Khirons

I’m new to this forum. Some great posts on here and seen some good advice but wanted some general advice on what considerations I would need when considering a job move.

Have been approached by a company in Vancouver. Early days and several hurdles to go but wanted to get a feel for the kind of issues I may come across. I’m not in a position to do a wholesale move with my family for another 3 years. So my thinking, if I’m successful in securing this role is to fly out, work for two months, fly home and work from home for a month. Four cycles per year. Already agreed with the employer that this could be an option.

I’m used to the working away from home routine, done it for many years in the UK but never overseas. What I don’t understand is how I would get paid. Would I need to have a Canadian bank account, pay Canadian tax, pension etc and then send the money to my uk bank account. Am I simplifying this too much? It’s likely way more complicated than that??

Any generic advice or a pointer to similar post would be much appreciated.

Jerseygirl

Welcome to BE.

First things first, I am pretty sure you will need a visa to do what you wish to do. If you wish to pursue the visa route, please post visa questions here:

https://britishexpats.com/forum/immi...hip-canada-33/

No doubt someone will be along before too long to assist you re questions of bank accounts, tax etc.

Khirons

Thank you. Visa applications have already been discussed and there’s help available from the employer, but will take a look.

Jerseygirl

You may also find this useful:

https://britishexpats.com/wiki/Category:Canada

SanDiegogirl

Presumably you'll be regarded as working in Canada, so unless you arrange something differently your income will be paid into a Canadian bank account and you'll pay Canadian taxes. Yes, you'll then transfer money to the UK
You'll have 2 residences to maintain - so hope your new job has a high enough salary to cover this - this is going to be a very expensive exercise.

Farmer on a bike

Other way around. The GBP is much weaker on CAD than it was 20/25 years ago. Used to get between $2.25 and $2.60 to the £, now $1.60 to $1.70 ish (£0.44 GBP to the $, now £0.58 to £0.60 to the $). CAD to GBP is the best way to be going, however if it then comes back to CAD lots lost in the FX mechanism.

Farmer on a bike

Highest likelihood you will be deemed Canadian tax resident, your employer will be (should be) making appropriate deductions. Any UK source income will also be reported on your Canadian tax return as well as any foreign assets that had a cost of $100,000 or more (T1135). T1135 is not required in the year in which you become a tax resident, but every year thereafter. Tax year is Jan 1 to Dec 31, filing deadline April 30, unless you have self employment income, then June 15. Any tax owing after April 30 will be charged interest and penalties if return filed late.

As you will have strong ties in both countries, would be advisable to consult an accountant to be sure you get it right and claim appropriate foreign tax paid credits.

Siouxie

Hello and welcome to BE!

The employee will need to get an LMIA for you to work as a temporary employee on a temporary work permit (TWP) - and you will be liable for worldwide income in Canada as soon as you become resident for tax purposes (offset against taxes due in the UK). We have a useful wiki section on taxation that you might find of use https://britishexpats.com/wiki/Category:Taxes-Canada

Do ascertain that this temporary job will lead to a successful application for Permanent Residence - it's not automatic and will need to be applied for. Perhaps read through the wiki on this subject, paying careful attention to Christmasoompa's post https://britishexpats.com/wiki/Quick...an_Immigration
,

Khirons

Thank you all for some great advice and links. Exactly what I was hoping for.
You’ve confirmed my concerns around the complexity of maintaining two residencies and the cost associated with it. I’ll have a good read through the wiki links and see how it shapes up.

Thanks everyone!

dbd33

I dunno about this scheme. Covid has focused my employer's attention on people working from outside Canada (a good number of people were stranded by covid and worked from abroad for a year or more). Prior to covid I had routinely worked for them from Europe or from the US. Now that they've looked at the implications there's a clamp down and no more of that is allowed.

The concern is that the enterprise may be deemed to be employing the person in their physical location. From the perspective of the Canadian authorities 183 days is important, fewer than that outside Canada and the person is deemed to be tax resident in Canada. It may be that that is also a magic number for the UK authorities but the enterprise, in Canada, doesn't want to have to know about the regulations in umpteen countries. Rather than find out whether or not they're liable for the equivalent of EHT in Azerbaijan or pension contributions in the Central African Republic, they have a blanket ban on foreign work (by employees and direct contractors).

Siouxie

It can also be based on primary and secondary ties to Canada, when not physically present... a good read of the relevant section may help to determine the 'residence status' (deemed / factual / non)

Gozit

OPs post indicates the employer is willing to accommodate this so I don't think this is relevant.

My (US) employer navigates that by paying me as self employed.

Farmer on a bike

In Canada, the employer nor employee get to make a choice. One is employed or self employed by CRA regulations https://www.canada.ca/en/revenue-age...-employed.html

dbd33

We don't know in what level of detail the prospective employer has considered this nor the context of the proposal. If the employer is a firm of three people accustomed to bending the rules then it's likely safe. If the employer is a large corporation with HR and procurement departments the proposal may fall apart once they see it. I would be cautious, that's all.

Mordko

We hire people like this, mostly Americans. If they spend more than 6 months in Canada then Canadian taxes kick in. They usually negotiate “tax equalization” to compensate for our taxes which almost doubles their rates (depending on the state) but shouldn’t be quite as bad for the Brits. If its a large company they usually have divisions responsible for moving people around and I would assume they know what they are doing. Right now you might have additional challenges.