Contract in Netherlands - General Advice and payroll

[tigerinopen]

Hi All,

I have got a 9 month contract in Netherlands and have never worked in Netherlands before. My questions are:
a) Does most people go for payroll option compared to having there own limited company in Netherlands? Can I not use my UK limited company to get paid for my contract in Netherlands?
b) I am ready to go with the payroll but the agency's only option is easystaff.
c) Agency is saying that I will get paid 2.5 Euro per hour less than what we agreed to - just because I am going via payroll company. I am yet to receive the breakdown from the payroll company but I understand they will be charging extras on the top of 2.5 Euro per hour. is that how it works in Netherlands?. I would not have thought so. What is a good descent reasonable %age that a good payroll company charges? Any ideas?

Also, Has anyone have any past experience or knowledge about this payroll company.

Thanks so much in advance.

I will continue to do my research on the forum too as I have to revert back to the agency soon.

[northernladuk]

These help?

https://www.google.co.uk/search?q=ne...sm=93&ie=UTF-8

or

https://www.google.co.uk/search?q=ne...ntractoruk.com

[stek]

You can use ur own ltd under EU law but in reality the agencies have this stitched up unless you want to argue and potentially piss them off and end up canned before you start.

Look at a 65% return on gross...

[Jubber]

When I was out there - over ten years ago, but some of this may still be ok - I used an accountants to do my payroll (had to - was in the contract - chain law etc) and I saw a return of 70%

There was a thing called the 30% rule (or similar) and lots of other things you can claim on - e.g. double housing costs -

Holland is a great place - go - you'll enjoy it.

I came home with a bank full of money and pissed it all up the wall. I suggest you don't do that, but go and have a great time. Lovely people. Love Brits - hate Germans

[tigerinopen]

Thanks NorthernladUk..that is a very clever way of googling..I knew but never try that..I will give it a shot for specific things.

You can use ur own ltd under EU law but in reality the agencies have this stitched up unless you want to argue and potentially piss them off and end up canned before you start.

Look at a 65% return on gross...

So that is assuming 30% ruling?
Also, what sorts of deductions (such as holidays?) by the payroll company should be acceptable. Such as income tax, employer social security costs, payroll company fee, they seem to have 3 different types of holidays deductions( holidays days, holidays allowance, short-term absence), Build-up reservations. I should certainly be able to tell them I dont want to build up any holidays allowance and God knows what is Build up reservations.

This is one of the sample I have seen from them. Infact, I am not even sure about most of these deductions. Will know more about from them but do they make any sense to you guys. After all these deductions, it is coming about 58% net pay.

I need help. This does not sound good. Inputs please.

[tigerinopen]

When I was out there - over ten years ago, but some of this may still be ok - I used an accountants to do my payroll (had to - was in the contract - chain law etc) and I saw a return of 70%

There was a thing called the 30% rule (or similar) and lots of other things you can claim on - e.g. double housing costs -

Holland is a great place - go - you'll enjoy it.

I came home with a bank full of money and pissed it all up the wall. I suggest you don't do that, but go and have a great time. Lovely people. Love Brits - hate Germans

You are a star. Would do it..It is still a bit far..

[GreyWolf]

I was there seven years ago using a dubious scheme involving filling in a questionnaire once a month that counted as 'working in Ireland' in order to pay social security there instead of in the Netherlands.

All strictly legal in the sense of the Dutch taxman not having got around to investigating it so it had not been banned yet. I believe the same scheme is used in Belgium because in both countries it is not so much the tax that is scarily high but the social security deductions.

All fun and games until the tax man takes a closer look.

[tigerinopen]

Can someone please be advice on it..

is it must for them to deduct holidays allowances and other categories..I would rather have my money with me and than with them...

Will be very helpful. Need to negotiate the terms tomorrow..so getting ready..

[norrahe]

Thanks NorthernladUk..that is a very clever way of googling..I knew but never try that..I will give it a shot for specific things.



So that is assuming 30% ruling?
Also, what sorts of deductions (such as holidays?) by the payroll company should be acceptable. Such as income tax, employer social security costs, payroll company fee, they seem to have 3 different types of holidays deductions( holidays days, holidays allowance, short-term absence), Build-up reservations. I should certainly be able to tell them I dont want to build up any holidays allowance and God knows what is Build up reservations.

This is one of the sample I have seen from them. Infact, I am not even sure about most of these deductions. Will know more about from them but do they make any sense to you guys. After all these deductions, it is coming about 58% net pay.

I need help. This does not sound good. Inputs please.

You need to speak with an accountancy firm that deals with expats specifically, who can advise you about the best way possible.

Many agencies will insist in you using their payroll, but you can use your ltd, you need to ensure to have all the correct forms filled in.

I had dealings with these accountants when I first contracted over here ( by hear I mean Netherlands as I now live there).

You also need to make sure that you sort out medical insurance or have the E111 sorted, otherwise you end up with a nice little fine or court appearance.

The 30% ruling will need to be applied for ASAP, and yes there do seem to be a lot of deductions, the Netherlands does have a fairly high rate of tax. Irrespective of whether you intend to take holidays or not these are standard deductions, so you still have to shell out for this.

Rather than asking us, speak to an accountant who can advise, some of these payroll companies also function as accountancy firms as well, but some of them that I've had dealings with had no clue whatsoever how to deal with someone based in the UK ( as I was at the time).

[northernladuk]

You can narrow the search down to avoid stuff from General as well...

Details of how to search are in the Welcome/FAQ's thread.. Linked below.

http://forums.contractoruk.com/welco...uk-forums.html