jollyRodger

It getting to that time to file my tax return (sole trader) in the uk. (and possibly in ca.) and seeking advice on what to do - or at least on what information i need to gather and where i can find out what my choices are?

I have just started a 12mounth LMO work permit in BC. My employer deducts Inc. tax / Prv IncTax / CCP / EI from my wages.

I was also here between Dec 2012-march2013 on a LMO but have yet to pay taxes.

In between these two jobs i was back home in UK earning self-employed.

I want my family to move out here with me soon. We have property in uk and are considering either selling or renting it.

I hope to be able to apply for PR in BC in the future...

where do i start to work out what to do? I have to declare my earnings very soon in the uk and was just going to declare it all there, but don't know if that's wise with property and PR regulation?

thanks for any pointers..
roger

Aviator

Depends where you are deemed tax resident. If you are tax resident in Canada, you report your world income in Canada, whether from employment or self employment, (here or overseas).

In 2012/2013 if you were tax resident in the UK, report your Canada income in the UK and keep the tax paid receipt in case you need it for CRA in the future. If you were employed in CAN in 2012,2013, tax would already have been taken and you should have a T4 from the employer.

The tax year is Jan 1 to Dec 31, all tax returns should be filed by April 30th and self employed by June 15. If you owe tax, interest accrues on it from April 30th. Everyone has to file a tax return. Also, if you own property overseas you may have to fill in a T1135 if you are tax resident here and your home here is your primary residence.

If you keep your home in the UK get a valuation before taking up tax residency in Canada for when you sell it. Also be aware of the new domicile rules in the UK for disposal of property. It has been expensive for some.

You would be best to take all your papers to an accountant (not a tax preparer).

jollyRodger

thanks Aviator.. did not know about the T1135

- yes the main thing i have to decide is where to declare myself as tax resident.....

- yes i am looking for an accountant but tricky to find one who knows both uk & ca. Anyone know where one can find such a mixture of knowledge?

- can i not just pay tax for the money i earn in ca in ca, and the money i earn in uk to be taxed in uk? rather than declaring it all to uk, and then getting a rebate from ca?

Siouxie

If you are in BC, this would be your go-to guy!

http://britishexpats.com/forum/member.php?u=71876

JAJ

You don't have a choice in the matter since it's based on the tax laws of the country. It is possible you may be tax resident in both countries, however you can usually take relief for foreign taxes and the tax treaty between the U.K. and Canada may also avoid cases of dual residence.


Not likely to happen. You'll need a Canadian tax accountant for your Canadian taxes, and a U.K. accountant for your U.K. taxes. They should be capable of talking to each other.


No.

Aviator

You don't declare yourself tax resident, you need to check the criteria in each country to see were you were tax resident.

http://www.hmrc.gov.uk/international/res-dom.htm
http://www.cra-arc.gc.ca/tx/nnrsdnts...sdncy-eng.html

You cannot just decide where to pay tax, your tax residency determines this for you. The UK and Canada have a reciprocal tax agreement, so you won't pay twice, you would just and up paying the difference if any.

If you pay tax in the UK for income earned there, you have to report it to CRA as a CAD tax resident, then claim for foreign tax paid on your CAD return (so long as you have the certificate of tax paid from the UK). If the CAD tax would have been higher you pay difference, if lower you won't get a rebate from CRA for foreign tax paid.

You don't really need an accountant who knows both UK and CAD rules, if you are tax resident in Canada you just need to comply with the CAD rules. There are a number firms around who have accountants current on international tax rules, generally the larger ones and they can be costly.

If you plan on living for a lengthy time in Canada and have assets in the UK, cut ties with the UK to be domiciled in Canada.

jollyRodger

thanks for all the pointers! have a good week.