Contracting in Holland...

[tim123]

Hi........ what's the situation with you right now ?

I'm looking at a position there for between 525-600 euro.

Need to know take-home. Maybe not worth it.

I don't have a UK address (perhaps I could find one) so may miss the 30%

You don't need a UK address for the 30%.

You just need to not be Dutch (or currently resident)

tim

[XperTest]

There is no Ltd route in the Netherlands. One man service companies are Verboten (as they are in Germany).

tim

Not true as far as I know. As a contractor in Holland, you need to fill in a so called VAR (Verklaring Arbeids Relatie, or work relationship statement) form detailing your work practices (i.e. number of (concurrent) customers, marketing effort, through agencies or direct etc) that is used by the Dutch HMRC to determine "IR35 status" (well, the Dutch equivalent) in advance for the year. Based on this an advice is given, which roughly dictates whether you are allowed to go Ltd or should use temporary contracts (your customer pays your taxes direct to HMRC in this case). Afterwards they will then determine how you've actually conducted your business and may review their initial assessment.

I may be horribly wrong though as I'm still relatively new to this myself, but I am 100% certain that some of the contractors on my site are Ltd.

[Paddy]

Whats the preferred alternative to a Ltd...? Any advice welcome...

You can use your UK Ltd up to three months in Holland

PS I used mine for three years.

[Angela_D]

On a PAYE payroll kind of a deal what's your net take home on EUR600 ?

Agent has told me that 65% is to be expected.

PLUS daily rates aren't allowed. Has to be hourly. that suits me in fact as sometimes there will be overtime.

[XperTest]

On a PAYE payroll kind of a deal what's your net take home on EUR600 ?

Agent has told me that 65% is to be expected.

PLUS daily rates aren't allowed. Has to be hourly. that suits me in fact as sometimes there will be overtime.

I think that's about right. I was once accidentally sent my financial overview based on the 30% allowance, and the net effect was an increase in takehome from 50% to about 65% IIRC. Foor 600 Euros/day that would mean a takehome of approx 5650 pounds based on a 21 day month.

I recommend AAME from Delft as accountants. They seem to know what they're talking about and have dealt with UK contractors frequently in the past so should be able to advise. They charge 136 Euros/month. From what I've seen it's fairly "normal" in Holland for contracts to include sick pay and 20 days paid leave/year. Not sure where that leaves UK people wanting to work outside UK tax legislation IR35 in Holland.

[Angela_D]

I was once accidentally sent my financial overview based on the 30% allowance, and the net effect was an increase in takehome from 50% to about 65% IIRC.

So you currently pay 50% ?


65% take-home is just a touch too low for me. Borderline if it is acceptable. I may interview just to get a feel for it. If lot of other factors are all positive then I would do it.

[XperTest]

So you currently pay 50% ?

Yup..

One of the reasons why I need to sort my own VAR and Ltd out fast.