Double Tax?

olig15

I have been offered a job in The Netherlands, working remotely from the UK. So I would still be living in UK, but being employed and paid (in USD) from Holland.

I will be on the Dutch payroll system and Dutch tax will be paid by my employer on my behalf.

Am I still liable to pay UK income tax (and NI)? Or would this be under the double taxation treaty, and only need to pay Dutch tax.

I did ring HMRC, but they had no idea either. Apparently someone would call me back (obviously never happened). Just asking here, before I waste more money sitting in the phone queue again.

Cheers.

Cook_County

Are you a PE of the Dutch company? Which employment law applies? Who will deal with social security?

antrobus

You might want to have a look at 'DT14008 - Netherlands: Employees' at http://www.hmrc.gov.uk/manuals/dtmanual/DT14008.htm. This makes reference to a Tax Bulletin article (TB64) at http://www.hmrc.gov.uk/bulletins/tb64.htm which includes a note regarding "Employment agencies operating in the Netherlands" which seems to cover some relevant ground. The answer might be there somewhere. It does say that "wages and other similar remuneration derived by a resident of one of the States in respect of an employment shall be taxable only in that State unless the employment is exercised in the other State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State." So presumably the answer might well depend on where your employment is being 'exercised'.

The article does provide some contact information for queries:-

Susan New
Revenue Policy International
Victory House
30-34 Kingsway
London
WC2B 6ES

Telephone: 020 7438 7250
E-mail: [EMAIL="Susan.new@ir.gsi.gov.uk"]Susan.new@ir.gsi.gov.uk[/EMAIL]

Of course given that TB64 dates to 2003 Ms New may have moved on, but it might be a start.

taxing

I think you might find that as your duties are in the UK and you will be remaining UK tax resident that you will be classed as being employed by an non UK resident employer.

Here the tax rules get a bit bizarre as the employer under an EEA agreement effective from 1 May 2010 has to open a UK Direct Payment PAYE scheme - they will need to appoint a UK agent - and pays over both employee and employers national insurance on what they pay you.

Then, you will also need to register for a Direct Payment employers PAYE Scheme and operate PAYE against your earnings.

Yes, you will need to tax yourself but the overseas company usually then appoints a UK agent to manage funds which will be passed to you to settle the monthly PAYE bill.

Go onto https://www.hmrc.gov.uk and find the Employers PAYE helpline number and call them - they are very good and will talk it through with you.

Regards