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    Lightbulb New Contract in the Netherlands & NEW questions

    Hello Experts!

    My facts:
    I got very positive feedback after an interview in the Netherlands.
    I need to investigate how to work there.
    I did hours of homework and checked this forum and also many google to find out how to operate in NL.

    Now as the contract would be 6-10 months, I decided to go through a Dutch umbrella to have Dutch payroll, and will not use my UK Limited.
    Initially, I'll commute and will be in Amsterdam from Monday to Thursday, then working from home Fridays.

    After a few weeks I will take my family with me, and will need to find accomodation, buy a car, etc...

    Questions:
    Can you please recommend Dutch umbrella companies you are using NOW or used recently?
    I might consider "international" umbrellas as well, but after speaking to some, I have doubts..

    Once my family will be there, and I am working there as a contractor through an umbrella with A1 and the 30% (so paying NI in the UK, and may have 30% tax rule applied), and my wife is a staying home mum with my 2 yrs old, would they need to pay NI in the Netherlands to be able to visit GP?
    (we have European Health Insurance card, but that only covers emergencies. My wife has no job so not paying NI anywhere. She has been an employee of our Limited in the UK doing my books part time for a year with tax efficient salary with no NI till last month)
    Should she also apply for A1???

    Thanks so much.

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    Before 30/90 days are up you must all register locally, switching you from being a visitor to being resident.

    Then you will get all the Dutch stuff, SS number, Doctor, Tax Ref, etc. EHIC is only really for emergency treatment as a visitor, even within EU.

    If you are still tax resident in UK (hard to not be than you think - look at HRT on HMRC site) you will be subject to UK tax too over and above Dutch tax, i.e. if Dutch tax is 30% and you would be taxed at 40% in UK you pay 30% to NL and 10% to UK. That's a simplistic view, in reality you will suffer from split-year treatment so budget for a proper tax expert to sort it out.

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    Quote Originally Posted by stek View Post
    Before 30/90 days are up you must all register locally, switching you from being a visitor to being resident.

    Then you will get all the Dutch stuff, SS number, Doctor, Tax Ref, etc. EHIC is only really for emergency treatment as a visitor, even within EU.

    If you are still tax resident in UK (hard to not be than you think - look at HRT on HMRC site) you will be subject to UK tax too over and above Dutch tax, i.e. if Dutch tax is 30% and you would be taxed at 40% in UK you pay 30% to NL and 10% to UK. That's a simplistic view, in reality you will suffer from split-year treatment so budget for a proper tax expert to sort it out.

    Thank you Stek,
    I contacted many Dutch and UK accountancies. The issue is that they don't care about the other, and only understand their local business. Can anyone recommend a firm or someone who can help?
    If I'll stay in the NL full time with family, all registered etc... I'll notify HMRC in writing, and they should not class me as a UK resident.
    Would the Dutch provide local NI to people who are unemployed? (e.g. a newcomer stay at home mum?)

    I am still open for recommendation of any recent Dutch umbrellas you are using or used.

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    Quote Originally Posted by hunterbrit View Post
    Thank you Stek,
    I contacted many Dutch and UK accountancies. The issue is that they don't care about the other, and only understand their local business. Can anyone recommend a firm or someone who can help?
    If I'll stay in the NL full time with family, all registered etc... I'll notify HMRC in writing, and they should not class me as a UK resident.
    Would the Dutch provide local NI to people who are unemployed? (e.g. a newcomer stay at home mum?)

    I am still open for recommendation of any recent Dutch umbrellas you are using or used.
    You need to complete HMRC form P85, but you will be caught by overlapping tax years and split-year tax treatment until it sorts itself out so will be tax resident in both countries for a year or two. You will need a tax accountant for this, it's a nightmare. Also there are various HMRC Habitual Residency Tests, kids in UK, days in UK, ties to UK before you can be sure you are not tax resident - you need to read up or pay someone to read up and act accordingly.

    If you are under an expat tax scheme you might find you are not covered for certain benefits should you need them, for example the similar Danish ETS scheme - no unemployment benefit for 12 months. Yo'll need to check this yourself as I've never worked in NL so I don't know for sure and neither do I know any NL brollies. In Denmark I used the agents recommended tax/payroll people, they were fine did all the DK tax and compliance work but be prepared for a hefty fee, it's not like UK, 80/100 a month, more like 350/400 a month.....

