ritchieee

Hi all, thanks for taking the time to look at my thread. I understand there are lots of very similar ones to this and all have had extensive replies, some contradicting other people's advice. Plus it seems my situation is a little different.

I am a director of my own limited company here in the UK, so technically I'm not self employed, rather, employed by my company. I have successfully applied for an IEC and have my Introduction letter (or whatever it's called).

I plan to rent a desk at co-working spaces firstly in Ontario, and then in BC. My work will all be coming in from the UK (the office will still run as normal). I doubt I'll earn any work in Canada through my company, though being in a co-work environment that may happen (and hopefully so).

That said, although my main reason for the IEC is to experience 'living' in Canada, I like the idea that I can seek employment should anything go wrong, or indeed just to take on some part time work to meet people.

My main question is, is what I'm hoping to achieve legal? And if so, what are the tax arrangements on me earning a wage in the UK, paid in to a UK bank account? Whether this makes any difference - a portion of my wage is dividend and therefore is paid post UK corporation tax.

I've read somewhere that you can't be self employed on an IEC, or some say you can be. As I say, technically I'm not self employed. Or would that be considered self employed? l I mean really, as long as I can support myself, I don't have to officially seek work do I?

Also, if I am offered to work on a project in Canada, as an employee of my own company, how would that work with tax?

Can I claim any costs such as renting a desk against my UK corporation tax bill?

Thanks very much

Former Lancastrian

No idea about the tax implications. On the IEC you get an open restricted work permit unless you have had a medical examination by a CIC Panel Physician allowing you to work with children or in a hospital or other jobs that place you in close contact with people, such as:
workers in the health sciences field
clinical laboratory workers
patient attendants in nursing and geriatric homes
medical students admitted to Canada to attend university
medical electives and physicians on short-term locums
teachers of primary or secondary schools, or other teachers of small children
domestics
workers who give in-home care to children, the elderly and the disabled
day nursery employees and
other similar jobs

Basically you try and find an employer (s) willing to hire you and pay you for the 12 month duration. Apart from the tax issue nothing you plan to do is illegal.

ritchieee

Hi Former Lancastrian, thanks very much for clarifying.

Aviator

Your corporation pays tax in the UK as it is UK registered. Your income as an employee is subject to Canadian taxation as is any other income earned whilst a tax resident of Canada. Dividends are also taxable at the same rate as income.

You can claim for foreign tax paid on any tax paid in the UK, on your Canadian tax return, so long as you can prove this has been paid.