Contracting Amsterdam - UK LTD Company

[por997]

Hello, I am about to take up a new contract in Amsterdam. I will be spending less than 183 days a year in Amsterdam and will need to off set my weekly expenses ie hotels and flights etc etc.

Am I able to invoice via my UK LTD Company? I do not want to come under the Dutch tax system if possible and want to pay my taxes in the UK. Thanks for your help.

[sage@reillymcmordie]

Contracting Amsterdam

Strictly if you do any work on foreign soil, you should present yourself to the host country's tax authorities. It can become a very complex area that needs professional advice.

Generally the host country tax authorities will turn a blind eye to anyone working there for less than 6 months. This is however discretionary.

[Little'Old Me]

Hello, I am about to take up a new contract in Amsterdam. I will be spending less than 183 days a year in Amsterdam and will need to off set my weekly expenses ie hotels and flights etc etc.

Am I able to invoice via my UK LTD Company? I do not want to come under the Dutch tax system if possible and want to pay my taxes in the UK. Thanks for your help.

Go to the HMRC site: http://www.hmrc.gov.uk type E101 in the Search. Download the pdf and get your Ltd Company to complete the "Application for form E101 when an employee" asp on you behalf - that should solve your problems..............

[MarkOD]

I think the dutch tax system is a little different from other countries. The general message is that you have to pay tax the second you step foot on their soil. Pretty much like the UK (unless your using a dodgy offshore scheme of course) In that repect the 183 day rule wouldn't actually apply

[por997]

Thanks everyone for your response. Is it true I can also register my UK company in Holland?

[ASB]

Strictly if you do any work on foreign soil, you should present yourself to the host country's tax authorities. It can become a very complex area that needs professional advice.

Generally the host country tax authorities will turn a blind eye to anyone working there for less than 6 months. This is however discretionary.

That is a very sweeping and in some cases erroneous statement - though I heartily agree with getting advice. It all depends on the foreign countries rules, also it is of course possible to be tax resident in multiple places simultaneously.

Portugal for example have a withholding tax where services are provided by a non portuguese entith and the services are provided on Portuguese soil (actually even off Portuguese soil since a lot of services will be supplied in Portgual due to the place of supply vat rules even if they are phyiscally performed elsewhere). In this specific case the invoices can be paid gross if the UK authroities will certify the company is taxed on its wordwide income. If not the provider is legally obliged to deduct the withholding tax - which can eventually be recalimed against UK CT through the DTA.

But yes, staying genuinely clean can get very complex very quickly.

[Little'Old Me]

Form E101 is issued by the HMRC confirming your status for NIC purposes if working in more than 1 EU state. This exempts you from liability for Deductions in other EU states.

If you don't pay UK NIC you can't get a E101. You also have to maintain a home in the UK.

It does work, Engineering contractors have been using them for years so they don't have any problems working in the EU. This is both self-employed and ones with their own Ltd Companies. 2 years ago I had a client (Polish passport, with a UK Ltd company) sitting in a Car park outside a Spanish factory as they would not allow him to start work until I faxed a copy of his E101 as they did not want to be liable for tax/NIC on the the money he was being paid. Getting it was easy because he had a home in the UK and a wife living here.

[por997]

Thanks for all the information. Can we also register are UK LTD compnay in Netherlands?

[sage@reillymcmordie]

That is a very sweeping and in some cases erroneous statement - though I heartily agree with getting advice. It all depends on the foreign countries rules, also it is of course possible to be tax resident in multiple places simultaneously.

Portugal for example have a withholding tax where services are provided by a non portuguese entith and the services are provided on Portuguese soil (actually even off Portuguese soil since a lot of services will be supplied in Portgual due to the place of supply vat rules even if they are phyiscally performed elsewhere). In this specific case the invoices can be paid gross if the UK authroities will certify the company is taxed on its wordwide income. If not the provider is legally obliged to deduct the withholding tax - which can eventually be recalimed against UK CT through the DTA.

But yes, staying genuinely clean can get very complex very quickly.

- I defer to your extensive knowlege of the portugese system of which I have no experience. I was speaking from personal experience of some countries where the period of work was short and the potential tax liability small.The key i think we agree is that it is a complex area and professional advice needs to be sought.

[Jubber]

My experience of contracting in NL is this:

1) Client would not entertain anyone who was not going through a Dutch payroll company because of 'chain law' liabilities - which basically means if a worker disappears without paying tax - the client is liable.

2) Agent would not take on anybody who wouldn't agree to the above (you could choose your own NL payroll - didn't have to be agent's choice)

3) If you can get a client who will let you use your UK Ltd - fill your boots. I believe the 183 day law thingy applies

I applied for the 35% rule (it is now 30% I believe) which gives foreign workers tax breaks so my take home in the end was about 70%.

I believe the NL does not recognise "1 man Limited companies"

I suggest you talk to an accountant