Reply to: Has anyone contracted in Netherland via their UK limited recently???

[Andy Hallett]

Has your agent suggested the correct way of doing this? Surely they must have some experience and a turnkey solution / information.

Netherlands is a great place to contract if you get it right, not so good if you don't do the basics correctly.

[EAFS]

Hi,

Or is it that all go with Umberella option to avail 30% ruling. Atleast I could not find anyone in search.

If you do, why did you choose to do so? do you pay taxes in UK or Netherlands.

What are the do's and dont's.

Would help.

Regards,

If you would like to receive a salary simulation for the position in the Netherlands then feel free to PM me and I can send you the appropriate information. As stated in the previous post you will be required to pay tax in the Netherlands from day 1, You are correct in the fact that you will not be taxed on the same income twice as long as the countries you work between have a double taxation agreement, You may be surprised at the retention in the Netherlands. They offer other tax incentives to ex-pat workers.

[expat]

I am getting mixed advice which I understood from the all the search on this website...No first hand experience.

It seems like I will have to go into the waters to check how deep they are (I will swim out if too deep).

They cannot tax me for the same earning twice in EU. Correct?

"The E101 certificate shows the authorities in the foreign country that you pay tax National Insurance in the UK, and so do not need to need to make social security contributions in that country."

What is the harm in applying in advance and present it at the time of applying for VAR at dutch authorties.

The E101 is about social security contributions (NICs in the UK), not about tax. Nothing to do with tax. If you have an E101 then you don't have to pay social contributions in the other country, but it doesn't get you off paying tax.

Two countries can each tax you on the same income, but you should be able to do something to remove the effects of that double taxation - the difference is not pedantic. There are a number of possibilities, of which the usual default possibility is that one country allows tax that was paid in the other, to be offset against tax due in that country.

Precision is important here, do not confuse unlike things. "tax paid in the other country can be offset against tax due in this country" is not at all the same thing as "income that is taxable in the other country is not taxable in this country" - the first is true, the second is false. The difference can be significant.

[sunflower]

When working in the Netherlands you are required to pay tax in the Netherlands from day 1.
You can use your limited company however you will have to contact the Dutch tax office (Belastingdienst) to receive a VAR certificate. The Agency may request proof of payment of taxes in the Netherlands. You will almost certainly have to engage with a Dutch accountant to make monthly payroll tax deductions. The Netherlands operate chain law which means the client is vigilant that tax is paid in the Netherlands otherwise they may be found liable.

Agree with EAFS. Unless you are just visiting the customer in Holland, you need to pay tax in Holland. The authorities see you as having a presence in the country (an establishment) just by getting a desk at a customer's office. Either you pay taxes like this and have extra admin via a local accountant, or you can go down the payroll route. (If you have the 30% rule, the rention rates are good on payroll). A friend of mine has a UK limited and works for a Dutch client remote, spending a couple of days every 2 months at their office. Something like that is ok and you would pay tax on that through your UK limited in the UK.

[tigerinopen]

I am getting mixed advice which I understood from the all the search on this website...No first hand experience.

It seems like I will have to go into the waters to check how deep they are (I will swim out if too deep).

They cannot tax me for the same earning twice in EU. Correct?

"The E101 certificate shows the authorities in the foreign country that you pay tax in the UK, and so do not need to need to make social security contributions in that country."

What is the harm in applying in advance and present it at the time of applying for VAR at dutch authorties.

[cojak]

Norrahe ought to be able to help with this, so bump.

[EAFS]

Must pay tax from Day 1 in The Netherlands

When working in the Netherlands you are required to pay tax in the Netherlands from day 1.
You can use your limited company however you will have to contact the Dutch tax office (Belastingdienst) to receive a VAR certificate. The Agency may request proof of payment of taxes in the Netherlands. You will almost certainly have to engage with a Dutch accountant to make monthly payroll tax deductions. The Netherlands operate chain law which means the client is vigilant that tax is paid in the Netherlands otherwise they may be found liable.

[Martin at NixonWilliams]

Please see these links:
HM Revenue & Customs: Going to work abroad

and

CA3837 - Self-employed temporarily working in another country in the European Economic Area

Would I have to apply for E101?

Does your other clients (contractors) apply for this?

The CA3837 is for self-employed workers. If you are working through a UK limited company I believe the correct form to use is form CA3822.

The E101 certificate shows the authorities in the foreign country that you pay tax in the UK, and so do not need to need to make social security contributions in that country.

Because the contract is short term these forms should not really be necessary as it is unlikely you will be subject to social security contributions in the Netherlands and you will not be away from the UK long enough to consider the need to stop making contributions here.

If your circumstances change, for example if the contract is extended, then you should obtain the necessary forms.

[stek]

Are you sure you are cut out for contracting abroad?

[tigerinopen]

Yes, it is possible to be resident in more than one country for tax purposes.

Please see these links:
HM Revenue & Customs: Going to work abroad

and

CA3837 - Self-employed temporarily working in another country in the European Economic Area

Would I have to apply for E101?

Does your other clients (contractors) apply for this?

[tigerinopen]

Or a method to extensively search the forums for the same questions that have been asked many times before...

https://www.google.co.uk/search?q=ne...m=122&ie=UTF-8

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

With all due respect, I did not find anyone sharing their experience anywhere after hours of search. There is so much information but scattered. This thread may help someone else too, hoepfully if people share their first hand experience of contracting in NL through UK limited company,

[northernladuk]

If only there was a guide or two in the "Contracting Overseas" section about contracting in the Netherlands....

---->

Or a method to extensively search the forums for the same questions that have been asked many times before...

https://www.google.co.uk/search?q=ne...m=122&ie=UTF-8

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

[Martin at NixonWilliams]

This certainly helps, thanks. My contract would be for 6 months. I know would be a UK resident but can a person or limited company be resident in 2 different countries at the same time for the same duration, specially for taxation purposes.

Yes, it is possible to be resident in more than one country for tax purposes.

[stek]

You'll find 9 times out of 10 the agent will insist on using their local brolly or not consider you, unless your are super-stellar of course!

What kind of role is it and what happened to the Ireland one?

[tigerinopen]

Is your contract short term? We have had a number of clients working in the Netherlands on short term engagements and I don't recall any paying taxes there. It might be best to run your circumstances by an accountant who specialises in foreign taxes, or even the Dutch authorities.

I hope this helps.

Martin

This certainly helps, thanks. My contract would be for 6 months. I know would be a UK resident but can a person or limited company be resident in 2 different countries at the same time for the same duration, specially for taxation purposes.

I will start another thread in appropriate forum looking for foreign tax specialists here or some other forums.