# Living in UK employed for a dutch company!



## marabu (Apr 4, 2015)

Hi everyone,

I currently live in England (6 years now) even though I am originally from Italy. All these years I have been a UK resident and paying taxes to HRMC.

I have now been offered a position for a dutch company based in Amsterdam, and I will go to discuss the salary etc. next week.

Please note that this is a remote position and I will NOT relocate to Netherlands, so I can work from home in England.

The company does not have a UK branch, so from what I have read online my options are :
-Open a LTD here in UK and bill them as if I was a contractor
-Getting paid by them as a normal employee, but in this case I am not sure who should I pay my taxes to? Will I taxed as if it was a normal UK income with UK taxation?

Does anyone have any more information on this? And what are the pros and cons of both options...I would like to know these things in advance in order to negotiate the best salary possible (range 60-80k euros).

Thanks!!


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## Joppa (Sep 7, 2009)

You'll just be taxed as a UK tax resident with overseas income. As there is tax treaty between NL and GB, you won't be taxed twice, but you still have to declare your Dutch income on your tax return, and if you owe any tax to UK, you have to pay through self-assessment. So for example, if you are taxed at 25% in NL and 20% in GB and they have already deducted the Dutch tax before paying you, you won't owe any tax in UK, but if you are taxed at 15% in NL and 20% in GB, you owe 5% tax to UK (HMRC). In reality it's more complicated as there is personal allowance to factor in (amount you can earn in UK before you start paying tax).

If they set up a UK entity and pay you, it will involve them in a lot of extra work and expenses, including running PAYE scheme and your UK NI contributions and employer's part. So they probably won't do.

Read some of the options in Overseas Employers « TaxAid.


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## marabu (Apr 4, 2015)

Joppa said:


> You'll just be taxed as a UK tax resident with overseas income. As there is tax treaty between NL and GB, you won't be taxed twice, but you still have to declare your Dutch income on your tax return, and if you owe any tax to UK, you have to pay through self-assessment. So for example, if you are taxed at 25% in NL and 20% in GB and they have already deducted the Dutch tax before paying you, you won't owe any tax in UK, but if you are taxed at 15% in NL and 20% in GB, you owe 5% tax to UK (HMRC). In reality it's more complicated as there is personal allowance to factor in (amount you can earn in UK before you start paying tax).
> 
> If they set up a UK entity and pay you, it will involve them in a lot of extra work and expenses, including running PAYE scheme and your UK NI contributions and employer's part. So they probably won't do.


HI Joppa,

Many thanks for your reply.

So from what I understand if I get paid 60000 euro which should be around 43k gbp at current rate, I will be paid gross from the employer, then I have to declare the income in UK and I will be taxed from HRMC as if it was a normal British salary(should be around 40%)? 

Is the self-employed way a viable way to pay less tax or it just complicates things?


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## Joppa (Sep 7, 2009)

That depends on whether they deduct Dutch tax before paying you. 

Whether you pay less tax as self-employed contractor depends on individual circumstances.

Speak to an experienced accountant. Don't try to do it yourself.


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