Reply to: Dont contract in Amsterdam

[norrahe]

The fact is that Holland have a chain law which means that if you don't pay the tax then the end client has to. I did ask the end client to go direct but this was quickly refused.
I don't take too much notice of some of the posters on here because they clearly are just giving general advice , there is little point in an accountant because you have to go through the management company due to chain law previously mentioned.

I was talking about speaking to an accountant (if you have one) over here about what you should be doing for future reference when contracting in EU. Some of them might know what you have to put in place from a tax perspective before you start a contract and thus saving you the hassle,

It just pays to do your research before you go to said country.

I happen to have done quite a bit of research and spoken with Dutch accountants as I intend to move over there so don't want to go in blind and not knowing what my short and long term options are and ensure that although I may be paying the correct tax that I'm getting the most out of my money.

[AccessDenied]

If the agent is halfway decent and deals with international clients on a regular basis then you should check what arrangements they have in place. One I'm currently dealing with have a brochure on the options available to interim candidates, which is useful, but it pays to research the options.

If you are staying longer then an umbrella is just your short term option till you have set yourself up either as a B.V or a sole proprietor.

The problem you will find is that some accountants are not aware of the options available should you contract short term in Europe as I have found out. So it is best to research as much as possible and find an accountant that can offer you decent advice.

The fact is that Holland have a chain law which means that if you don't pay the tax then the end client has to. I did ask the end client to go direct but this was quickly refused.
I don't take too much notice of some of the posters on here because they clearly are just giving general advice , there is little point in an accountant because you have to go through the management company due to chain law previously mentioned.

[norrahe]

If you'd stayed here as tax resident, you'd have filled in a M form at the end of your first year and got almost all of it back, for your first year. If you weren't here long enough, you would have remained a tax resident of the UK and could have got your accountants to argue the case for having it returned from Holland because it rightfully belonged to the HMRC, maybe.

If you'd lived and worked in Holland, you'd have got half your mortgage payment back each month from the taxman too, and your missus or partner would have received their tax allowance in cash like a wage for being a homemaker.

Also, you let your agent arrange your international payroll and didn't make an effort to see what the alternatives to their 'scheme' were? Really? No seriously... really? I do hope others are advised and learn from your mistakes, but those mistakes weren't Holland's fault.

If the agent is halfway decent and deals with international clients on a regular basis then you should check what arrangements they have in place. One I'm currently dealing with have a brochure on the options available to interim candidates, which is useful, but it pays to research the options.

If you are staying longer then an umbrella is just your short term option till you have set yourself up either as a B.V or a sole proprietor.

The problem you will find is that some accountants are not aware of the options available should you contract short term in Europe as I have found out. So it is best to research as much as possible and find an accountant that can offer you decent advice.

[SizeZero]

If you'd stayed here as tax resident, you'd have filled in a M form at the end of your first year and got almost all of it back, for your first year. If you weren't here long enough, you would have remained a tax resident of the UK and could have got your accountants to argue the case for having it returned from Holland because it rightfully belonged to the HMRC, maybe.

If you'd lived and worked in Holland, you'd have got half your mortgage payment back each month from the taxman too, and your missus or partner would have received their tax allowance in cash like a wage for being a homemaker.

Also, you let your agent arrange your international payroll and didn't make an effort to see what the alternatives to their 'scheme' were? Really? No seriously... really? I do hope others are advised and learn from your mistakes, but those mistakes weren't Holland's fault.

[AccessDenied]

Similar complaint, way different style (word count).

I'm not complaining , just advising , I am sure there are people who take any contract right now but you need to know that deductions are very high on short term contracts

[AccessDenied]

WHS and then some.

With 40% retention, something has one wrong. Have worked in Holland before there's no way you owe that much in tax.

A other fellow posters have said, do your research. Although hindsight is a wonderful thing I've found dutch clients super charge my rate to mitigate the effects of tax. Did you ask? Remember, don't ask don't get so don't complain.

Sure there is a 30 percent tax relief but the tax office has to award you that ,under normal circumstances most contractors get it , usually after a wait of 2 - 3 months , I didn't because it was too short a contract. Still makes the tax deduction roughly 1.5 times what I was paying in the US even with the 30 percent.

