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Thanks and I will have a more detailed look. But I always understood that if I decide to pay £50.000 (previously £30.000), as a number of my friends in the UK do in similar circumstances, I can be a Non Dom and pay tax on foreign income only if I remit to money to the UK. Has this now changed?
No, it hasn't changed. The non-dom rules apply to non-UK source income. The fact that you are doing the work in the UK overrides that unless your employer has an agreement from the Dutch and UK tax authorities to say that, in your specific case, your earnings will only be taxable in the Netherlands.I've had clients who live abroad and who work for a UK based company and they pay tax in the overseas country if they are tax resident there unless they work in both countries in which case the earnings are split for tax purposes in which case part may be taxable in both countries with relief for double taxation being given. You should consult your employer's in-house accountants.
Ah ok that clarifies it, so if it is income from a non UK source for which I have not done work in the UK, which for example applies to income from investments in NL then the non dom rules apply, but not if I work in the UK on behalf of a Dutch legal entity.
Not sure whether I can ask a related question still?
That's the jist of it. It can become more complicated if an individual is effectively doing the job they used to do, in the Netherlands in your case possibly, by remotely accessing company computer servers from abroad.Waht is your other question?
it relates to redundancy payout and PAYE information (could well be additional charge )
I am employed by a UK legal entity of a big multinational. If I were to receive a lumpsum (potentially redundancy, not sure, or a negotiated "deal") from a legal entity based in NL from the same Multinational, will this amount be reflected on the P45or P60 of the UK based PAYE tax reference? I am not sure what happens here, but would find it strange that two different legal entities (one UK and one Dutch) go on the same PAYE tax reference.
In order to get a redundancy payment (which is a termination offer after many years of service all over the world) I need to be repatriated to the Netherlands where my employer can apply the Dutch redundancy rules for me. So I will be placed on a payroll of the Dutch legal entity I started with in the Netherlands many years ago and get my payout in the Netherlands. However, I will not migrat to the NL but only be there for a few months and then return to the UK.
Ok thanks, ***** ***** it up with them, though I am unclear as to whether the P45 form here in UK can show the lumpsum amount which originates from a Dutch source. Would have thouight not possible, but don't know whom to ask.