plca

Hi all,

I am landing in Calgary with my wife in June. My current UK employer has offered to keep me on for a time (months, possibly much longer). I am a shareholder and get paid by a combination of monthly salary (33%) and dividend (67%). I will not be working for any Canadian employer whilst my UK employer requires my services.

Could anyone tell me:-

1. What level of tax I would likely pay in Canada from UK earnings, and whether the salary part of my earnings would be classed as 'employed', 'self-employed', or 'other income'. Is CPP and EI payable in this situation?

2. Is it simpler for tax purposes to invoice my UK company on a monthly basis, instead of being an employee?

3. If I remain an employee, do I or my UK employer need to declare anything to the UK tax authorities, and what implications does this have for the P85 form?

4. Can anyone recommend a good tax accountant within Calgary that has experience of dealing with ex-pats?

Questions...questions... Any help on some or all of the above much appreciated.

Paul.

R I C H

The search function is your friend.

JonboyE

I can't tell you what level of tax you will pay as I don't know how much you will be earning. Federal income tax is progressive (ie the rates go up as you earn more). Alberta tax is flat rate. The top rate in AB is 39% and this is for incomes over $126,000. The employing company could open a payroll account with the CRA and withhold income tax and CPP (no EI as you are a shareholder). Otherwise you pay CPP when you file your tax return.

Way, way, waaaaaaaaaaay simpler. And better.

It is a matter of tax residency. I assume you will become tax resident in Canada from June. If so, you should send your P85 as normal.

I don't know any accountants in Calgary. Sorry.

plca

Thanks RICH, I usually search the threads beforehand but I missed this one. Grendel's circumstances are almost identical apart from my dividend issue...

plca

Cheers JonBoyE. With my company, I needn't worry too much about the top level of tax... and with only 6 employees, unless setting up the payroll account with the CRA is *really* simple my lot won't go for that.

Maybe invoicing them monthly is the way to go. I will be tax resident, but my employer is having trouble getting my end-of-year tax info together as our building burned down in February, so I don't quite know what to do about the P85 (I'll give the tax office a call).

Thanks !

P.

Souvenir

Why bother even invoicing them? You'll have seen on the other thread that I'm in a similar position. The company has never asked me for an invoice. It does consider me to be an employee but nobody else does.