Hi,
New to the forum, I moved to the Netherlands in March 2019 when I got a job there, and have primarily lived there since. I am a UK citizen.
I appreicate there a lot of info in this topic, it to initially get an idea of what I need to consider, and I'll get in touch with a tax professional if the circumstances are not straightforward.
My employer is based in NL, and tax is withheld via payroll, so I pay all my tax in NL, none in the UK.
This year, once lockdown had started in March, I began working from home full time in NL, however in May I ended up coming back to the UK as my mother became extremely ill. Since then, I have mostly been in the UK, but did go back to NL for some weeks, and will do so again in the coming weeks.
The questions I have are around the number of days I can stay in the UK, as I want to be around here as much as possible given my mothers condition.
Some of the rules around the statutory residence test (SRT) on the UK gov website, and the whole double taxation agreement that the UK and NL have, have left me confused about the number of days I can spend in the UK, is it 90, or 120, or 183, or even something else.
On top of that, NL works based on the calendar year, while the UK works on April to April. So far in 2020 I have spent around 80 days in the UK, and around 70 days since beginning of April
If I just use the SRT, I believe I can spend max 90 days in the UK under the 'sufficient ties test'. Since I have my mums home here, and have worked for more than 40 days in the UK.
One the other hand, if I am understanding the double taxation agreement correctly, as long as I spend over half the year in NL, then I will only be taxed in NL and can happily be in the UK for up to around 180 days (adjusted for the whole fiscal year differences).
So, my question is: Which of the above rules would I fall under? Does the double taxation agreement and its 183 days override the statutory residence test and its 90 days? Is the SRT even relevant?
Is there anything else I've missed? I tried looking for the NL government website version of the double taxation agreement, but its in Dutch (which I'm unable to understand), and the pdf was not google translate friendly.
I'm, happy to post links to the relevant gov websites I've used.
Appreciate any comments, even if its 'this is too complex to answer here, speak to a professional accountant'.
Thanks,
Gorb
UK - NL double tax agreement and the UK statutory residence test (SRT)
Hi and welcome to the Forum.
In general, where you are regarded as being tax resident is where you live for the majority of the tax year; yes, there is a double-taxation agreement between UK/NL which basically says you won't be taxed twice on the same money, so as long as you're paying tax to one of them, the other won't lock you up (not until you've had a chance to put right anything you've done wrong anyway - joke). You are also correct that the UK and NL tax years are out of sync with each other. My experience is that neither party are interested in the foibles of the other and will tax you regardless.
I think it's far simpler than you are expecting. If you have maintained your residence in the Netherlands, remained registered with the Gemeente, have continued to pay the income, social taxes and health insurance on your income in the Netherlands, then you will still be regarded as being permanently resident there.
Unless you have a lot of money to worry about, I wouldn't bother wasting any money with tax-advisors, just give the Belastingdienst a call on 0800 0543 and make an appointment to go and see your local office and get the answer from the guy that is going to make the decision. When I did it, I also used a tax advisor, but he said the exact same thing from the exact same rule book as the lady at the Belastingdienst office in Enschede told me.
Hope this helps.
Cynic
Expat Team
Cynic - thank you so much for the speedy and clear response!
Indeed my work, pay and tax is all NL based. I even bought an apartment earlier this year (great timing hey!) so my intention is to be in NL for a few years.
So, the presumption for my circumstance is that for both the UK fiscal year, and the NL fiscal year, I should be in Netherlands for at least 183 of those days.
I shall call the Belastingdienst as you have suggested and arrange an appointment to be absolutely sure, I was going to call HMRC but I guess this is a question more for the NL side. I'll be over 90 days within about 10 days so I guess I should probably arrange to go back soon just in case.
Thanks again for your comments, much appreciated.
Thanks,
Gorb
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