traveller555

This may have been covered before but I haven't been able to find any good examples so hoping someone can help.

I am a UK citizen who lives in Canada with an open work permit. I am a freelancer who works remotely for exclusively UK clients, none of my income comes from Canadian clients.

I have been here for around 7 months, I am about to complete my UK tax return but am also needing to think about my tax obligations in Canada.

I have an appointment scheduled with a CRA tax advisor but wanted to get peoples inputs on what I can expect, I have read about the double taxation thing but it has just left me really confused. Is my situation simpler because I only have UK income?

Interested to hear peoples experiences.

Hemlock

As a tax resident of Canada, your tax obligations would be to Canada. On your tax return (Canadian) all income is reported, wherever in the world it is earned. As contractor, you would invoice your client (no GST as they are overseas), they pay the bill, you report the income. No tax involved until reporting on Canadian return. If you earn, or expect to earn $30,000 or over in a fiscal year, as a self employed contractor, you would need to register for GST.
If the UK company withholds tax (which they should not), you need a certificate of tax paid to claim this against the income earned in the UK.

dyer

I am in a similar situation. Can anybody suggest an accountant in Quebec province, preferably Montreal, with experience of UK taxation system?

JonboyE

It is often not too clear cut. Are you in Canada for an indefinite period? Then you are most likely a Canadian resident for tax purposes. Are you in Canada for a limited time and will return to the UK at the end of your work permit? Then most likely still a UK resident. You cannot be tax-resident in both countries at the same time.

dyer

I am a Canadian citizen who lived in UK for many years, now becoming resident in Canada. Can anyone suggest an accountant in Montreal with knowledge of UK tax system?

Eggx

When i was in MTL, we used the firm below for QC/UK tax advice. But might be cheaper/better to get a UK specialised seperately.
https://vialtopartners.com/contact-us

dyer

A UK Sipp is not reportable on the CRA form listing foreign assets but is the interest received in the Sipp, if the Sipp is in cash, reportable on the annual tax return in Canada?

JonboyE

That is not correct. A SIPP is very definitely reported on the T1135 form. Income and gains within a SIPP are taxable in Canada and should be reported on your tax return.

dyer

Income and dividends in a UK stocks and shares ISA must be reported on Canada tax return. Where there are holdings in a fund where dividends are presumably reinvested in the fund and do not appear on the ISA statement, how does one do this?

MatiasHarding

As far as I know, you need to tell the Canada Revenue Agency (CRA) about all the money you make, even from your UK clients. Canada and the UK have an agreement to stop you from having to pay taxes on the same money in both places. On your Canadian tax form, you can usually ask for a credit for the taxes you've already paid in the UK, which means you'll owe less tax in Canada.