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Sam
Sam, Accountant
Category: Tax
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I have just moved to the Netherlands and am about to sign a

Resolved Question:

I have just moved to the Netherlands and am about to sign a 6 month contract that should run for 1 year I am being paid 2500.00 euros gross I am a UK resident and the contract is on a self employed basis.
Can you please tell me my tax liability and whether I have to pay NI
Submitted: 3 years ago.
Category: Tax
Expert:  Sam replied 3 years ago.

Hi

Thanks for your question - I am Sam and I am one of the UK tax experts here on Just Answer.

As you will not complete a full tax year out of the UK (as you only recently left and will return back to the UK before 05/04/2016) then for UK tax purposes you will remain as a UK resident and therefore liable to UK tax, and will also remain liable to UK National Insurance (both Class 2 and Class 4)

So you will continue to complete self assessment tax returns.

But do alert HMRC of your move, and complete form P85 for them - link for this form is here

http://www.hmrc.gov.uk/cnr/p85.pdf

This will allow HMRC to formally advise you of your residency and tax position.

If you have any follow up questions, then please do ask. I am about to meet with clients but will respond as soon as I am available (no more than 2 hours)

Thanks Sam

Customer: replied 3 years ago.

I have signed a 6 month contract but this will be extended and I will be out of the country for more than 12 months.

If I get paid into a uk bank account will I be liable to tax in the uk ?

The contract states that I am self employed and will be paid gross is it the same tax system as the uk and pay the tax at the end of the year in the Netherlands ?

Do I need to pay NI in the Netherlands ?

Expert:  Sam replied 3 years ago.
Hi Les
Thanks for your response
Its got to be for a full tax year - not just a full year (as advised above) and you will not remain out of the UK for a full tax year (as that means you have to be out of the UK working and living from now, until beyond 05/04/2016, so then the full tax year from 06/04/2015 to 05/04/2016 has been met)
So yes you will remain liable to UK tax and liable to national Insurance in the UK. I cannot advise on the Netherland NI position as this is a UK tax forum, so we are experts in the UK tax related legislation, which I am sure you can appreciate.
You are best asking the business with whom you have signed the contract if they can advise on the Dutch position.
Thanks
Sam
Customer: replied 3 years ago.

Hi Sam

So I can be treated as a self employed person in the UK pay my UK Ni and be paid by a company registered in the Netherlands.

Will this mean that I will be paid gross per month and pay all of my tax at the end of the financial year when I fill in my end of year tax return.

Thanks

Les

Expert:  Sam replied 3 years ago.
Hi Les
Thanks for your further questions.
If this work is employment (rather than self employment) then you will declare this as employment (foreign) on your self assessment tax return.
I cannot advise the Dutch tax position as already advised, you will need to check with the company whom is to engage you - whether they plan to deduct tax from your income, but if you are being employed by them, I would imagine they WILL deduct Dutch tax from your income.
If this is the case, then you also declare the tax suffered on your self assessment tax return, so you are not charged tax twice on the same income (this is under the double tax treaty we have with the Netherlands)
let me know if you have any follow up questions, but it would be appreciated if you could rate/accept the answer, as this ensures I am credited for my time
Thanks
Sam
Sam and 2 other Tax Specialists are ready to help you
Customer: replied 3 years ago.

Hi Sam


So if I am technically still a british tax payer will I fill in my british tax return at the end of the year and pay tax here.


As a self employed person working in the EU and being paid into a british bank account ( the double tax treaty I assume works both ways )


 


Sorry first time I have used this so didn't realise about the Rating thing.


 


Regards Les

Expert:  Sam replied 3 years ago.
Hi Les

Yes that's right - and IF you suffer any Dutch tax (which you may not - so check with the client/business engaging you) then you claim this.

But I would assume as you will live and work and be paid in the Netherlands - then they may call first dibs on that income for tax purposes.

Thanks

Sam