[scooterscot]

Also you could have checked that you are eligible for the 30% ruling as well if you are operating via an umbrella which from the sounds of it you seem to be.

The 30% ruling - De 30% regeling

WHS and then some.

With 40% retention, something has one wrong. Have worked in Holland before there's no way you owe that much in tax.

A other fellow posters have said, do your research. Although hindsight is a wonderful thing I've found dutch clients super charge my rate to mitigate the effects of tax. Did you ask? Remember, don't ask don't get so don't complain.

[norrahe]

I was given a spreadsheet by the agent so I knew the deductions beforehand which showed about 50 percent , I didn't care about this because it was only for one month , I was just warning anyone else going over that the deductions are higher than what agents tell you.

Most of us going over would have spoken with an accountant rather than a pimp to clarify what our tax liabilities should be.

Dutch tax rates 2011

Also you could have checked that you are eligible for the 30% ruling as well if you are operating via an umbrella which from the sounds of it you seem to be.

The 30% ruling - De 30% regeling

[AccessDenied]

Just a word to confirm that I am stupid and thick and did not bother to conduct any research about tax liabilities.

FTFY

I was given a spreadsheet by the agent so I knew the deductions beforehand which showed about 50 percent , I didn't care about this because it was only for one month , I was just warning anyone else going over that the deductions are higher than what agents tell you.

[SueEllen]

No. Ultimately tax rates are pretty similar all over Europe, once you factor in the deductions and allowance. German and Swiss infrastructure and services are excellent because they are run and staffed by German and Swiss engineers and social scientists, plus quite a few Turkish technicians and customer service people. British infrastructure and services are run by clueless tulipwits with MBAs and staffed by semi literate chavs. That's why they're tulip. Obviously there are exceptions.

But one of the problems in the UK is this:
Jeremy Corbyn MP » Our railways

Where operators fail the public sector has to step in. The failure of Connex South Eastern forced the SRA to put in management to run the South East Trains franchise. Under public ownership it has resulted in a better service with fewer complaints. The case for it staying in public hands is not just a Trade Union demand, but supported by the users who, after all, are in a good position to judge.

[Ignis Fatuus]

wibble... (Mod)

Wrong thread

Sorry about that EO - I wouldn't have neg repped you had I realised it was a mistake. +ve rep coming shortly... CJ

[Ignis Fatuus]

No. Ultimately tax rates are pretty similar all over Europe, once you factor in the deductions and allowance. German and Swiss infrastructure and services are excellent because they are run and staffed by German and Swiss engineers and social scientists, plus quite a few Turkish technicians and customer service people. British infrastructure and services are run by clueless tulipwits with MBAs and staffed by semi literate chavs. That's why they're tulip. Obviously there are exceptions.

You're quite right. Apologies for the Friday Afternoon posting.

[Mich the Tester]

Is there a witholding tax arrangement with Holland ?

I got stung for a big tax bill once, but I was able to claim the witholding tax (20%) back
that was for a gig in Singapore

Dunno. However, the trick in Holland is to deliberately pay too much tax then claim it back a year later. You'll get around 5% interest om the overpaid tax, which is a lot more than any bank will give you.

[EternalOptimist]

Is there a witholding tax arrangement with Holland ?

I got stung for a big tax bill once, but I was able to claim the witholding tax (20%) back
that was for a gig in Singapore

[Mich the Tester]

Let us say 5% to the umbrella, that's less than 60% total tax and deductions, including "employer's" contributions. That is not OTT. What higher earners sometimes get away with in the UK is IMHO OTT, and the reason why the UK's services and infrastructure are so crap.

No. Ultimately tax rates are pretty similar all over Europe, once you factor in the deductions and allowance. German and Swiss infrastructure and services are excellent because they are run and staffed by German and Swiss engineers and social scientists, plus quite a few Turkish technicians and customer service people. British infrastructure and services are run by clueless tulipwits with MBAs and staffed by semi literate chavs. That's why they're tulip. Obviously there are exceptions.