contract in NL

[jamesbrown]

Assuming the Dutch 30% payroll scheme for people like us the same or similar to the Danish one I'm on, it might not be so bad.

1. I pay around 30% tax, flat rate, and claim an allowance against for dual homes brings me down to around 26% effective.

2. All that net goes into your personal account, no more accounting, drawings, CT, nothing.

3. My travel/accom costs here in Copenhagen are similar to those I had in Farnborough so no issue there.

The only issues I've faced are having to avoid being in UK for more than 91 days a year, to avoid dual taxation woes (there are more tests, it's not so simple in reality) so that's about 7 days a month, I do one week WFH in UK (tho to be non tax resident in UK you can only work for three, I'm cheating the system a bit there) - three weeks on site.

Another is registering and 'getting into the system' over there, dealing with Gov offices anywhere is a nightmare, and the offices are only ever open 10:00-14:00 and full of Chinese students, took me about two months to 'get legal' fully.

Rate needs to be good, luckily the generally tanking pound is good news!

Yes, the Danish scheme is great! Time limited, if I recall though (?). I didn't realise that the Dutch had that too (it's been a long time since I worked there though).

In terms of avoiding becoming tax resident in the UK, it's way more difficult than it used to be (since the statutory residence test was introduced). Here's the updated guidance. I guess you're referring to the "Third automatic overseas test" for someone working "full-time" overseas. Yes, 91 days, but you also cannot work in the UK for more than 31 days (counted as 3+ hours per day).

[stek]

Yes, the Danish scheme is great! Time limited, if I recall though (?). I didn't realise that the Dutch had that too (it's been a long time since I worked there though).

In terms of avoiding becoming tax resident in the UK, it's way more difficult than it used to be (since the statutory residence test was introduced). Here's the updated guidance. I guess you're referring to the "Third automatic overseas test" for someone working "full-time" overseas. Yes, 91 days, but you also cannot work in the UK for more than 31 days (counted as 3+ hours per day).

5 years, I'll be 61 then!

I do play fast and loose with the 3hrs a day rule when in UK, but to be honest it's hard to prove one way or another, that's my risk and I fully accept I may well fail the tests come tax year end etc. And I'll be almost 100% in DK or SE until march anyway so it might even out. I record everything, where I am, dates, length of time etc...

But as I pay 30% on my whole earnings in DK, that might be more tax than I would pay in UK since I'd be partly on the 40% rate - but in Denmark I have no personal allowances, under UK tax I would.

Which is why one needs a tax advisor when in this position.

Up till now I'd left things open until I knew what I wanted to do, but now I know I want to stay in the Nordics, so I think after Xmas, I'll do the MVL on my limited or just make it dormant.

One think is for sure, it's not possible to just hop into DE, NL, CH, DK etc, hop back and ignore local law/tax on the basis that's it's EU freedom of movement, so hopefully this thread will help others.

[jamesbrown]

Which is why one needs a tax advisor when in this position.

Absolutely, agreed. This is really where people get into difficulties. Never take advice on international taxation from a local accountant, let alone a potential client or agent! It's a minefield, even in the relatively straightforward EU.

[stek]

Absolutely, agreed. This is really where people get into difficulties. Never take advice on international taxation from a local accountant, let alone a potential client or agent! It's a minefield, even in the relatively straightforward EU.

I had one agent for a contract in Egypt, which I got the offer for, after I researched, saying it's fine to work on a tourist visa and overstay - no issue. Might be true in countries like that off the corruption scale but the same was true in reverse, dodgy on visa, may mean dodgy on actually paying me, so I binned it.

I'm all for bending the rules a bit, did a stint in Russia but I know the limits!

[jamesbrown]

I'm all for bending the rules a bit, did a stint in Russia but I know the limits!

Yup.

[nucastle]

What's the deal with claiming expenses with a brolly for an EU gig?

Can it be done legitimately as I'm out of the country, or am I in the same boat as UK bods are with not being able to claim T&S any more.

Fag packet maths is putting me at 2600 quid a month after a weekly flight, a half decent hotel and daily subsistence costs. Not great if that has to come out of already taxed income.

[Eirikur]

Assuming the Dutch 30% payroll scheme for people like us the same or similar to the Danish one I'm on, it might not be so bad.

1. I pay around 30% tax, flat rate, and claim an allowance against for dual homes brings me down to around 26% effective.

2. All that net goes into your personal account, no more accounting, drawings, CT, nothing.

3. My travel/accom costs here in Copenhagen are similar to those I had in Farnborough so no issue there.

The only issues I've faced are having to avoid being in UK for more than 91 days a year, to avoid dual taxation woes (there are more tests, it's not so simple in reality) so that's about 7 days a month, I do one week WFH in UK (tho to be non tax resident in UK you can only work for three, I'm cheating the system a bit there) - three weeks on site.

Another is registering and 'getting into the system' over there, dealing with Gov offices anywhere is a nightmare, and the offices are only ever open 10:00-14:00 and full of Chinese students, took me about two months to 'get legal' fully.

Rate needs to be good, luckily the generally tanking pound is good news!

The Dutch 30% scheme is very different. You're not allowed to claim anything when you're in that scheme. If you do want to claim expenses such as housing and travel you have to pay the full tax 52%

[nucastle]

Yeah that's just dawned on me now (well, settled in finally). The 30% rule is intended to cover the expenses you incur, so you can't then claim expenses on top of that.

As if they were going to give you a 30% deduction just for the heck of it!

[stek]

The Dutch 30% scheme is very different. You're not allowed to claim anything when you're in that scheme. If you do want to claim expenses such as housing and travel you have to pay the full tax 52%

The Danish gives me a claim of £50 a working day against tax for dual home and that's it, though my payslip does tantalisingly indicate I can claim for 'legitimate' business expenses, gonna ask about that!