Sole Trader - Overseas - am I legal

mikeaward

In February 07 I took a job with a company based in Amsterdam. It was a short term contract so I thought I'd start up a consultancy, invoicing them montly and see where it took me.

I filled in the forms notifying the HMRC that I was now a sole trader
I kept my bank account in the UK (I haven't a Dutch Bank Account)
I kept my home in UK
Renting a flat in Holland (9 month contract)

So my main question is whether I am legally above board paying tax in the UK as opposed to Holland where I guess I'm employed and living:

Also can I claim tax relief on:
My Rent in Holland
Occasional air fares to and from UK
Daily travel to and from work (flat in Haarlem to Amsterdam)

I guess I should have hired an accountant but I was out here before I knew it and it's really taken off.

Many thanks for any assistance.
Mike

martindow

I would contact the Inland Revenue as I have found them very helpful. This must be a common situation so I am sure they should be able to advise. Maybe you should also contact the Dutch equivalent to see what they have to say.

richt71

Don't know about Holland but most European countries have a tax rule of 183 days. So whichever country you work in for 183 days then you're liable to pay tax there. I think Holland will have a double tax treaty so you'll only be liable for tax in one country while you're abroad.