Brexit: British driver’s license & 30% ruling implications

One week ago, the EU27 approved a short extension of Brexit, providing the UK with some much needed additional time to come with a clear Brexit strategy. At this point, however, is still unclear how and when the UK will leave the EU. In this update, the focus is on some of the lesser known consequences of a no-deal brexit for (prospective) British employees in the Netherlands.

British driver’s license
After Brexit, British driver’s licences become subject to a different set of rules. Individuals with a British driver’s license who registered in the Netherlands as residents before the Brexit date get a 15 month transition period to exchange their current British license, whereas Post-Brexit arrivals may only drive up to 185 days with their British license before being obliged to exchange it. Driving with an invalid driver’s license may lead to insurance issues so we advise individuals as well as employers to get informed on the options available for exchange of the driver’s license. In case of a deal, different rules will apply.

30% ruling
Many Brits are securing their right of residence with a timely registration in the municipal records (BRP) even when the intended start of the local contract or assignment may be anytime after the Brexit date. Are you aware, however, that this registration may lead to an increased burden of proof for a.o. your 30%-ruling application? In order to avoid adverse financial consequences, ask your tax advisor to inform you on the specific situation of yourself or your staff.