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bigduckontax, Accountant
Category: Tax
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I am about to go to Amsterdam months on a business trip

Customer Question

I am about to go to Amsterdam for 6 months on a business trip from 4th January to the 1st July. In that time, do I still have to pay full tax in the UK, since I will be working overseas. If I can get some tax relief, how do I set this up?
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith, one of the experts on Just Answer, and please to be able to help you with your question. As you will have been resident in the UK for over 183 days in the 15/16 tax year you are liable for UK taxation on your world wide income 6 April 2015 - 5 April 2016. Any tax deducted by Holland will, under the Double Taxation Convention between the UK and the Netherlands which precludes the same income stream from being taxed in both jurisdictions, be allowed as a tax credit against any liability in the other. The Dutch tax year runs with the calendar year so you may well be liable to their tax in which case the Convention will still apply, but of course in the reverse. Expatica gives the following guidance: 'Non-residents can also apply to be treated as residents for tax purposes (in order to gain access to Dutch deductible items) and an additional category of partial non-resident taxpayers covers those eligible for the so-called 30 percent ruling (see below). As a resident taxpayer you are taxed on your assets worldwide.' Holland is one of the most highly taxed regimes in the UK so to take advantage of the 30% rule may well be of benefit: 'This is a tax incentive for employees, recruited from abroad who bring specific skills to the Netherlands. It acknowledges the additional expenses incurred by expats (extraterritorial costs) by allowing the employer to grant a tax-free lump sum to cover these costs up to a maximum of 30 percent of the sum of wages and allowances. Applications (completed by both employer and employee) should be made to the Belastingdienst Limburg Kantoor Buitenland in Heerlen. The conditions for qualifying for the 30 percent ruling were changed as of 2012 to be more relevant to the intended focus group.'I do hope that my reply has been of assistance.