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Canadian Citizen working freelance for UK company

Canadian Citizen working freelance for UK company

Old Jun 24th 2020, 9:07 pm
  #1  
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Default Canadian Citizen working freelance for UK company

Hey guys - sorry if this has been answered previously but I couldn't figure out what was needed and lots of the information was from a few years ago...

I'm a Canadian citizen, but am currently working in the UK. My visa expires soon, so my company wants to keep me on as a freelance abroad. Few questions:
- Should I be setting up my taxes in Canada? Or the UK?
- Where do I need to set myself up to be a Canadian freelancer (I live in Vancouver)
- What is the best way for them to pay me?

Any information or support is greatly appreciated!!!
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Old Jun 25th 2020, 5:59 pm
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Default Re: Canadian Citizen working freelance for UK company

Hello and welcome to BE!

So you will be living in Canada working as a freelance self employed worker undertaking contracts for a UK company...... much as I do... you pay taxes in the country you live in. You will need to invoice them each month and they will send you a transfer to your bank account in Canada.

There are a few people on here who work remotely as freelancers,

You have a couple of choices.. you can work under your own name and just register as self employed (sole trader), or you can have a business name and register yourself as a business - with a business number etc., - no need for incorporation. By being self employed there are many tax deductions you can make for 'home office' which will help, but bear in mind you have to pay CPP (both employer and employee parts as a self employed person) as well as register for HST once you earn in excess of $30,000 although as the company you provide a service to is located overseas, the HST rate will be 0.

Do be aware that if they are your only contract Revenue Canada could deem that you are employed by them - so best to have a small advert somewhere showing what your business is (or a free website advertising your services)

For BC - here's a handy small business start up section
https://smallbusinessbc.ca/starting-a-business
https://vancouver.ca/guides/starting...-business.aspx
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Old Jun 28th 2020, 3:14 pm
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Default Re: Canadian Citizen working freelance for UK company

This is exactly what was needed, thank you so much for the help ! Also just to confirm, if Revenue Canada deem that I'm employed by them, what would this mean?
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Old Jun 30th 2020, 2:49 am
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Default Re: Canadian Citizen working freelance for UK company

I don't know about your UK company but I'm a UK citizen and i work remotely for a UK company on short term contracts. I have to prove my right to work in the UK (passport) to them
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Old Nov 18th 2020, 10:23 am
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Default Re: Canadian Citizen working freelance for UK company

Originally Posted by drehelp View Post
This is exactly what was needed, thank you so much for the help ! Also just to confirm, if Revenue Canada deem that I'm employed by them, what would this mean?
Hello! I am in a similar situation (on a work visa in the UK, moving to Canada permanently on a PR) and am exploring the option of continuing to work for my employer as a freelance contractor. Did you get this sorted? Happy to pay for an accountant's services if needed.
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Old Nov 20th 2020, 10:07 am
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Default Re: Canadian Citizen working freelance for UK company

Originally Posted by the_ant View Post
Hello! I am in a similar situation (on a work visa in the UK, moving to Canada permanently on a PR) and am exploring the option of continuing to work for my employer as a freelance contractor. Did you get this sorted? Happy to pay for an accountant's services if needed.
Looks like this sort of thing will be becoming more regular, especially because of Covid. I am a UK/Canadian citizen who is currently living and working in the UK and will be going back to Canada (BC) next year. I am exploring continuing to work for my current employer as a contractor. Curious to know what happens if CRA do deem me to be employed by them only. I noticed the bit about making a website for my services, or advertising to show I am a contractor. Another option I was thinking about was continuing for my employer and get my tax code changed so I can pay all my taxes in Canada instead. Not sure which option is best.
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Old Nov 20th 2020, 7:19 pm
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Default Re: Canadian Citizen working freelance for UK company

Originally Posted by dj322 View Post
Looks like this sort of thing will be becoming more regular, especially because of Covid. I am a UK/Canadian citizen who is currently living and working in the UK and will be going back to Canada (BC) next year. I am exploring continuing to work for my current employer as a contractor. Curious to know what happens if CRA do deem me to be employed by them only. I noticed the bit about making a website for my services, or advertising to show I am a contractor. Another option I was thinking about was continuing for my employer and get my tax code changed so I can pay all my taxes in Canada instead. Not sure which option is best.
I doubt the CRA will worry too much if your contracting for only 1 overseas company The suggestion of showing you are 'advertising / available' for other work is aimed more if you have a Canadian client - where you could be deemed as an employee if they are your only client.
On that note, if you have Canadian clients be aware that you will need to charge them HST/GST.. whereas overseas contract work (service) is 0 rated. I have worked on and off for agencies in the UK... it's usually easier to invoice them, do your own taxes / pay CPP etc., and gain the tax breaks you can claim, rather than be negotiating between 2 taxation bodies and the resulting issues that can arise.

You probably don't need an accountant unless you are earning mega bucks and have property in the UK / pensions / investments etc.

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