Anyone here claimed the 30% expat tax allowance in Holland?

[ASB]

Further I am informed that when it comes to submitting my UK personal tax return for 2007/8, this income will NOT be included in the calculation of my overall UK tax liability - I will have paid my taxes in Holland.

That is (in most circustnaces) complete balls.

As a UK tax resident (and you give no indication that you are not, also your circumstances described give no indication that might change) then you are due to pay UK taxes on entire worldwide income (inless you are not UK domiciled).

So yes you will need to account for the gross dutch income on your tax return. And this will therefore be subject ot UK taxes.

But....

There is a double tax agreement in place between UK and the Netherlands. You will get reilief from UK tax against the Dutch tax paid. This is limited to either the maximum of the UK tax paid on the income provided it is not restricted by the agreement.

In principle you will get taxed on personal income at the higher of the rate which applies to UK or Netherlands.

[ARRANPILOT]

Interesting

I am working in Holland on a short contract - less than 6 months.

I am being told very clearly that my UK limited Company is not recognised in Holland, and that I have no option but to organise my compensation through a Dutch payroll Company. This I am doing.

The Dutch payroll company I am on the point of using is telling me that the 30% rule will be applied, and when I do my sums and deduct their expenses, this is there or there abouts when I compare the income expected through my UK ltd, or via the payroll like this.

Further I am informed that when it comes to submitting my UK personal tax return for 2007/8, this income will NOT be included in the calculation of my overall UK tax liability - I will have paid my taxes in Holland.

Does anyone have a contrasting experience to this?

Many thanks,

Mike.

[newguy11]

Thanks all. I've got two approaches then, the offshore route and the global company route. It'll give both a try.

[DS23]

another route that can work (assuming the client is "global" enough) is to have your contract with the uk company of the client who then invoice the dutch one for your services.

[newguy11]

Thanks for the input. It's a 1yr contract, so I can't do the Ltd Co. because that's longer than 183 days. (Unless I do it in two 6 month stints? Is this legal.)

Is it still possible/legal to approach things from an offshore solution in Holland for longer term contracts?

[DS23]

My advice is only deal with agencies that allow Ltd co, or off-shore solutions. Many will, otherwise walk away.

Hope that helps

or charge a monster of an (all in) daily rate...

[Turion]

Ltd Co working is the best option by miles regarding administration, tax, expense claims etc and you avoid the nightmare Dutch tax system. I know it I've done it both ways. This is legal if you are not resident there for over 183 days in a year.

The Dutch 30% tax rule is meant for permies on long term secondment, living there permanently for more than 6 months to mitigate the costs involved in relocation, but has been hijacked by agencies and some clients and even promoted as a 'tax benefit' This 'benefit' will be very expensive for you and is not guarenteed as it can be applied for ONLY by your 'employer'. A management co will charge 300-500 euros/month. You will still pay a lot of tax, and social charges for sickness, unemployment and pension!! And it gets worse! -you cannot claim ANY expenses for travel/hotel etc. With the 30% rule expect to net 65%, without 55% (and you also have to fund your expenses from this residue income)

My advice is only deal with agencies that allow Ltd co, or off-shore solutions. Many will, otherwise walk away.

Hope that helps

[newguy11]

A Dutch management company currently as suggested by the agency will put me through their payroll.

[DS23]

[QUOTE=mcquiggd]Just seeking any advice from those that have been through the process of claiming the 30% tax allowance for expats working in Holland......
QUOTE]

is the end client putting you through their payroll?

[newguy11]

Take Home Greater in UK or Holland?

I'm thinking of contracting in Holland too, I've looked at the estimate given based on social security (employer & employees), wage tax & NI and management company cost. It comes to, £5k, a little more than esitmates for working in the UK given by the contractor calculators.

For £50 per hour the caluclators come to Your current net income per month is £4,790. This is 69% of your gross revenue. If I was under IR35 it comes to £3,787. Am I missing something here?

[WindyAnna]

My advice to you would be do not go and work in the Netherlands unless the rate is at least 40% better than in the UK. The 30% is only part of it, there are other hidden taxes which means you will still be paying an awful lot in deductions. My husband works over there, we have the same day rate, he has the 30% ruling, I bring in about 40% per month than he does.

The SOFI office over there will speak to you in English and send you all the forms you need. Your will have to send your CV and your employer will have to write with details of your role and why you have been employed.

You will need a permanent Dutch address, hotel is no good so if you aren't planning on renting you will need a tame person to let you use their address.

HTH

Windy

[mcquiggd]

Just seeking any advice from those that have been through the process of claiming the 30% tax allowance for expats working in Holland. The company I am joining seems pretty inexperienced in such matters, and recommended I talk to a KPMG guy. I am, to be specific, moving to Amsterdam.

He said his fee would be €975 + VAT.

Looked into it a bit and some expat oreinted tax advisors offer the same 'service' for €250 - €350.

But the 'service' seems to basically be:

Sending me some forms that should be available to everyone from the relevant IND department.

Asking me to fill them in.

Asking me to supply my passport, SOFI, work contract, proof of address / letter from my employer.

Asking my employer to sign a declaration that yes, I am not 'from round these parts', and work for them.


None of the companies offers a 'money back guarantee' so it seems pointless using one - or am I making a mistake here? Obviously a successful application could save me 10's of thousands... anyone been down this route before...?

Cheers!