Netherlands 6 month contract paid in UK

**norrahe** · 24 May 2011, 13:49

IT Contracting in The Netherlands: Money & Tax :: Contractor UK

Any of the documentation I've read states clearly that you need to register with a Dutch payroll provider before working over there (I'm looking at moving there and contracting there so have read up on quite a bit). You cannot utilize a UK entity. If you are over there longer than 3 months then you will need to register with the local authorities.

**SueEllen** · 24 May 2011, 13:57

Originally posted by Lovyan View Post

I am considering a 6 month contract in The Netherlands and have been advised that I would be paid in the UK through umbrella or my LTD company if I set one up, so I wouldn't need to worry about being taxed over there, is this possible? If you're living and working there aren't you liable for tax there? The rate they gave me was in Euro's + VAT.

Don't even bother trying it. If someone accidentally tells the Dutch Taxman then it will be you who pays not the agency.

UK agencies have limited knowledge on other European countries tax laws.

So when an agency tells you that you can work in the same way as the UK I suggest you use the search facility here or google that countries tax laws to check it.

**LisaContractorUmbrella** · 24 May 2011, 14:22

Absolutely. Working in NL - pay tax in NL - definitely no shortcuts

**sigma** · 24 May 2011, 15:28

I have worked in the Netherlands for a UK agency. This was ten years ago. The situation then was that it is possible to work for up to six months, paying tax in the UK.

If the work continues however (and it did in my case) you would have to work through an umbrella company in Netherlands which deals with the dutch tax issues. I'm am fairly sure the 30% rule still applies to foreign workers in Netherlands. In short it would be more favourable to pay tax there from day one.

S

**Netraider** · 24 May 2011, 15:51

Originally posted by LisaContractorUmbrella View Post

Absolutely. Working in NL - pay tax in NL - definitely no shortcuts

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.

**norrahe** · 24 May 2011, 16:39

Originally posted by sigma View Post

I have worked in the Netherlands for a UK agency. This was ten years ago. The situation then was that it is possible to work for up to six months, paying tax in the UK.

If the work continues however (and it did in my case) you would have to work through an umbrella company in Netherlands which deals with the dutch tax issues. I'm am fairly sure the 30% rule still applies to foreign workers in Netherlands. In short it would be more favourable to pay tax there from day one.

S

It seems to be 3 months now and the tax laws are quite stringent. 30% ruling only applies if you are earning more than eur45k . You may also negate your 30% benefit if you register as resident or if you are conducting business as a sole proprietor or as a b.v. from discussions with a Dutch agent you may still be eligible via an umbrella Agreement.
There is a useful booklet on the Michael page website (Dutch branch) regarding contractor options. You can also look at the Amsterdam expat centre website which has lots of useful info.

**Lovyan** · 24 May 2011, 17:15

Well it's not a good sign that this agency is giving me bad information prior even to an interview. I guess I'll be giving it a miss then.

**norrahe** · 24 May 2011, 19:04

Originally posted by Lovyan View Post

Well it's not a good sign that this agency is giving me bad information prior even to an interview. I guess I'll be giving it a miss then.

Why should you give it a miss, it may be a good opportunity.

You should contact an umbrella company who can deal with Dutch tax regulations and tell the agency that you will be dealing with them. There is a link to such a company on the working over seas part of CUK.

**Lovyan** · 25 May 2011, 10:45

Well I'm struggling to calculate if it is worth the effort. It is to start in less than two weeks so I would be paying for two properties, no time to rent my home out. The work is for Shell but through an outsourcing company so I don't know if the 30% tax relief would count. Both companies are global so I guess it would be easy to prove I've been employed from overseas. Then there's the need to continue paying NIC in the UK.... I will proceed to see if I am successful and if so I would have to negotiate a higher rate I think. Being new to contracting it is difficult enough to work out what your UK rate should be (in and outside of IR35 etc) so trying to work it out for an oversea's contract and what expenses I will be incurring makes it that much more complex.

I've looked on the oversea's section, but am failing to find links to companies for advice on taxation/ umbrella companies. Does anyone else use one they would recommend? And does anyone know of any online calculators to give a rough guide on converting your rate for different countries?

Thanks for the replies so far, it's been very useful.

Netherlands 6 month contract paid in UK