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Posted Mon, 12 Aug 2024 15:27:23 GMT by Dutchguy
I receive a small early retirement pension from the Netherlands. I live in the UK all year round for several years now. It's below 25k euro so it's taxed in the UK. I can add another early Dutch pension that could bring me above the 25k threshold and later on the Dutch state pension. For convenience I'd rather pay income tax just to HMRC but the treaty says all above 25k is taxable in the Netherlands. How to prevent double taxation in the UK? Do I have to exempt the income or deduct tax paid in the Netherlands?
Posted Wed, 14 Aug 2024 09:31:21 GMT by Uktaxpayer
I am also receiving a pension from The Netherlands, and it is over £25k. I have requested the Belastingdienst to receive the money tax-free into my UK bank account, and I pay the tax in the UK using self-assessment. No issues, except that you have to repeat the request every 5 years.
Posted Wed, 14 Aug 2024 14:45:49 GMT by Dutchguy
I also have de so called " vrijstelling " but I was a bit confused by the 25k threshold. Reading more & more although not easy to find, I get the impression the 25k is in there as a " no fuss clause " but for higher amounts the treaty wants a guarantee that I pay income tax in either the Netherlands or UK as long as the UK has a policy of taxing people like in the Netherlands. That's the case in the UK: pensions are not exempt from taxation so applying for my second pension, ask " vrijstelling " again and pay UK tax should go smoothly. I hope the same rules apply to state pension (AOW) I assume you're born in the Netherlands and have a Dutch passport too...... Oh and thanks for your reply.
Posted Thu, 15 Aug 2024 15:35:46 GMT by Uktaxpayer
I never heard of this 25k threshold. I'm Dutch and have lived in the UK for the last 33 years. When applying for the 'vrijstelling' you have to prove that you pay the tax in the UK over your Dutch income. This involves copying your UK tax return and sending it off to the Belastingdienst. A bit tedious, because they want a hardcopy - rather silly because the hardcopy is just a printout of the digital HMRC file that I made in my local library. They ought to join the 21st century and let us email the actual file to them. The last time I did this (earlier this year) they gave me the 'vrijstelling' for both my Dutch workplace pension and my AOW in one go, so at least that is working as it should. I also got it back in just a week or two. Compare that to HMRC's response to a written question - I'm still waiting 6 months later. Nobody has ever bothered me about my total Dutch pension being above 25k (Euros and Sterling). Why did you investigate this?
Posted Thu, 15 Aug 2024 15:42:05 GMT by Uktaxpayer
Sorry, forgot to add that I was born in The Netherlands, am a Dutch citizen and have a Dutch passport. Until the Dutch government gets a bit less uptight about dual nationality (The Netherlands are one of the few countries in the world that don't allow this) I won't apply for British citizenship, because I don't want to lose my EU citizenship. I guess with the Government they currently have there this is not likely to happen any time soon, unfortunately.
Posted Thu, 22 Aug 2024 16:36:15 GMT by HMRC Admin 25
Hi Dutchguy,
If declaring the income in the UK, you can apply for a certificate of resdience to give to the Dutch authorites so they do not tax it.
Please see:
How to apply for a certificate of residence to claim tax relief abroad
Thank you. 

 

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