Question about starting a BV to work for a UK company

[Nils Schuler]

Hi,

I am going to start working as a consultant for a UK based recruitment company in the coming weeks, and to be able to work for them, they suggested that I set up a BV. After speaking to a Dutch friend about it, he suggested that I should set up an eenmanszaak instead of a BV, as especially in my earning bracket, it is a smarter financial decision. I have no expenses or possible debts, so am not worried about the liability in that sense. I just do not know whether that will allow me to perform work for a foreign company in the same way as a BV would. Does anyone have any advice or experience on this matter? Do I need a BV, or will I be able to do everything I need with an eenmanszaak instead?

 

I will try and respond to any questions as quickly as possible, and thanks in advance for your help.

[Hans van den Bergh]

Welcome to HL

 

Maybe you could start HERE for tips and further information. You are providing a concultancy-service from the Netherlands to an UK-company, but, is that you only client or will you acquire other clients as wel? If not, then you could (should?) better be working as their employee...

[Nils Schuler]

35 minutes ago, Hans van den Bergh said:

Welcome to HL

 

Maybe you could start HERE for tips and further information. You are providing a concultancy-service from the Netherlands to an UK-company, but, is that you only client or will you acquire other clients as wel? If not, then you could (should?) better be working as their employee...

Hey, thanks for the reply. They would initially be the only company I work with, and it is a fixed employment contract, but all their EU-based employees are registered as contractors, to my understanding, through the BV's they set-up.

 

Long term, there is a high likelihood of my involvement with a Dubai-based start-up as well, who would also become clients at that point, but that could be 6-12 months away.

[Hans van den Bergh]

3 minuten geleden, Nils Schuler zei:

it is a fixed employment contract

 

Then you are an employee, not self-employed, I would say...

 

Working through a BV as a contractor is quite a difference, legally.

[Nils Schuler]

2 minutes ago, Hans van den Bergh said:

 

Then you are an employee, not self-employed, I would say...

 

Working through a BV as a contractor is quite a difference, legally.

Well, the contract will technically not be with me, but with the BV that I am to set-up, and is a fixed contract with that BV. Sorry that I didn't explain that beforehand. Because of that relationship (the contract being with the company and not me personally), I am unsure if an eenmanszaak would be viable.

[Joost Rietveld]

As far as an eenmanszaak goes, this is indeed bordering on employment. Dutch labour law is quite inflexible about this. Presenting yourself as an eenmanszaak requires you to have multiple clients or at least aim for it. Also, further hallmarks of being a company such as a website, advertising, linkedin profile, etc. are helpful. And last but not least you need to run the risk of defaulting debtors (which is kinda unlikely with just 1 client).  

 

Do note that you have the option to pay your taxes on these earning as income derived from foreign employment (that is a thing in your Dutch tax return). This however deletes the possibility to deduct expenses. Your client should compensate  you for this.

 

A BV does help a little, since there are no required hallmarks to come across as a business. However, a BV doesn’t help against the Dutch Tax Services marking you as an employee of a foreign employer. So sadly, not an ideal situation you find yourself in.

 

I think that as long as you don’t present yourself as a company and claim business tax benefits, you’ll be fine.

[Nils Schuler]

7 minutes ago, Joost Rietveld said:

As far as an eenmanszaak goes, this is indeed bordering on employment. Dutch labour law is quite inflexible about this. Presenting yourself as an eenmanszaak requires you to have multiple clients or at least aim for it. Also, further hallmarks of being a company such as a website, advertising, linkedin profile, etc. are helpful. And last but not least you need to run the risk of defaulting debtors (which is kinda unlikely with just 1 client).  

 

Do note that you have the option to pay your taxes on these earning as income derived from foreign employment (that is a thing in your Dutch tax return). This however deletes the possibility to deduct expenses. Your client should compensate  you for this.

 

A BV does help a little, since there are no required hallmarks to come across as a business. However, a BV doesn’t help against the Dutch Tax Services marking you as an employee of a foreign employer. So sadly, not an ideal situation you find yourself in.

 

I think that as long as you don’t present yourself as a company and claim business tax benefits, you’ll be fine.

Thank you for the response and explanation. I will do some more digging to see how I proceed, but this was very helpful.

[Joost Rietveld]

you're welcome!