Also in the news...
Foreign Office travel advice updates
Latest travel information for British nationals affected by the situation in the Middle East.
Check if you need a UK visa
You may need a visa to come to the UK to visit, study or work.
Apply to use simplified declarations for imports you entered in your records without authorisation
Choose how you’ll make supplementary declarations for goods that you entered into your own records without authorisation.
UKEF backs Leicester sustainable packaging firm in Australian expansion
UK Export Finance announces support for a UK luxury sustainable packaging company to expand into new foreign markets.
Hundreds of new UK jobs as Nigerian companies confirm millions in investment
Hundreds of new UK jobs are set to be created as Nigerian companies scale up their operations, reinforcing Britain's position as a leading global business hub.
30% ruling from 8 to 5 years as per 1 January 2019
The maximum amount of years the 30% ruling may apply has been reduced from 8 to 5 years as per 1 January 2019. The 30% ruling is essentially a tax credit for expats working in the Netherlands to compensate for the additional costs expats usually make for working away from their home country. By applying the 30% ruling the employer can pay out 30% of the salary tax free. Therefore, the reduction can result in significantly lower net wages for expats with the 30% ruling.
The reduction applies to current and new 30% rulings. However, for current rulings, i.e. rulings granted before 1 January 2019, there is transitional law for a period of 2 years. The transitional law results in the following for rulings granted before 1 January 2019:
|
End date on ruling in year: |
New end date of ruling |
|
2019 or 2020 |
End date as stated on ruling (no changes) |
|
2021, 2022 or 2023 |
31 December 2020 |
|
2024 or later |
End date as stated on ruling minus 3 years |
Practical implications:
- Employers need to check whether they should stop applying the 30% ruling sooner than expected for their employees and adjust wage tax withholdings/payments accordingly;
- Employees need to check if their 30% ruling will have a new end date and act accordingly to prevent unpleasant financial surprises;
Should you need any assistance, please contact us