Hey, heb dit van mijn UK belastingadviseur gekregen met toestemming om het hier te publiceren.
NetherlandsTreaty from 6/4/11 - Revised UK Tax Codes for some!
(What follows is a general UK tax overview, by DJS Consulting - Personal UK Tax specialists for Aircrew - that should not be acted upon without first contacting us to verify the exact application for you in conjunction with your own individual circumstances.)
In short - no change is anticipated for those employees who remain Resident and Ordinarily Resident for UK tax purposes under normal UK domestic rules and indeed “treaty resident” here as well, under the tie breaker rules – by maintaining a closer connection with UK etc.
On the other hand - Dual Tax Residents - who prove “treaty residence” in the Netherlands and pay full Netherlands salary tax should then, by virtue of the specific interaction of the relevant new treaty articles – be able to look towards a UK No Tax code to be applied against treaty exempted employment income (ie excluding that attributable to any ongoing wholly UK duties- ie UK training and internal flights).
UK No Tax codes are applied on an estimated basis and if applicable, only represent the start of the process. Previously they have more typically been reserved for Non Resident employees with wholly overseas duties of employment (ie no UK working flights).
Indeed UK Non Residents will continue to face the consideration of a UK liability in respect of remuneration attributable to any ongoing wholly UK duties- (ie UK internal flights, Simulator Training, Hotel Standby etc) and this will then strictly prevent the application of a No Tax code. In the past such employees might have secured sc690 / 203 codes to tax an estimated percentage of remuneration via the UK payroll and may still prefer to do so pending agreement of the overall UK tax outcome. Either way this will continue to be dealt with via annual Self Assessment review and tax returns based upon achieved rosters and the full facts of each individual case – with UK tax refunds if appropriate. Penalties and Interest can apply in respect of any tax liabilities paid late after relevant due dates.
Of course you will also need to take further local advice and file within your host country (Netherlands) as appropriate. We can certainly assist you with a Free Initial Consultation and then optimise your UK tax position by covering the initial coding application and indeed any relevant Self Assessment tax return to uphold matters. *
Contact;- David J Sawyer FFTA Partner
DJS Consulting
Taxation Consultants
11 Chesswood Avenue, Felpham, West Sussex, P022 6AX. United Kingdom
Email
consultdsawyer@aol.com
web site
www.aircrewtaxreturn.co.uk Mobile Office UK (0) 781-3963028 Office UK (0) 1243-586448
References:-
1. Treaty entered into force on 25/12/10 and is applicable for UK Income tax from 6/4/11 and from 1/1/11 in Netherlands
http://www.hmrc.gov.uk/international/2008-netherlands-uk-dtc.pdf
2. Employment Income Art 14.
3. Aircrew operating in International traffic - (Art 3(1)(h) , by a resident of a Contracting State (ie Netherlands) shall be taxable only in that state (Netherlands) - (Art 14.3).
4. Dual Resident - tie breaker provisions for “treaty residence” - Art 4(3)(a)(b)(c)(d) – (n.b can ensure Art 14(1)(2) and Art 14.(3) applied favourably.
5. Elimination of double taxation in UK– Art 21(5)(a)(b) – (n.b typically in UK by credit of Netherland Tax.)
6. Elimination of double taxation in Netherlands– Art 21(1)-(4)( (n.b by credit of UK Tax.)
