Money Questions - Holland (new!)

[themistry]

Hi all,

just been of the phone with a dutch agent. In regards to payment, they offered 2 options, just wondered what your thoughts on this are.

1) Scenario 1: Payment via services company (who are the agency - not a 3rd party)

They stated after taxes and fees, my actual take home pay would be 65% (ish) of my hourly rate. Is that right? Tax hit seems far too high? Would anyone working via this means be able to provide insight in what percentage they take home?

2) Scenario 2: I bill via my Ltd

They are happy to go ahead with this (which is a surprise). However, I intend to stay in Amsterdam pretty much fulltime (i.e. will not commute back to the UK every weekend)... I don't think the gig will be 6 months + (but it might) and so am not sure weather to bill via LTD and chance what happens after 6 months (what would happen?? - do I pay back taxes on all previous earnings??) or just go via the services option from the start, but face a hugely reduced take home.

Finally, the first 2 months of the project will involve me working 60% from the UK. Again, not sure if this changes anything (althought my 183 days will probably last longer than 6 months if I do those from the UK).

Any thoughts appreciated

Thanks all,
TM

[SueEllen]

I'm looking at contracts aboard and I suggest you:
1. Do a search on these forums for the words "Netherlands" or "europe" and read the threads.

2. Either email the companies found in the threads, or google for accountants who deal with contractors working in Europe. Email some of the accountants with your situation and how long you think the contract will last. They will then come back to you with advice of the most tax efficient way of working. (Some of them will only talk to you one the phone so put your mobile number on the email.)

The real issue here is to guessimate how long the contract will last so you don't get in trouble with foriegn tax authorities.

[malvolio]

I should professional advice from someone who understands the taxation treatement (there's a few on the PCG fora who do, actually, if you're a member)

However, do not confuse your tax position with YourCo's tax position. There's nothing to stop YourCo continuing to operate in the UK and pay you in Holland - subject to any odd rules that may exist as per the first paragraph.

[SueEllen]

I should have added never trust an agent.

[themistry]

Hi guys,

thanks for the replies. I've done a lot of research in regards to this, so im fairly happy with what has been said.

However, the problem is under the services company route they say my take home pay will be 64% (i'll be on 100k+ EUR pro rata). I just wanted to know if this is correct under the dutch tax system or if they are skimming some of the top?

Thanks all,
Taz

[Dow Jones]

Scenario 2

What's wrong with scenario 2?
I'd love to go along with this. Reason I haven't worked so far in Holland is the (stupid and incorrect) insistence on Scenario 1. If you've worked out the days and it's less than 6 months in total, there should be no probs.
I've done this before in Germany and Switzerland and nobody objected. Holland seems to an awkward EU member.

[Dow Jones]

Which one?

Scenario 1 or 2 ?

[themistry]

Agency now say Scenario 1 is only possible...

grrr

However, looking at dutch tax, which taxes 52% on anything over approx 50K!! I think 65% take home looks pretty good.

TM

[Dow Jones]

Worth it?

Why the agency's 'change of heart'? Was it the carrot of a large commission dangled in front of them?
As I said, this is a big deterrant in working there. Taking into account travel to/fm home, accommodation etc, you are left with less than 50% of your gross takings. Is it worth it?

[themistry]

Why the agency's 'change of heart'? Was it the carrot of a large commission dangled in front of them?
As I said, this is a big deterrant in working there. Taking into account travel to/fm home, accommodation etc, you are left with less than 50% of your gross takings. Is it worth it?

Well for me I'd be on £150 more per day than I get in the UK. Plus i really want to work abroad, so i think its a good deal either way.

We are not exactly badly off, so make hay while the sun shines as they say

TM