Freelance work in another country while living in NL

Hello,


During COVID, I earned a living from freelance work in Wales. I paid UK taxes on it and everything there was above board. However, I never filed any Dutch tax paperwork on these earnings. Now I need to get my ducks in a row and I'm wondering...what's the best way to handle this and keep pain and suffering to a minimum? Will they want copies of my HSMRC tax returns for those years? I know I made a mistake, but it was a difficult time...any help is much appreciated.

Hi and welcome to the Forum.


I'm assuming you've been resident in the Netherlands during the time you refer to.  Where you are assessed for taxes is wholly dependent on where you were deemed as being "resident" in the previous tax year; the Dutch have 2 payroll taxes directly assessed on your worldwide income; the first tax is basic income tax, and the second is social taxes.  There is a tax treaty in place between the UK and NL that would almost certainly protect you from paying income taxes twice on the same income, you can read them on the UK Gov website; this link will take you straight to them.  These treaties however do not apply to social taxes and you will be assessed on your worldwide income for these and you will get a bill for these, when this happened to me I ended up with a substantial bill from the Belastingdienst.


My advice is to speak to a Dutch tax expert and explain your situation; he can then assess your situation and advise you on any tax reliefs you can claim to help offset the bill that is coming.  How to find a tax expert - top of this page is a link to our Services section where such people advertise their services.


I hope this helps.


Cynic

Expat Team

@Cynic what rate are the social taxes charged in the NL?


    @Cynic what rate are the social taxes charged in the NL?
   

    -@lukecm24


A quick check online tells me it's currently 27.65% of your gross salaries; there is a ceiling as to how much you have to pay, so my advice remains to speak to a Dutch tax expert to get the current details.