mandymoochops

Well duly filled in our assesment back in March, put all the income we recieved in UK (both me and Mr MMC paye) and my poultry $400 that I earned in Canada last year and Mr Mmc's 5 weeks worth of earnings for the period that we were in Canada last year.

Well Friday we get a frickin bill for tax owed, me for $5,400 amd Mr MMC for more.

WTF we didn't earn that here even last year - I am livid :curse:

Danny B

How can you owe $5,400 if you only made $400?

It must be a mistake, I wouldn't worry about it too much.

Steve_P

Sounds like a phone call is in order to get an explanation and possibly appeal.

iaink

Of course its possible to pay more than your canadian income, as by the sound of it you didnt pay tax on your UK income to the inland revenue... What would you have paid if you were in the UK?

In theory you shouldnt pay (much) more under the double indemnity thing, so if you have already paid tax in the UK, then something is amiss.

Did you DIY or pay someone lile HR Block to do the return?

dbd33

I'd guess you need to provide something showing that tax was paid in the UK.

mandymoochops

Have just called the very nice man - apparently when I filled in the forms I put down all the income we earned for that year (both in the UK and Canada) for the whole tax year. (Thought I was being good by showing them every penny we earned!)

I should have just put down the amounts earned from the dates we were in Canada

I nearly threw up when I got the assesment on Friday - I am a div.

All we have to do is submit an adjustment form and fill in the correct amounts and it will be adjusted (I think I will include the end of year thingys with them just in case )

Surrey Expat

If you have already paid tax on the UK income, did you claim for foreign tax paid? If not you will be taxed on your total income as a Canadian tax resident. Presumably the UK income was earned while you were living in Canada as a tax resident, it is therefore taxable in Canada if it has been paid gross. If it was paid net, the payer should have sent you a form showing the tax you paid, you then include this with your Canadian tax return.

mandymoochops

Well when I spoke to the guy he went through my tax return and said that I had entered too much in one line (ie put the joint Canadian and uk income earned!!!)

To be honest when I filled in the return I was pretty sure that I put the UK income in a different bit, and as I said before we were both in PAYE jobs there with no other complicated stuff like interest income / rental income etc to take into account.

Oh well must have done something wrong but at least they were cool about it

No the UK income stopped when we moved to Canada - ie Mr MMC and I handed our notices in had two weeks before we moved and then came here. So strictly speaking no UK income was earned whilst we were in Canada.

Rob_999

In the year you first move to Canada, you only need to include (worldwide)income from date you arrived on your Canadian tax return. So in your case should have just been $400.

mandymoochops

Thanks Rob I know that now

Surrey Expat

If you file adjustment that should correct the problem. If you used a tax preparer they should be able to do that.