Contract ending for Client UK but new contract for same Client Holland: Agency rid?

[ChimpMaster]

Hi all. My contract with a UK division of a Client is coming to an end, but a Dutch division of the same client wants to retain my services under a new contract. I'm wondering whether I need to retain the same UK agency for this new contract (preferably not as fees are quite high).

The relevant UK agency terms state:

...not during the Contract Term or thereafter for a period of 12 months either directly or indirectly (whether under a contract of services or contract for services or through any third party) provide any services to the Client or End User in any capacity except by contract through the Agency unless the Supplier shall first have paid to the Agency a fee of x% etc etc.

But the contract specifically defines the client as "Client UK Ltd of nn New street, London, etc"


So my thinking is that the UK agency will no longer be a part of the new contract with the Dutch client. Now the client does have their own low-margin (factoring only) agencies which would be preferable, but I can certainly UK Agency fighting to wedge themselves in, which of course I do not want.

Has anyone here been in this situation, or can you recommend how this might play out?

[eek]

Are you opt in or opt out and could you argue that your opt out was done so late in the game (after introduction) that it doesn't count?

[BlasterBates]

The Dutch client is completely separate.

If you are going to work in Holland, you need to register there and go Dutch. You can't work more than a few days in a foreign country without becoming "business" tax resident (not 183 personal tax residency). Don't fall for the 183 day myth. When you do business anywhere you must register with the local authorities. If you will be working almost exclusively in the UK but with the odd visit should be no problem. If you are there a short period you pay limited tax, maybe none at all, but best to have a letter/tax return with the Dutch tax office official stamp on it. If there is no tax to pay get it confirmed.

[norrahe]

The Dutch client is completely separate.

If you are going to work in Holland, you need to register there and go Dutch. You can't work more than a few days in a foreign country without becoming "business" tax resident (not 183 personal tax residency). Don't fall for the 183 day myth. When you do business anywhere you must register with the local authorities. If you will be working almost exclusively in the UK but with the odd visit should be no problem. If you are there a short period you pay limited tax, maybe none at all, but best to have a letter/tax return with the Dutch tax office official stamp on it. If there is no tax to pay get it confirmed.

Working in the Netherlands you cannot operate via your UK limited, you must register with a Dutch payroll company and you will be liable as BB says from day 1 for Dutch tax, speak to an accountant to see if you will be considered for the 30% rule which will lessen the hit from Dutch taxes.

[ChimpMaster]

I'm opted out but I imagine that is now a cow's opinion (Joey: a moo point...)

I might have the option to work in France as opposed to Holland - is that any better from a tax perspective? I haven't worked in either before.

As for the agency, it would certainly be good to remove a middle man. They've been good to me but one of the reasons I am losing the UK contract is due to cost, and certainly the agency cost is prohibitive as far as the client is concerned.

[SueEllen]

I'm opted out but I imagine that is now a cow's opinion (Joey: a moo point...)

If your contract is through one of the foreign subsidiaries of ClientCo then as already said the restrain of trade clause doesn't come into it whether you are opted-in or out.

The agency has worded the clause so it only involves the UK subsidiary of ClientCo.

I might have the option to work in France as opposed to Holland - is that any better from a tax perspective? I haven't worked in either before.

Tax there is even worse than in Holland. You are liable for taxes - income and social tax - in France from day one.

Then you also have the problem depending on where you are working of getting temporary/short-term accommodation particularly as it's summer season.