Anyone here claimed the 30% expat tax allowance in Holland?

[ARRANPILOT]

Interesting

I am working in Holland on a short contract - less than 6 months.

I am being told very clearly that my UK limited Company is not recognised in Holland, and that I have no option but to organise my compensation through a Dutch payroll Company. This I am doing.

The Dutch payroll company I am on the point of using is telling me that the 30% rule will be applied, and when I do my sums and deduct their expenses, this is there or there abouts when I compare the income expected through my UK ltd, or via the payroll like this.

Further I am informed that when it comes to submitting my UK personal tax return for 2007/8, this income will NOT be included in the calculation of my overall UK tax liability - I will have paid my taxes in Holland.

Does anyone have a contrasting experience to this?

Many thanks,

Mike.

[ASB]

Further I am informed that when it comes to submitting my UK personal tax return for 2007/8, this income will NOT be included in the calculation of my overall UK tax liability - I will have paid my taxes in Holland.

That is (in most circustnaces) complete balls.

As a UK tax resident (and you give no indication that you are not, also your circumstances described give no indication that might change) then you are due to pay UK taxes on entire worldwide income (inless you are not UK domiciled).

So yes you will need to account for the gross dutch income on your tax return. And this will therefore be subject ot UK taxes.

But....

There is a double tax agreement in place between UK and the Netherlands. You will get reilief from UK tax against the Dutch tax paid. This is limited to either the maximum of the UK tax paid on the income provided it is not restricted by the agreement.

In principle you will get taxed on personal income at the higher of the rate which applies to UK or Netherlands.