Travel Expenses to Netherlands - can I claim tax relief?

[Pictish2005]

I am working in the Netherlands through a Dutch management company. I'm
paying Dutch tax (with the 30% tax-free allowance) and UK social
security. I travel back to the UK every weekend. At the end of the year
I will also have to fill in a UK self-assessment where the Dutch tax
already paid will be counted as a tax credit.

Can I claim tax relief on the travel and accomodation
expenses (which would take my UK tax bill to less what I've already
paid in Holland)? As I am working on short term
contracts does my place of work qualify as a "temporary
workplace"?
Anyone got any experience with a similar situation?

M

[Patrick Bateman]

Unfortunately that is not possible - this is why you get the 30% ruling - you greedy bastard :lol

[Bradley]

Re:Costs

The answer is yes

Look at www.inlandrevenue.gov.uk/...M34001.htm for more details

[Patrick Bateman]

Re: Re:Costs

DOH! If you are paying income tax in Holland while working there, then you won't get any extra cash from the Inland Revenue - if you're paying dutch tax then the IR is surely not collecting that.

[Bradley]

Re:Homer

Double DOH! Patrick.

The question was to ask if UK taxes could be taken to a level less than Dutch tax so that the DTR credit would cover all UK taxes

Can I claim tax relief on the travel and accomodation
expenses (which would take my UK tax bill to less what I've already
paid in Holland)?

Pictish would pay UK tax because he remains UK tax resident as he travels back to UK every weekend and the Revenue would argue that he has no intention, therefore, of becoming non-resident.

[BlasterBates]

Re: Re:Homer

Up to a period of 6 months usually, you have a choice. Due to the double taxation treaty if income is taxed in the Netherlands then it cannot be taxed in the UK. Due to a quirk in UK tax law you can however claim tax relief on your expenses to Holland to income, taxed in the UK in the same tax year. You cannot however claim this in Holland if you pay tax there.

Err is that clear :\ .

[Bradley]

Re:Re:Homer

Due to the double taxation treaty if income is taxed in the Netherlands then it cannot be taxed in the UK.

What about dual tax residence? It can and is taxed in both countries. From a UK perspective if you are resident, ordinarily resident and domiciled then your worldwide income is taxed here. You can however claim a tax credit for Dutch tax paid.

[BlasterBates]

Re: Re:Re:Homer

...double taxation treaties obviate this worldwide rule, so it doesn't apply.

[Bradley]

ReTA

What I mean is, why go through the hassle of claiming the protection of the tax treaty when you can get relief for the Dutch taxes paid?