Working for a Dutch company from the UK... best solution?

goingdutch2021

Hello, I have a bit of a conundrum.

A small Dutch company have, in principal, offered me a job. We’re now in a pickle working out how this is practically going to work. This is new territory to both myself and the small Dutch company. I realise it would usually be the company’s responsibility to sort out the arrangements – but here we are. I'd like to be in a position to offer a solution.

The situation:

• I will be working from my home in London.
• They are based in Amsterdam.
• The long term plan (in 18-24 months) is for me to potentially move to Amsterdam (though if wfh works out, this may not transpire) – for now I will travel there a couple of days every 8 weeks.
• Ideally I would be employed directly as a full-time member of staff. It is most certainly a full-time position.

I’m trying to work with them to suss out the best arrangement for us both and am finding it hard to balance the pitfalls and benefits with no understanding of Dutch law.

How would they employ me as a staffer based in the UK? Is there anything in Dutch law that they should be specifically looking out for? Is it simple? Should they consider using an umbrella company? Would UK employment laws trump Dutch ones? Does anybody have any recommendations for any Dutch organisations that I can point them at for advice?

The other option is that I could set myself up as a consultant (I already am self-employed; a sole trader) but I’m not sure what I should be looking out for if I’m working for a Dutch company. Also – how would I be paid in Euros without losing a chunk of money in the Euros to Sterling conversion? Should I ask to be paid in Sterling? Is this relatively simple enough?

Oh, and of course… Brexit. Will that have an impact?

I appreciate this is a rather complex, dull question… but essentially… does anybody have any advice for a mutually beneficial arrangement between myself and the Dutch company, where I have relative job security, don’t stumble on hidden taxes or lose heaps of money to conversion rates, and neither of us is burdened with piles of paperwork (possibly the least of my concerns)?

I appreciate any advice and signposting.

AskAsk

i think the dutch company will need to do the background work as they will need to work out how you are treated for tax under their tax law and they will be the people who will be paying you and deducting tax at source.  you would have to declare the earnings in the UK as foreign income so have a look on HMRC website on how foreign income is treated when it has already been taxed at source.   i think you pay income tax in the UK, less income tax you have already paid at source.

you can get paid in euro and get it paid into a bank account that is best for conversion.  i have heard the like of starling but you can ask about these sort of banks on the bank forum section.

Grumpy_chap

I suggest a Consultant under Ltd Co is the simplest way to manage this. 
You don't mention what trade / industry sector you work in, but can your professional trade body offer a simple PSC (professional services contract) that allows for overseas client?
Your Accountant should be able to advise relating to tax issues and currency conversion - neither need to be unduly onerous.
I cannot advise on the impact of Brexit.

Farel01

My partner is in a similar situation at the moment, the Norwegian company he's tentatively accepted an offer on is doing their research, initially they we're going to do this through an umbrella company, but now looks like their employment lawyer actually suggested being employed directly is better. Still talking through how that works with the double taxation treaty (which seems fairly straightforward really) and the social security / national insurance which is less straight forward. Not even thought about salary in Kroner so thanks actually for that, I'll bring it up with him. 

But AskAsk is right - I think the company should be doing this research and probably speaking to an expert. 

AskAsk

Grumpy_chap said:

I suggest a Consultant under Ltd Co is the simplest way to manage this. 
You don't mention what trade / industry sector you work in, but can your professional trade body offer a simple PSC (professional services contract) that allows for overseas client?
Your Accountant should be able to advise relating to tax issues and currency conversion - neither need to be unduly onerous.
I cannot advise on the impact of Brexit.

the OP would have to find out about income tax law in the netherland if he did this as he would have to pay tax to the Netherland taxman if he is earning there.  a tax accountant in the UK would not have any knowledge of how tax is adminstered in the Netherland, so it will be easier for the company to pay the OP as an employee.   That way, the OP won't be responsible for paying tax over there as it would be done at source.

Grumpy_chap

AskAsk said:

Grumpy_chap said:

I suggest a Consultant under Ltd Co is the simplest way to manage this. 
You don't mention what trade / industry sector you work in, but can your professional trade body offer a simple PSC (professional services contract) that allows for overseas client?
Your Accountant should be able to advise relating to tax issues and currency conversion - neither need to be unduly onerous.
I cannot advise on the impact of Brexit.

the OP would have to find out about income tax law in the netherland if he did this as he would have to pay tax to the Netherland taxman if he is earning there.  a tax accountant in the UK would not have any knowledge of how tax is adminstered in the Netherland, so it will be easier for the company to pay the OP as an employee.   That way, the OP won't be responsible for paying tax over there as it would be done at source.

I disagree.  T
OP's Ltd Co will be based in UK, and the work is predominantly done in the UK apart from a couple of days every 8 weeks.  
This simply counts as export contract forward the OP's Ltd Co.  The OP is employed in the UK.

AskAsk

Grumpy_chap said:

AskAsk said:

Grumpy_chap said:

I suggest a Consultant under Ltd Co is the simplest way to manage this. 
You don't mention what trade / industry sector you work in, but can your professional trade body offer a simple PSC (professional services contract) that allows for overseas client?
Your Accountant should be able to advise relating to tax issues and currency conversion - neither need to be unduly onerous.
I cannot advise on the impact of Brexit.

the OP would have to find out about income tax law in the netherland if he did this as he would have to pay tax to the Netherland taxman if he is earning there.  a tax accountant in the UK would not have any knowledge of how tax is adminstered in the Netherland, so it will be easier for the company to pay the OP as an employee.   That way, the OP won't be responsible for paying tax over there as it would be done at source.

