British Resident working for Canadian Company
Jan 31st 2019, 9:27 am
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British Resident working for Canadian Company
Hi everyone! My partner and I are currently going through a common law spousal sponsorship and have found this group to be very helpful through that process. I am the sponsor(Canadian), my partner is British.
This is is a bit tricky, I’m not even sure if anyone can guide us.
My partner moved to Canada on an IEC, 2 year temporary work visa. He worked in Canada during this time. With 5 months left on his IEC visa, we both decided to move to England while we worked on sponsorship, so I could experience life in England and enjoy time with his family before we settle permanently in Canada.
His Canadian employer didn’t want to let him go knowing once the PR application is (hopefully) approved he will be back. So he offered to keep him on board as an Independant Contractor. My partner accepted, we moved to England in November and he is now working for a Canadian company while residing in England (he is a writer). He has done the process of registering for self employment here in the UK as per advice from his accountant. Once PR is complete, we will move back to Canada. I should also say, payment from this company is being deposited into his Canadian bank account, and then transferred to his UK one as needed (we will leave most of it in there for when we return to Canada).
Is there anything we need to be careful of? Is he doing this right? I have nightmares of something going wrong and then he as inadmissible to Canada or something because he worked illegally.
Any guidance would be appreciated!
Kristen
This is is a bit tricky, I’m not even sure if anyone can guide us.
My partner moved to Canada on an IEC, 2 year temporary work visa. He worked in Canada during this time. With 5 months left on his IEC visa, we both decided to move to England while we worked on sponsorship, so I could experience life in England and enjoy time with his family before we settle permanently in Canada.
His Canadian employer didn’t want to let him go knowing once the PR application is (hopefully) approved he will be back. So he offered to keep him on board as an Independant Contractor. My partner accepted, we moved to England in November and he is now working for a Canadian company while residing in England (he is a writer). He has done the process of registering for self employment here in the UK as per advice from his accountant. Once PR is complete, we will move back to Canada. I should also say, payment from this company is being deposited into his Canadian bank account, and then transferred to his UK one as needed (we will leave most of it in there for when we return to Canada).
Is there anything we need to be careful of? Is he doing this right? I have nightmares of something going wrong and then he as inadmissible to Canada or something because he worked illegally.
Any guidance would be appreciated!
Kristen
Last edited by KThorne; Jan 31st 2019 at 9:32 am.
Jan 31st 2019, 10:39 am
#2
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Re: British Resident working for Canadian Company
I assume you are you doing an outland application. Are you staying in the UK until you get the COPR forms issued? He can still work for the Canadian company if in the UK. If returning to Canada before COPR forms are issued then he would have to stop working unless the IEC work permit is still valid or he gets another work permit vi another route. More details required on your plans before better advice can be given.
Jan 31st 2019, 12:15 pm
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Re: British Resident working for Canadian Company
I assume you are you doing an outland application. Are you staying in the UK until you get the COPR forms issued? He can still work for the Canadian company if in the UK. If returning to Canada before COPR forms are issued then he would have to stop working unless the IEC work permit is still valid or he gets another work permit vi another route. More details required on your plans before better advice can be given.
Jan 31st 2019, 12:18 pm
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Re: British Resident working for Canadian Company
Yes, we are doing an Outland application. We plan to stay in the UK until he recieves COPR. We were thinking about coming back earlier, but we both assumed he would have to stop working, as his IEC expires April 2019 and we aren’t expecting COPR until October 2019 at the earliest. So we will stay in the UK until COPR is in hand.
Jan 31st 2019, 1:49 pm
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Re: British Resident working for Canadian Company
Do you see any cause for concearn that he is getting paid into his Canadian bank account and then transferring it as needed? He won’t be paying Canadian taxes on anything he made after his flight left Canada to the UK because he became a self employed contractor of the UK and no longer a temporary resident of Canada.. is that correct? Sorry I know I’m asking a lot of questions, we have seeked professional guidance but a lot of people aren’t 100% positive on certain details. It’s so confusing.
Jan 31st 2019, 1:56 pm
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Re: British Resident working for Canadian Company
Wonderful, thank you for that guidance.
Do you see any cause for concearn that he is getting paid into his Canadian bank account and then transferring it as needed? He won’t be paying Canadian taxes on anything he made after his flight left Canada to the UK because he became a self employed contractor of the UK and no longer a temporary resident of Canada.. is that correct? Sorry I know I’m asking a lot of questions, we have seeked professional guidance but a lot of people aren’t 100% positive on certain details. It’s so confusing.
Jan 31st 2019, 2:19 pm
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Re: British Resident working for Canadian Company
Wonderful, thank you for that guidance.
Do you see any cause for concearn that he is getting paid into his Canadian bank account and then transferring it as needed? He won’t be paying Canadian taxes on anything he made after his flight left Canada to the UK because he became a self employed contractor of the UK and no longer a temporary resident of Canada.. is that correct? Sorry I know I’m asking a lot of questions, we have seeked professional guidance but a lot of people aren’t 100% positive on certain details. It’s so confusing.
Plenty to choose from, these guys have office across the country https://www.mnp.ca/en/office-search
Tax residency
https://www.canada.ca/en/revenue-age...cy-status.html
Last edited by Aviator; Jan 31st 2019 at 3:09 pm.
Jan 31st 2019, 2:53 pm
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Re: British Resident working for Canadian Company
In all honesty, I'm confused as to why you think this would even be a problem. He's a citizen of the UK right? And he's working there? Why do you think the Canadian authorities will have anything to do with it? I'm confused by your mention of him working illegally, so wondering if I'm misunderstanding something?
You’re correct, he is a British Citizen from birth, and a resident of the UK. I just wanted to make sure we weren't missing anything. I asked the detail about the Canadian bank account because I’m just not sure! In my mind it seems kind of weird for a person to get paid from a Canadian company, into a Canadian bank account, while not being a resident of that country. Just wanted to see if that looked odd to anyone who may be paying attention (If anyone even does). That’s sort of when I mentioned the working illegally part, I was being a little bit dramatic saying that, I do understand as long as he is a independent contractor he is able to work for whichever company, in whichever country he pleases (while residing in the UK).
The purpose of my post was to just gather some useful information and I guess to reinforce what we have already been told by other people. My partner keeps assuring me it’s quite easy and simple but, again, worrier over here, so thought I’d just reach out with some of my questions.
Jan 31st 2019, 3:07 pm
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Re: British Resident working for Canadian Company
Not necessarily. Tax residency and immigration status are quite separate. The tax payer does not get to choose where they are tax resident, CRA may still consider him tax resident and require a TD1 filed. The tax treaty should take care of off setting UK tax paid against any Canadian tax owed (if indeed there is any). If payment goes into CAD account and then transferred, the may be a capital gain in the foreign exchange to contend with too. I would be consulting a Canadian accountant and getting a professional opinion.
Appreciate your help!
Jan 31st 2019, 3:11 pm
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Re: British Resident working for Canadian Company
Jan 31st 2019, 3:19 pm
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Re: British Resident working for Canadian Company
As long as he files his taxes accurately then all should be good? At first we thought it would be so simple doing this but the more we read the more we learn the more confusing it is! I think we just need a good Canadian accountant, like you said, to help us navigate. Thank you again