    And the payroll people don't generally factor, they pay you when the end client pays the agent and agent moves to funds to them.

    Remember too you don't get the 30% scheme forever (12 months rings a bell) then you're on NL tax (eye-watering, like in Denmark).

    I get the impression most people even on here wing it and place their trust in the non-existent 183 day rule but my advice is to be legal, only a matter of time before they cache with you witness the German Finanzamt and latterly the Danish SKAT.

  5. #5

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    Quote Originally Posted by hunterbrit View Post
    I contacted many Dutch and UK accountancies. The issue is that they don't care about the other, and only understand their local business.
    Welcome to the world of international contracting and cross-border taxation. It's a topic that will give you hours of fun.
    Read up a little on UK tax residency rule (it's not straightforward) and keep in mind that NL tax year is the calendar year.
    Also, private med insurance is mandatory in the NL.
    And all umbrellas there are crap. There is little competition, little incentive for them to do a helf-decent job, and generally you'll have to use whoever your end client "strongly" recommends.

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    Quote Originally Posted by stek View Post
    Remember too you don't get the 30% scheme forever (12 months rings a bell)
    If you qualify, you can benefit from it for up to 8 years.

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    Quote Originally Posted by DotasScandal View Post
    If you qualify, you can benefit from it for up to 8 years.
    Not bad! In DK it was shorter than that, but I totally can't remember how short.

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    Quote Originally Posted by stek View Post
    I get the impression most people even on here wing it and place their trust in the non-existent 183 day rule but my advice is to be legal, only a matter of time before they cache with you witness the German Finanzamt and latterly the Danish SKAT.

    Non existent???? is it only in NL that it is non existent?
    This default font is sooooooooooooo boring and so are short usernames

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    Quote Originally Posted by stek View Post
    You need to complete HMRC form P85, but you will be caught by overlapping tax years and split-year tax treatment until it sorts itself out so will be tax resident in both countries for a year or two. You will need a tax accountant for this, it's a nightmare. Also there are various HMRC Habitual Residency Tests, kids in UK, days in UK, ties to UK before you can be sure you are not tax resident - you need to read up or pay someone to read up and act accordingly.

    If you are under an expat tax scheme you might find you are not covered for certain benefits should you need them, for example the similar Danish ETS scheme - no unemployment benefit for 12 months. Yo'll need to check this yourself as I've never worked in NL so I don't know for sure and neither do I know any NL brollies. In Denmark I used the agents recommended tax/payroll people, they were fine did all the DK tax and compliance work but be prepared for a hefty fee, it's not like UK, 80/100 a month, more like 350/400 a month.....

    And the payroll people don't generally factor, they pay you when the end client pays the agent and agent moves to funds to them.

    Remember too you don't get the 30% scheme forever (12 months rings a bell) then you're on NL tax (eye-watering, like in Denmark).

    I get the impression most people even on here wing it and place their trust in the non-existent 183 day rule but my advice is to be legal, only a matter of time before they cache with you witness the German Finanzamt and latterly the Danish SKAT.
    Yes, I am aware of the above.
    Most accountancies quoted 3-5% of day rate, or 500 ish GBP / month. Some would even charge for giving me a quote on their services :-)
    I don't want to name them but some seems to be strange trying to trick things with classing most of the salary as a bonus etc.. to save on NI contributions. Some give false / misleading calculations on potential net salaries (same as UK magic umbrellas), so I would need a recommendation from someone who actually there now.
    I know without the 30%, after a year the net salary would be 52% ish, which is a PITA. Lets see. I am still waiting for my offer.

  10. #10

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    Quote Originally Posted by MPwannadecentincome View Post
    Non existent???? is it only in NL that it is non existent?
    There is no tax harmonisation in EU, no State is going to let you in, work and not pay any tax there for six months...

    As soon as you are registered, you're in the tax system, you pay tax.

    EU has the four freedoms, movement, labour, capital and goods. Not tax.

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