lorilai18

Hello!

Before you read on, I would like to inform you that I am writing this thread for advice on the Netherlands tax system, any information or experience/tips would be appreciated!

I am a 21 year old British female who, upon graduation of my masters in September, will be moving to the Netherlands to live with my partner. I have never worked full-time before, so I have extremely minimal knowledge about the tax system in the UK, nevermind abroad...

I am hoping to boost my career in freelance writing upon moving, and currently work for a couple of people over here in the UK. I have received a substantial number of offers to work on a full-time formal basis when I graduate, and I'm hoping to take them up on the offer despite the fact that I will be living abroad, as all work can be completed remotely.

My only issue is that of the Dutch tax system, and how (if it's even possible, or worth it) I would go about living in the Netherlands, yet working for UK clients and earning pounds sterling by doing so. Could anyone help me with this? As I said before, any information at all would be helpful, as Google is returning little answers for me at the moment.

Thanks!

Lori

Red_Wine_Fairy

You'd need to set up as a freelancer, no doubt. The Chamber of Commerce (Kamer van Koophandel) has information in English.

English

Fugee

Apart from the fact that you will be invoicing in pounds sterling, it all seems pretty straightforward to me for now. But that said, I’m no tax expert.

You set up a company, get a VAT number, inform the tax office of your expected earnings for the tax year, make monthly payments to settle your tax bill and other financial contributions, and invoice your clients. At the end of the tax year, you do your calculations – of have an accountant do them for you – and submit them to the tax office, after which you pay or receive the difference.

Since you’ll be invoicing abroad, I think you charge VAT at 0%. This will probably have consequences for VAT deductions you can make on any purchases you make here.

But I don’t know what difference invoicing in sterling makes, since the exchange rate is never the same. Any decent accountant should know this (and much more than you could probably think of asking), or at least know where to immediately find the relevant information.

My suggestion to you would be to contact an accountant near to where you are planning to live. They vary from large firms to people who work out of their home. Someone working from home should be sufficient for a company the size you will have. It will probably cost you money, but it’s deductible from your earnings.

I hope that helped a bit (but don't forget, I'm no tax expert).

Good luck

calman014

It's not that complex really. Your clients can be anywhere on the planet. You set up as a "ZZP" Self employed with no personnel. Info available as mentioned above at the Chamber of Commerce (Kamer van Koophandel). You will get a VAT Number and a KvK Number to allow you to trade officially.

There are plenty of smaller local certified "administratiekantoren" or admin. offices who will look after your quarterly tax returns and income tax returns for a reasonable fee. You don't need a big expensive accountants office.

As long as you have some income to support you while you setup it's probably the best way to start.

Its very important that you have multiple clients, even small local copywriting jobs for example.

If you complete large expensive tasks repeatedly for 1 client, they will be treated as your employer by the Dutch tax authorities and be liable for regular social premiums of an employer.

If you are full time employed on a standard basis by a UK company, then it means UK taxes and much extra paperwork. Try to avoid that and you'll have much more time for your writing. Good luck.

Cynic

Hi Lori - I did it for 2 years; as you're resident in Holland, you'll be taxed there. You should be aware that the Dutch have additional "social taxes" that you'll have to pay and they will go back over your income for the current tax year when assessing these; there is a double-taxation agreement in place between UK and NL, so you won't pay tax twice - just be aware that the agreement only applies to income-tax, not the social taxes - I got a bill! The advice you got above regarding setting up a business is relevant. To make sure I got it right, I got myself a local tax-advisor where I lived (Enschede) to help me with my annual tax return; perhaps somebody here has recent experience of using one and can recommend.