little Corp profit comes from the rentals in the LtdCo will be negated when I pay into the pension said profit.
                    That's not how it works, they won't chase the Dutch tax authorities they'll come after you. You'll have to submit your income, taxed in the Netherlands as part of your tax return. That is the point you may receive a question as to whether you carried out the work in the UK or the Netherlands. Since this is an increasingly common occurence I wouldn't ignore this possibility. If they think you should have taxed it in the UK they'll send you a tax bill. It will be your responsibility to claim it back from the Dutch tax authorities.
                    I'm alright Jack

                    Comment

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