I disagree.  T
OP's Ltd Co will be based in UK, and the work is predominantly done in the UK apart from a couple of days every 8 weeks.  
This simply counts as export contract forward the OP's Ltd Co.  The OP is employed in the UK.

i don't know anything about the tax law in the netherland, but as the OP is billing a company for work that is based over there. there may be tax liability. the OP could find this out by doing some research or ask the company to do the research for him. if you were to export goods from the UK to the netherland, would there not be an export tariff set by Netherland? i am thinking there would be, and so there may something similar for export of service tariff set by the netherland.

goingdutch2021

AskAsk said:

Grumpy_chap said:

AskAsk said:

Grumpy_chap said:

I suggest a Consultant under Ltd Co is the simplest way to manage this. 
You don't mention what trade / industry sector you work in, but can your professional trade body offer a simple PSC (professional services contract) that allows for overseas client?
Your Accountant should be able to advise relating to tax issues and currency conversion - neither need to be unduly onerous.
I cannot advise on the impact of Brexit.

the OP would have to find out about income tax law in the netherland if he did this as he would have to pay tax to the Netherland taxman if he is earning there.  a tax accountant in the UK would not have any knowledge of how tax is adminstered in the Netherland, so it will be easier for the company to pay the OP as an employee.   That way, the OP won't be responsible for paying tax over there as it would be done at source.

I disagree.  T
OP's Ltd Co will be based in UK, and the work is predominantly done in the UK apart from a couple of days every 8 weeks.  
This simply counts as export contract forward the OP's Ltd Co.  The OP is employed in the UK.

i don't know anything about the tax law in the netherland, but as the OP is billing a company for work that is based over there. there may be tax liability. the OP could find this out by doing some research or ask the company to do the research for him. if you were to export goods from the UK to the netherland, would there not be an export tariff set by Netherland? i am thinking there would be, and so there may something similar for export of service tariff set by the netherland.

Hello,
I'm pretty sure there's a double-taxation agreement between the UK and the Netherlands if I were to go down the route of self-employment. 

AskAsk

goingdutch2021 said:

AskAsk said:

Grumpy_chap said:

AskAsk said:

Grumpy_chap said:

I suggest a Consultant under Ltd Co is the simplest way to manage this. 
You don't mention what trade / industry sector you work in, but can your professional trade body offer a simple PSC (professional services contract) that allows for overseas client?
Your Accountant should be able to advise relating to tax issues and currency conversion - neither need to be unduly onerous.
I cannot advise on the impact of Brexit.

the OP would have to find out about income tax law in the netherland if he did this as he would have to pay tax to the Netherland taxman if he is earning there.  a tax accountant in the UK would not have any knowledge of how tax is adminstered in the Netherland, so it will be easier for the company to pay the OP as an employee.   That way, the OP won't be responsible for paying tax over there as it would be done at source.

I disagree.  T
OP's Ltd Co will be based in UK, and the work is predominantly done in the UK apart from a couple of days every 8 weeks.  
This simply counts as export contract forward the OP's Ltd Co.  The OP is employed in the UK.

i don't know anything about the tax law in the netherland, but as the OP is billing a company for work that is based over there. there may be tax liability. the OP could find this out by doing some research or ask the company to do the research for him. if you were to export goods from the UK to the netherland, would there not be an export tariff set by Netherland? i am thinking there would be, and so there may something similar for export of service tariff set by the netherland.

Hello,
I'm pretty sure there's a double-taxation agreement between the UK and the Netherlands if I were to go down the route of self-employment. 

i get foreign income from Ireland because i hold shares that are domicile in Ireland.  i don't get taxed at source, either for dividends or capital gains, and i have to declare the tax to HMRC through my self assessment.  it does ask on the form if i have already paid any tax at source.

i had some US shares given to me by my employer, which i sold.  i received a tax demand from the US tax man even though i am not a US resident.  i ignored it and they kept sending it for a few years, but i have since moved address so i may be a fugutive in the US for all I know, lol 

Grumpy_chap

goingdutch2021 said:

AskAsk said:

Grumpy_chap said:

AskAsk said:

Grumpy_chap said:

I suggest a Consultant under Ltd Co is the simplest way to manage this. 
You don't mention what trade / industry sector you work in, but can your professional trade body offer a simple PSC (professional services contract) that allows for overseas client?
Your Accountant should be able to advise relating to tax issues and currency conversion - neither need to be unduly onerous.
I cannot advise on the impact of Brexit.

the OP would have to find out about income tax law in the netherland if he did this as he would have to pay tax to the Netherland taxman if he is earning there.  a tax accountant in the UK would not have any knowledge of how tax is adminstered in the Netherland, so it will be easier for the company to pay the OP as an employee.   That way, the OP won't be responsible for paying tax over there as it would be done at source.

I disagree.  T
OP's Ltd Co will be based in UK, and the work is predominantly done in the UK apart from a couple of days every 8 weeks.  
This simply counts as export contract forward the OP's Ltd Co.  The OP is employed in the UK.

i don't know anything about the tax law in the netherland, but as the OP is billing a company for work that is based over there. there may be tax liability. the OP could find this out by doing some research or ask the company to do the research for him. if you were to export goods from the UK to the netherland, would there not be an export tariff set by Netherland? i am thinking there would be, and so there may something similar for export of service tariff set by the netherland.

Hello,
I'm pretty sure there's a double-taxation agreement between the UK and the Netherlands if I were to go down the route of self-employment. 

Double taxation agreement is relevant if you are employed by the Dutch company.

Double taxation agreement may be relevant if you are self-employed contractor to the Dutch company.  I don't advise this route (sole-trader)

I recommend own Ltd Co and PSC consulting services to the Dutch company.  Seems a very simple way to proceed.

Dox

If you google on the words 'employed by dutch company but based in the UK' you will get a lot relevant links - some a bit out of date, others very recent - but likely to be more accurate/focussed than some of the responses here.