New Contract in the Netherlands & NEW questions

[jamesbrown]

There's quite a lot of confusing information on here!

Mainly from you . It also suffers from the material disadvantage of being piffle.

[SueEllen]

There's quite a lot of confusing information on here! We had legal tax advise from the company I occasionally contract for in the Netherlands, which uses quite a lot of UK contractors actually. The over riding conclusion from respected Dutch tax advisors is as a Director of your own Ltd company you must bill to a U.K. Agency in £'s , they then do the usual dealings with the NL company and send you over as a full UK resident in a temporary work place. It's as simple as that really to cut a long story short, you don't need to register or get caught up in any NL Health insurance, Tax, Resident status as long as you return to the UK at least once or twice a month. Then you apply the full Overseas Scale Rate for each 24 hours your sent here, as per the HMRC set rates for each main City, and you really will be far better off than working on a comparable contract working within the UK.

This is 100% wrong.

Anyone who takes this advice will end up.in trouble with the Dutch taxman.

[rawly]

I respect there is a lot of long standing, and seemingly knowledgeable , people on here but considering the advise in this case given by a top Dutch Tax legal firm, who gave advise to a Dutch company, can everyone who has posted their one sentence retorts above please cite their Legal Tax advisors who are experts in Dutch law pertaining to your comments?

I don't see any letters after any of your names for one thing! Who do I believe a couple of posters on a Forum or the council of two Dutch based entities who have in depth legal knowledge. Now let me think who to believe!

[stek]

I respect there is a lot of long standing, and seemingly knowledgeable , people on here but considering the advise in this case given by a top Dutch Tax legal firm, who gave advise to a Dutch company, can everyone who has posted their one sentence retorts above please cite their Legal Tax advisors who are experts in Dutch law pertaining to your comments?

I don't see any letters after any of your names for one thing! Who do I believe a couple of posters on a Forum or the council of two Dutch based entities who have in depth legal knowledge. Now let me think who to believe!

You are Captain Redbeard Rum and I claim my five pounds....

Stek, 25 mtr breaststroke

[rawly]

You are Captain Redbeard Rum and I claim my five pounds....

Stek, 25 mtr breaststroke

Hardly Red Beard! I Think giving my quick summary might not have conveyed some of the finer details. To be fair to some of the sarcastic comments, you don't fully understand the specifics of this contract setup.

There's 5 entities at play:

Me>My Uk Ltd> U.K. Employment agent>Netherlands branch of Agent>Dutch Client

An important aspect to understand is the Dutch client employs 100s payroll staff so their tax affairs have to be fully transparent. You can't hide 2 dozen contractors within that as 'ghosts' although none of us have Dutch employment contracts. I understand the payments made from Dutch Client>Dutch agent are all vetted and agreed by the authorities, at source not knowing the exact ratio it's a 70 / 30 type arrangement which is fully agreed to be acceptable to the authorities.

The rest of the stuff I said which was non tax related such as claiming 24 hour scale rates when sent abroad working Monday to Friday is just normal expenses rules when sent from the uk to a specific city Overseas. Not sure why some of you poo poo that part, I guess You've never worked abroad perhaps. It's all HMRC approved documents and procedures.

[stek]

Hardly Red Beard! I Think giving my quick summary might not have conveyed some of the finer details. To be fair to some of the sarcastic comments, you don't fully understand the specifics of this contract setup.

There's 5 entities at play:

Me>My Uk Ltd> U.K. Employment agent>Netherlands branch of Agent>Dutch Client

An important aspect to understand is the Dutch client employs 100s payroll staff so their tax affairs have to be fully transparent. You can't hide 2 dozen contractors within that as 'ghosts' although none of us have Dutch employment contracts. I understand the payments made from Dutch Client>Dutch agent are all vetted and agreed by the authorities, at source not knowing the exact ratio it's a 70 / 30 type arrangement which is fully agreed to be acceptable to the authorities.

The rest of the stuff I said which was non tax related such as claiming 24 hour scale rates when sent abroad working Monday to Friday is just normal expenses rules when sent from the uk to a specific city Overseas. Not sure why some of you poo poo that part, I guess You've never worked abroad perhaps. It's all HMRC approved documents and procedures.

There is a difference between IBM and Oracle et al and One-man-contractor-co Ltd, do some reading. Start off with the German Taxman Cometh thread, and the Belgian one for real world examples and search the forum for some guy in Denmark getting stiffed by the SKAT.

Then come back to us.

[rawly]

There is a difference between IBM and Oracle et al and One-man-contractor-co Ltd, do some reading. Start off with the German Taxman Cometh thread, and the Belgian one for real world examples and search the forum for some guy in Denmark getting stiffed by the SKAT.

Then come back to us.

I appreciate your opinion, but come back to you for what? This is a real world example in practice. It's the only way you can efficiently use your Ltd company to do short contracts abroad. You could never work directly from your Ltd as then it's get very complicated indeed.

What is your actual experience of working in the EU? Rather than citing examples of when it went wrong for others?

[eek]

I appreciate your opinion, but come back to you for what? This is a real world example in practice. It's the only way you can efficiently use your Ltd company to do short contracts abroad. You could never work directly from your Ltd as then it's get very complicated indeed.

What is your actual experience of working in the EU? Rather than citing examples of when it went wrong for others?

Stek is currently working in Denmark....

[rawly]

Stek is currently working in Denmark....

Well I'm sorry it went wrong for Stek, but I can only relay my experience regarding this specific contract arrangement.

[stek]

Well I'm sorry it went wrong for Stek, but I can only relay my experience regarding this specific contract arrangement.

It's not gone wrong, I pay Danish Tax on ETS scheme, 30% ish, limited dormant, stay out of UK as much as possible, under split-year treatment, no come back, clear conscience.

Previously, six months in CH, local payroll, taxes paid locally and UK subject to DTA, no come backs, clear conscience.

One year in Dublin, my first EU role, winged it, used UK Ltd, Revenue Commissioners caught me, paid up (not very much luckily since I used ferry and days in/out were not clear so we settled - but a lesson). Maybe more come back, conscience not clear.....

What law/directive due you think allows one to work in another Sovereign State without paying local tax? Quote the EU Directive that pertains to EU tax harmonisation and I'll read it.