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  • Tax on Travel Costs when commuting abroad long term?
  • thegeneralist
    Free Member

    Been for an interview for a job that would be based in Netherlands 3 days a week (home for the other 2).

    Looking on various gov.uk websites, it’s quite clear that if the job were based in London (for example) then I would have to pay tax on any expenses that the company paid me to get to London each week.*

    However I can’t find any info on whether that applies to jobs based abroad or not.

    Anyone in this situation? (or better with Google than me)

    * Yes really

    Selled
    Free Member

    You need a tax advisor.

    I guess this is the least of the concerns because if you are in the Netherlands 3 days a week then your working mostly in the Netherlands and should be paying income tax there.

    I was surprised, a tax guy that understands this is quite reasonable and should be able to advise on how to best write the contract etc.

    Good luck.

    thegeneralist
    Free Member

    Hi,
    anyone else able to answer the question on whether you need to pay tax on expenses to travel to your normal place of work if it is abroad?

    trail_rat
    Free Member

    My normal place of work is Angola

    I don’t pay tax on the cost of getting there. It is not a taxable perk even if covered by the company.

    May be treated differently if you are paid to be there as part of your package and your arranging and paying for the travel rather than then booking or paying for it on expenses.

    antigee
    Full Member

    think you’ve answered your own question – key phrase is normal place of work
    did 4 days a month for a couple of years in Netherlands but was UK based employer with UK co contract and NL co paid UK co for my services so not my normal place of work

    tax advisor is the only way to go unless you hit lucky on here, can’t be an unusual question – might be being self employed/contractor (arghh! complex) may be more tax effective and NL tax will need sorting somehow

    HoratioHufnagel
    Free Member

    Unless you are a contractor, or unless working in the Netherlands 3 days a week is a temporary arrangement, I don’t see how you can avoid paying tax on the “expenses” (which is really just extra salary) they give you. It’s effectively a tax break for commuting, which isn’t allowed. (I’m no accountant).

    geoffj
    Full Member

    The length of the time in NL as a proportion of contract length may also be important re normal place of work – tax advisor required though.

    stevextc
    Free Member

    You will (probably) have a normal place of work for Dutch Tax and another for UK Tax…

    You shouldn’t be paying the flights but your public transport etc. once in country at a hotel/residence will be subject to Dutch Tax…. (At least it works like this for my Danish Tax)

    My weekly flights are about £500 but local travel is about £3 a day…. I claim the £3 airport to work or airport to hotel as tax refundable expenses….but the local travel as non tax refundable expenses which I get back because the client pays but then is processed in my Danish Tax submission (which luckily my company do)).

    trail_rat
    Free Member

    Unless you never physically see the cash and your flights are booked direct by the company.

    Bit like when all the companies round here used to put on staff buses from the town to save on parking at the office

    nealglover
    Free Member

    If it is your normal place of work, and it is classed as commuting, then anything extra your employer gives you to cover the costs will be taxed as income.

    If it is classed as business travel, and your employer pays (only) for the costs incurred, then it is not taxable as income.

    This is based on you being paid, and paying tax, in the UK.

    stealthcat
    Full Member

    This is what I do for my day job – do you want to drop me a pm?

    Though the main thing I would say is that getting an accountant is the best place to start…

    Potentially, this is complicated and probably expensive if your employer gets it wrong.

    antigee
    Full Member

    ^^^ hope it goes well – on the home days you’ll get early am phone calls but early finish for getting out in the evening ;(

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