Moving abroad and not sure where I stand regarding tax
In August 2019 I quit my job and became a freelancer (Graphic Design and Illustration) and it's been going great. In the next couple of months I'm moving to the Netherlands (from England) and I don't know what steps I need to take regarding moving my practice with me. I want to make sure that I do everything legally and I'm worried I'll overlook something that'll end up costing me a fine somewhere down the road.
I want to keep working with my UK clients and, obviously, market for new ones once I get there, but I'm not sure where I stand regarding tax. I've tried to research online and I think I'm liable to pay tax in both the UK and to the Dutch government?
Lastly, is there anything I should know and haven't mentioned about freelancing in foreign countries; is there a way to expand my services to take clients from other countries in Europe under a blanket practice, or would I have to set up routes for business for each country I traded to?
If anyone has been through something similar, or has advice about where I should start, I'd really appreciate it. Thanks in advance!
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Laura@FreelanceUK
Messages count : 26Likes count : 6Registration : 3 June 2014Hello Jess,
We have asked an expert to answer your questions and here is what they had to say:
https://www.free-work.com/en-gb/tech-it/blog/guide-to-freelancing/how-to-tax-efficiently-retain-work-and-win-new-clients-if-i-move-abroad - Contact in PM
bidgetkloke
Messages count : 1Likes count : 0Registration : 29 August 2022First of all, you have to figure out what field you want to work in. Graphic design is an extensive topic. I also started working for myself last year. - Contact in PM
richardchapman
Messages count : 2Likes count : 0Registration : 16 January 2023I totally understand your concerns about tax liability. Generally, if you're a UK tax resident, you'll be liable for UK tax on your worldwide income. When you move to the Netherlands, you might become a tax resident there, too, which could result in dual taxation. However, the UK and the Netherlands have a double taxation agreement to prevent double taxation, so that's a relief.
Regarding freelancing in multiple European countries, you typically need to consider the tax and legal regulations in each country you work with. It's often necessary to set up specific arrangements for each one.
As for your move, have you considered checking out the Three Movers average cost? They might have some helpful tips for relocating your practice smoothly. - Contact in PM
Free-Worker-807577
Messages count : 1Likes count : 0Registration : 17 March 2024Moving your freelance practice from the UK to the Netherlands involves several important considerations, especially regarding taxation and legal requirements. Here are some steps and factors you should consider:
Tax Obligations:
UK Tax: As a freelancer, you'll need to inform HM Revenue & Customs (HMRC) about your change in circumstances. Depending on your UK income sources, you may still be liable for UK taxes on any income earned from UK clients. You should check the UK tax residency rules to determine if you'll be considered a UK tax resident after moving to the Netherlands.
Netherlands Tax: In the Netherlands, you'll need to register with the Dutch tax authorities (Belastingdienst) and obtain a Citizen Service Number (BSN). You'll be subject to Dutch taxation on any income earned while residing in the Netherlands, including income earned from UK clients. The Netherlands has a tax treaty with the UK to prevent double taxation, so you may be able to claim tax relief in one country for taxes paid in the other.
Legal Considerations:
Business Registration: You may need to register your freelance business with the Dutch Chamber of Commerce (Kamer van Koophandel, or KvK) once you've settled in the Netherlands.
Visa and Residence Permit: If you're not an EU/EEA citizen, you may need to apply for a visa and/or residence permit to live and work in the Netherlands. Make sure to check the immigration requirements that apply to your specific situation.
Expanding Services to Other European Countries:
EU/EEA Clients: As an EU/EEA citizen, you have the right to provide services across EU/EEA countries without needing to set up separate legal entities in each country. However, you may still need to comply with local tax and regulatory requirements in each country where you have clients.
VAT Registration: Depending on your annual turnover and the nature of your services, you may need to register for VAT (Value Added Tax) in the Netherlands and/or other EU countries where you have significant business activities.
Seek Professional Advice: Given the complexity of international taxation and legal matters, it's advisable to seek advice from tax advisors, accountants, or legal experts who specialize in international freelancing or expatriate taxation. They can provide personalized guidance based on your specific circumstances and help you navigate the requirements of both the UK and Dutch tax authorities.
By addressing these considerations and seeking professional advice, you can ensure that you comply with all legal and tax obligations while transitioning your freelance practice to the Netherlands and potentially expanding your services across Europe.