B2B between UK Ltd Co. to Dutch sole trader Co.

If you are owner/director of both is this permitted?

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Personal Income tax in the Netherlands is excessive (starts at 39 and goes to 52%). An allowance for sole traders (or ZZP companies) in the Netherlands allows certain tax incentives (without which many small sole traders in NL would not be able to survive). Unfortunately, these are designed for local Dutch contractors and are not limited liability entities. My Industry operates overseas in regions where it is not possible to get indemnity/liability cover. Without limited liability or insurance cover there is too much risk

In order to get proper cover and maintain the tax incentives  I wish to collect client payments to the UK Ltd company of which I am a director and pay my Dutch sole trader company on contract and invoice basis (or B2B). 

Is this allowed? And if not, what options might make it possible ? For example : Use a third party company as an intermediary between the UK Ltd and NL sole trader Co. 

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By Wanderer
30th Aug 2018 11:27

What does your accountant say?

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By chopkins
30th Aug 2018 12:33

Accountant says probably not, but could not really advise if this was cast in stone and/or if there was another (legal) way of doing this. Hence casting my net a little wider

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