Ok as the title says really, I am the director of my limited company (1 man band) and have been using this for the last 5 or so years on and off as required without problem, mainly for different jobs in the uk. However i have now started a new contract in holland, and was told from the agent i wont be liable for any dutch tax and NI, however i have my concerns having read different reports online, the job will be for less than 183 days, however dont know if this 183 day rule even applies? Any help would be greatly appreciated. thanks in advance Jonathan just to clarify i have not worked in holland before and i am residing in the uk
United Kingdom - 2 Answers
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1 :
The 183 rule only applies if you are not resident in the UK. Unless you will be out of the UK for a complete tax year (6 April to 5 April), with less than 60 days in the UK in between, then you will remain liable for UK tax and will not be liable to Dutch tax.
2 :
The 183 days rule is generally used to decide your residency position. However the mere intention to reside in Holland for longer periods is enough to make you or deem you resident for tax purposes in Holland. So if your contract is likely to exceed 183 days and you advise the Dutch authorities from day 1 that you intend to reside in Holland, for lets say 2 yrs, then you will be deemed,for tax purposes, resident in Holland. However you state that the contract is less than 183 days but if you already been there prior to commencing this new contract again you may be deemed liable for dutch tax. If you have not been there and work less than 183 days then UK tax is applied. Its not really a simple yes or no answer, several factors come into play including the mere intention to reside in Holland. Tac Doctor
