Utrecht / Netherlands

[Crossroads]

I've done a search, and I've read the 'Contracting Overseas' guide, but I was hoping somebody might have some up to date information to help me out... I've got the opportunity of an OK-sounding gig in Utrecht.

I'd be looking to commute weekly (out Monday, back Thursday, flight about £150 to Schiphol), more than likely stay in a cheap but comfortable hotel 3 nights. So say £400? a week in expenses once airport parking, hotels, food, trains etc all taken into account.

I've had a look at the tax regime and the umbrella options but I've not got a clear handle on the costs these guys charge - is anyone doing anything similar to what I'm looking at... and if your normal rate was £600/day in the UK (Ltd) then what might I need to not lose out too much in tax/fees?

[Boo]

...So say £400? a week in expenses once airport parking, hotels, food, trains etc all taken into account .... and if your normal rate was £600/day in the UK (Ltd) then what might I need to not lose out too much in tax/fees?

Dunno. You earn £600pd in the UK, right ? On a 5 day week, presumeably ? That's £3000 pw.

Will you be there for fewer than 183 days ? If so then add the £400 expenses to your Dutch income and divide by 4, that's what you will need to earn to be exactly as well off as in the UK (because you can stay within the UK tax system provided you only work abroad for 183 days in any one year). I make that £850 pd but I personally would be inclined to bump it up a bit to cover the inconvenience of travelling abroad.

On the other hand you may end up being taxed under the Dutch system and I believe they will apply a rate of 52% for all except the first 30% of your company's income. That would make a net tax rate of 36.4% or, equally, a retention rate of 63.6%. That is subject to YourCo applying for, and being granted the 30% ruling, see here for more details. You should be able to remain within the UK social security system for up to 5 years so that is not an issue. Under this scenario you need to earn £3400 pw multiplied by your normal UK retentions rate divided by 0.636. eg if you expect 75% retentions in the UK you need to earn £3400 * .75 / .636 == £4009 pw in Holland.

If you become tax resident then none of the above applies and you will pay 52% of your income in tax & social security.

Hth,

Boo