Working in the UK for a Dutch employer: the dream that really can happen
Imagine this: you start your working day from London, Manchester, Edinburgh, or a quiet place outside the city. You still work for your Dutch employer, but your daily life takes place in the UK. For many people, that sounds like a dream. And in some situations, that dream can become reality, as long as it is arranged properly.
Working from the UK: why so many employees dream of it
The UK attracts many employees. Think of London, Manchester, Edinburgh and Bristol, the rich culture, international business environment and the English language. For many, it is an ideal place to:
• start an international life phase
• live closer to family or a partner
• experience a new environment without giving up their Dutch job
Can you work in the UK for a Dutch employer?
Yes, this is possible, but it is rarely as simple as just taking your laptop with you. Structurally working from the UK depends on:
• your immigration status
• the duration of your stay
• where you physically perform your work
• whether your employer is willing to take the necessary steps
The situation must be set up compliantly with UK regulations, for both you and your employer.
Temporary remote work or structurally living in the UK
There is an important difference between occasionally working from the UK for a week and moving there permanently. Temporary remote work often falls under different rules than when your main place of living and working shifts to the United Kingdom. As soon as you permanently live and work in the UK, tax, social security, employment law and possibly immigration play a bigger role.
What has changed since Brexit?
Since 1 January 2021, the UK is no longer an EU member state. As a result, freedom of movement of people no longer applies as it did before. Dutch citizens can therefore no longer automatically live and work in the UK. For living in the UK and working for a Dutch company, extra steps are needed, especially around right to work and visa requirements.
What do you need to take into account as an employee?
If you want to work from the UK, you want certainty about your income, correct payment of taxes and social security contributions, and protection under local employment law. The key points to consider are:
a. Right to work and visas
Right to work in the UK is essential. For Dutch citizens who moved to the UK after 1 January 2021, a visa is usually required. Think of the Skilled Worker visa, depending on skills, salary and sponsorship by a licensed employer. Your employer must legally check whether you are allowed to work in the UK.
b. Tax and UK tax residence
As soon as your primary place of residence moves to the UK, you will probably become a UK tax resident. This means that you may become liable to tax in the UK on your worldwide income. The UK determines tax residence through the UK Statutory Residence Test. This looks, among other things, at:
• the number of days you stay in the UK
• your ties to the country
• other personal and professional circumstances
The 183-day rule is therefore only one part of this.
c. National Insurance
National Insurance in the UK consists of mandatory social security contributions, comparable to Dutch social security contributions. They contribute to rights such as state pension, sickness benefits and maternity benefits. Whether you need to pay National Insurance depends on your employment status and residence. Sometimes Dutch social security can temporarily continue to apply in the case of a temporary assignment, but for structural relocations after Brexit this is more likely to be an exception.
d. Employment law and local protection
If you structurally work from the UK, UK employment law will probably apply to your situation. Think of rules around working hours, holidays, sick leave and dismissal protection. These can differ from Dutch law. It is important to know which law applies to you.
e. Payroll and salary payment
If UK law applies, your employer often needs to set up a UK payroll. Wage tax through UK PAYE and National Insurance must be correctly paid to HMRC to prevent fines and compliance problems.
What does this mean for your Dutch employer?
Your wish to work remotely from the UK also has consequences for your Dutch employer. An employer cannot simply allow this without assessing the legal, tax and administrative consequences.
Non-compliance can lead to:
• fines
• reputational damage
• an unintended permanent establishment in the UK
In the latter case, the Dutch company may become liable to tax on profits in the UK.
Why your Dutch contract is not always enough
A Dutch employment contract is drawn up under Dutch law and for work performed in the Netherlands. As soon as you permanently live and work in the UK, a UK employment contract may be needed, or the Dutch contract may need to be adjusted to UK employment law. A Dutch contract does not always provide the right protection or compliance in that situation.
Employer of Record UK: how the dream can become practical
For many Dutch employers, setting up their own entity in the UK for one employee is too big a step. An Employer of Record in the UK can then help. An EOR UK, such as Parakar, acts as the legal employer in the UK and takes on local compliance, payroll, taxes and social security contributions. You continue to work for your Dutch employer on a daily basis, but legally you are employed by the EOR. This allows your employer to employ you in the UK without setting up its own legal entity.
How do you discuss working from the UK with your employer?
Open communication is essential. Explain why you want to work from the UK and show that you understand the complexity. Mention that solutions exist, such as working with a specialist partner that understands local UK regulations. Parakar helps employees and employers analyse the situation and set it up compliantly.
Common misconceptions about working from the UK
• “I’m just working remotely, right?”
The location changes, but legal and tax obligations change with it.
• “I will still be employed by my Dutch employer, right?”
Legally, a local employer, such as an EOR, may be needed.
• “The UK is nearby, so it will probably be easy.”
Since Brexit, stricter immigration and employment rules apply.
• “I speak English, so I can just work there.”
Language helps, but it does not replace legal requirements.
• “If I stay under 183 days, nothing is wrong.”
The UK Statutory Residence Test looks at more factors than days alone.
Parakar helps employers and employees arrange this compliantly
At Parakar, we understand the desire to work internationally and the challenges this creates for both employee and employer. Whether it concerns an Employer of Record in the UK, interim HR services, payroll or local legislation, we take away the administrative and legal complexity. This allows you to focus on your work and your life in the UK, while your employer is assured of compliance.
Do you dream of working from the UK for your Dutch employer? Or is your organisation receiving this question from an employee? Contact Parakar. Our local experts help you discover what is possible and how to arrange this compliantly.
