Steve_

Basically the same as described in post #48 above, but you may have to invoice in Sterling which is even more of a pain than USD because no Canadian bank offers Sterling accounts, so you have to use a UK bank that won't understand all the Canadian business paperwork you've got.

On the other hand there's no IRS paperwork obviously.

What I always do is invoice in CAD or USD, if they don't want to do it that way offer some sort of incentive so they'll do it.

There's no VAT so it's usually pretty simple to convince them.

Aviator

HSBC have a GBP account.

Siouxie

I invoice in sterling (0 rated GST/HST), the company pays me through a 3rd party (in sterling) directly to my Canadian RBC account, where it's converted into Canadian dollars. I am charged by RBC ($17 - tax deductible) for the wire transfer but the exchange rate seems to be very reasonable.

I'm pretty sure that the company being invoiced could do a direct transfer (wire) without going through a 3rd party; the company I do work for have many freelance workers worldwide and find it easier to use a 3rd party.

R I C H

With our move back to the UK planned for the new year, I visited the local HSBC to enquire about that account. I was told I needed to be an HSBC customer for 90 days before I'd qualify for it, then there'd be a $250 fee to set the account up.

Aviator

We just went in and set one up, no charge and it is the only account we have at HSBC. This was a few years back, so maybe has changed.

BritCanadaNewbie

Surely you can just invoice from your regular sterling accounts ? You just can say you company/corporation name on the invoice you send your vendor (pimp )

Aviator

Clarifying terminology: By a 'sterling account' I assume you refer to a GL account? You invoice in a currency and link that to the GL revenue account, such as GBP, USD etc. You are the vendor, they are the customer, to whom you send the invoice.

Your invoice can be setup however you and the customer agree, in any currency you agree to. Provided the customer is exempt sales tax, the sales tax code would be set to zero. Be sure your customer is exempt (usually overseas are), otherwise you ar eon the hook for the sales tax.

We invoice in the customers local currency, unless agreed otherwise with the them. When we invoice in local currency, we buffer to account for the variable FX. Some customers prefer we invoice in our local currency and they take the FX risk. US customers prefer paying a landed price in USD.

We do whatever the customer wants us to do (other than give discounts).

Steve_

When I enquired about it, it wouldn't work for some reason, I can't remember, I think they either wanted a silly minimum amount or it didn't work with BACS or something. It was a long time ago though.

Steve_

I'm sure you could, but it's not a good business practice to mix your personal and business accounts, it can lead to all sorts of complications, what with all the anti-money laundering regulations the UK has now. If you dump it into a personal account it could be argued that was personal income as well, and under the new OECD rules the bank in the UK has to get your SIN, so that information could go to the CRA.

I wouldn't recommend it.

Steve_

Let me just add that one of the reasons I do it this way is so that I'm insulated against the exchange rate, Sterling plummeted in 2008 and again in 2016 so I'd rather they have the insomnia instead of me. Plus it makes the tax paperwork easier obviously.

The whole "my VAT is zero-rated" is bullshit anyway because if it's a business they can claim back the VAT, it just sounds good as a marketing technique.

BritCanadaNewbie

So your/the Canadian based HSBC GBP account needs to be a business account ( with your incorporation name)?

Steve_

Yep. I think Siouxie's way of doing it is probably the best alternative if you have to do it in Sterling.

BritCanadaNewbie

Thanks again for quick replies folks

Aviator

If you operate as a corporation, sending an invoice as a corporation and depositing the payment into a personal account could causes complications, it could be deemed personal income and not corporate. As the cheque would be made out to a corporation, a bank won't take the deposit into an account in a personal name unless the back of the cheque is endorsed. Depositing into a personal account could also break the limited liability boundary if that is an issue.

In Canada we can deposit GBP cheques into any Canadian bank so why complicate the issue?

Aviator

A long time ago we opened the account, no idea how it works now, but we can still use it. Getting the money out is as simple as a transfer to my FX broker.