Working in Holland

[Phoenix]

I would like to thank you all for some valuable feedback on this thread......Cheers Guys..and Girls!

[ASB]

How does NI work out, while working abroad?
Surely you have to remain an employee of a UK firm to keep in the UK National Insurance system, allowing access to things such as E101/E102 certificates....Is this tied in with residency as well?

Generally you can only be resident in one country for NI purposes. Also within the EC you can opt to remain resident in your "home" country (for a few years). This can be useful if going to a high NI country. If you are being subjected to NI in another country it may be appropriate to pay voluntary NI contribuitons here (where allowed) to keep pension credit etc.

[Miss Ellie]

If you work in any country in the EEA and pay some form of social insurance in that country then your contributions there, count here for NI as long as your inform the correct Inland Revenue office that you are going to be abroad and working. (They send you some form of certificate.)

This means when you come back to the UK you can claim all social benefits i.e. jobseekers, maternity pay, paternity pay.

However some EEA countries have different pension schemes so your contributions may not count for a state pension here. (If there is one in existance when you retire.)

[Phoenix]

How does NI work out, while working abroad?
Surely you have to remain an employee of a UK firm to keep in the UK National Insurance system, allowing access to things such as E101/E102 certificates....Is this tied in with residency as well?

[NetwkSupport]

??

Sounds very familiar, is that an Italian Oil & Gas Client ???

I think i've gone for that job too.

[oxtailsoup]

You therefore work out the UK tax that would be due on this income. Then you can deduct under the provisions of the DTA tax paid in Holland (to a limit of the value of the UK tax due). Very often the dutch tax paid exceeds the UK tax due, which reduces the UK tax due to zero (this seems to be what happened to you).

yes that sounds familiar!

[ASB]

My accountant still had to fill out my UK tax return but I didn't have to pay tax.

Obviously didn't make myself entirely clear (not for the first time :-))

If you (or agent) had to fill in a UK tax return then you were still resident for tax purposes in the UK - or going to claim non residency for the year in question.

You therefore work out the UK tax that would be due on this income. Then you can deduct under the provisions of the DTA tax paid in Holland (to a limit of the value of the UK tax due). Very often the dutch tax paid exceeds the UK tax due, which reduces the UK tax due to zero (this seems to be what happened to you).

Alternatively it is possible that you didn't spend enough time in the UK to be UK resident simultaneously (travelling back most weekends will ensure you remain UK resident).

Your particular circumstances are undeniably that you did not end up with any further UK tax to pay (indeed most peoples will be that too). However, there is no guarantee that will be the case - different circumstances could give rise to a UK tax bill as well.

It also used to be possible to structure things to save quite a sizeable chunk or UK CT by making a loss by virtue of the company taking an assignment, which you as an individual were only prepared to take with a huge up front payment. I suspect now that it would be difficult to justify this though.

[oxtailsoup]

ASB, when I worked in Holland I was asked to fill in a form for the Inland Revenue by my accountant. I can't remember what the form was exactly because it was two years ago now but it was to basically say that I was working in Holland and paying Dutch tax. When I started to work back in the UK again I was required to inform the Inland Revenue again that I was back.

My accountant still had to fill out my UK tax return but I didn't have to pay tax. Again it was a while ago so I can't remember what went on the UK tax return.

Also when I started paying UK tax again I was given quite a nice tax rebate from Hector.

[ASB]

If you are working in Holland you have to pay Dutch tax and you will not be required to pay UK tax. There is a form to notify the Inland Revenue of this.

Since when?

If resident for tax purposes in Holland then Dutch taxes are due. If resident in the UK then UK taxes are due.

Simply being resident in Holland for tax purposes does not necessarily prevent you from being UK resident for tax purposes simultaneously.

If resident in both then taxes in both are payable, however then the provisions of the DTA between the UK and Holland kick in. Effectively you will get credit against UK taxes of the amount of Dutch taxes paid. Often this will eradicate any UK liability completely but it is not guaranteed.

The effect of the DTA agreements concluded is that generally you pay the higher. There are some countries we do not have DTA's with so there is no relief on the foreign tax paid at all. One of the penalties of a mondiale tax system.

[oxtailsoup]

If you are working in Holland you have to pay Dutch tax and you will not be required to pay UK tax. There is a form to notify the Inland Revenue of this.

Once you are on Dutch payroll you have two options. It is a while since I was on Dutch payroll but the basics I can remember is this...

Dutch tax/ni is quite high. Say 50% as an example.

You can either sign up to the 30% rule which means that you are in employment within a certain niche area. Advantages are that you only pay 30& tax. Disadvantages are that you cannot claim expenses such as travel and accomodation.

Second option is to pay normal tax and be able to claim all your expenses back.

When I was working there it worked out better to take the 30% rule.

Also the payroll company I was using (forced to use by the agency) was quite expensive too. They charged a sizeable monthly fee.

[mcquiggd]

Or per LADY.

[MikeP]

Do you think the £125 per day exes will cover fares and Hotel/digs?

£125 pd is plenty unless you're in an absurd location or in Frankfurt. Check whether it's per DAY or per NIGHT.

[Phoenix]

make sure that is pounds and not euros

also the tax situation in Holland is 'odd'...the 30% rule etc...

You sound just the person to ask then.
I don't want to sound green but, yes it is £ and Why the 30% would I pay UK tax as well?
Do you think the £125 per day exes will cover fares and Hotel/digs?

[NickIT]

make sure that is pounds and not euros

also the tax situation in Holland is 'odd'...the 30% rule etc...

[Phoenix]

Anyone got some info for me?
I have never contracted abroad, how does an ICT Support Engineer
12month contract paying a rate £400 per day + £125 per day expenses sound?