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Netherlands 6 month contract paid in UK

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    #11
    The fact that Shell is global is actually irrelevant, it's where you work that determines where it's taxed.

    Take advice when you get there. If you tax in the UK you run the risk of being hit by the Netherland tax office.

    Many contractors ignore this when working abroad and then receive nasty letters sometimes several years after the contract finished, even if they stayed a few months.

    Don't ignore the local tax rules. Treat the Dutch authorities with the same respect as you would HMRC. I suspect you wouldn't even think about not declaring a 3 month contract in the UK.

    It's much safer to tax (or try to) in the Netherlands, get a letter from them saying your exempt (which won't happen, and proves you should have taxed it) and only then if they refuse to take the tax, tax it in the UK. You wouldn't dream of going to the US doing a small contract and leaving with the money in your back pocket without having first declared that's what you are going to do.

    It isn't complicated really any work you do anywhere should be taxed where you do it until some bonafide official tells you don't. The general rule is you can't work anywhere in the world without registering, and getting permission, in the EU you don't need permission but you still need to register. Anything else will lead to trouble if they find out.
    Last edited by BlasterBates; 25 May 2011, 13:14.
    I'm alright Jack

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      #12
      Originally posted by Netraider View Post
      How would this work for short term contracts? I quite often do 5 - 10 days consultancy through my LTD in various EEC countries, and just bill the agency (If Involved) a UK rate & VAT, and let them sort out the other stuff. A couple of times I have had a direct contract and just billed the client - less VAT if I have their VAT details, and with UK VAT if I don't.
      There is a special exemption in the majority* of EEA countries for short contracts of a few days.

      However you need to keep an eye on how many days in a country's tax year over normally 4 tax years of the time you are spending in each country.

      *majority != all so you need to check each country out individually.
      "You’re just a bad memory who doesn’t know when to go away" JR

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        #13
        Netherlands tax authority website
        "Ask not what you can do for your country. Ask what's for lunch." - Orson Welles

        Norrahe's blog

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          #14
          When I worked for Shell they paid my expenses and I travelled out every week Mon - Thur and was paid through their UK operation. I think this is allowed isn't it?

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            #15
            Originally posted by ribble View Post
            When I worked for Shell they paid my expenses and I travelled out every week Mon - Thur and was paid through their UK operation. I think this is allowed isn't it?
            Depends how long you were doing it for.

            Have a look at the website link norrahe nicely posted.
            "You’re just a bad memory who doesn’t know when to go away" JR

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              #16
              So in the end, did you take the job? I'm in a similar situation a v v curious.

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