daisycutter

Hi,i used to live and work full time in Vancouver but left to travel back to NZ and am now back in UK ... but my former employer has been pestering for me to return to Vancouver and I was thinking about FIFO type terms and going self employed as I don't intend to come back to live ( although my wife would return back to West Van like a shot ) I currently don't work in the UK out of choice and so no taxable income there. So just looking for any advice in terms of whether going self employed for a few months / 6 months etc. would be tax effective and whether this type of employment might be a problem for me as I would be still living effectively in the UK ... any advice greatly appreciated ... cheers.

foreigngirl

If you're living permanently in the UK, you pay tax in the UK. It doesn't matter that the company that you invoice is in Canada.

Aviator

All depends on where you are tax resident, that is where you will pay tax. If you reside in Canada for 183+ and or have other residential ties, healthcare, drivers license, immediate family in Canada etc. you would likely be a tax resident of Canada. Even as a visitor you can still be a deemed tax resident.

If you commute to Canada from the UK and have no ties in Canada you may be a UK tax resident and report your income there.

Not sure what you mean by living effectively, you either are living there or not. You cannot be residing in Canada and 'effectively' living in the UK.

You should also consider whether you can work in Canada, if you have PR, need to get a work permit etc. If you work for a Canadian company and do this work from within Canada, whilst living here, you need a work permit, PR or be Canadian. If you do the work remotely from the UK and bill the company as a client, occasional visits to your client, you would likely not need any residency permit.

Your tax situation depends on your personal circumstances. Unless you are kept by your spouse or a wealthy relative, presumably you have some sort of income, to survive, even investments, so some tax liability. Any additional income is going to affect your tax situation, your accountant should be able to advise you.

daisycutter

HI, thanks for the reply ... I am currently resident in the UK and anticipate flying to Vancouver, working 4 weeks on and a week back in UK and back to Vancouver for 4 weeks etc. but really hope I will not be doing this for longer than 4-5 months. I currently do not work in the UK and am effectively retired and draw no benefits etc. ... so currently no taxable income etc. I will have no property or family ties in Vancouver .. company will provide healthcare ... so am guessing this points me toward being paid on a gross income basis in Vancouver and declaring in UK ....

Aviator

To get extended health you would need to be registered for MSP (Provincial Healthcare), for which you need to be a resident and have lived in BC for 3 months before it kicks in.

Few if any company schemes cover basic healthcare, they are 'extended' and cover what the provincial scheme does not cover. So you may find you need to take out a private travel policy. Most also require you to be registered for MSP to participate. You may also want to check that as a contractor you would be eligible or if the company will pay for a travel policy to cover you.

If you are a contractor, you would be paid gross, it just depends on your tax residency as to where you pay tax, you really should talk to an accountant in both countries. Also, can you legally work in Canada, you cannot do this on a visitor entry. If all the time you spend in Canada in a calendar year, in whatever capacity, adds up to 183 days or more, you would likely be liable for tax in Canada.

daisycutter

Many thanks for the info ... yes I guess I will need the health travel policy, just couldn't remember if the 3 month thing applied in BC as I think it did when we were in Ontario for a while .. but company will pay for whatever I need and all accomm,car etc. ... I have PR so guess that lets me work ? best regards.

PMM

Hi

One question. Are you a Canadian citizen or still a permanent resident? If not, you can't work in Canada without a work permit, and your employer would have to obtain a Labour Market Opinion and you a work permit.

Aviator

Have you met the 2 out of 5 residency requirements?

daisycutter

Hi ... I am not sure what these are ?

james.mc

Oops! Here we go!

To retain PR status you need to have been in Canada for 2 of the 5 years starting from the day you 'landed' (not the date your PR card was issued).
If you have not met that requirement you will have lost your PR status, so won't be able to work as a PR. You'd need to find another way to legally work in Canada.

daisycutter

Hi ... I see this is not easy ... I landed march 2004 and stayed until Jan 2005 , returned July 2007 and then left September 2011 ... my wife says I will always have PR as she has citizenship but I am not so sure now ... cheers.

oopsbuddy

Even to my weak mathematical skills that sounds like more than 24 months...?

ritchieee

From someone who is looking to move for a few years and work possibly self employed, this looks relevant!

Aviator

Accompanying a Canadian citizen spouse overseas you are OK, this counts toward maintaining PR, but not the citizenship qualifying period.

daisycutter

ok cheers, the citizenship for me is no issue as I do not ever intend to become a Canadian citizen as I have other citizenships/PR's for other countries .. but my wife would not be accompanying me be back to Vancouver for my work as I only intended it to be short term ... but I will ask my employer to confirm that I can work ... if not France beckons for the summer with the kids ... very many thanks.