confused_uk

Hello all

My old firm in the UK are considering hiring me back to work remotely from Canada. I used to work for them under a contract basis so if they did hire me they would expect to do something similar. I've been doing the odd job for them here and there in the past 5 years since I've been here, I put it down as self employed income on my tax returns.

My question is, if they hire me back full time how does that work? I think if I earn more than $30K I have to be registered for HST and charge them that but if that's the case they won't offer me the job, I could take the hit myself but that seems rather unfair that I would effectively be paying tax twice. What do I do? I need to make it as seamless and easy for them as possible to be in with a chance.

We've really struggled financially since we moved here so this would be a real lifeline for us.

Thanks in advance

Siouxie

If you are providing a service (not physical goods) then there is no HST payable for an overseas client - you invoice at 0%. (once you reach $30,000 accumulative income you have to register for HST). If they were in Canada you would have to charge them it - but if their business is in the UK, you don't. See 'exported services'
https://www.canada.ca/en/revenue-age...s-exports.html

You will invoice them, as a freelance self employed contractor - they then pay you directly without any 'stoppages'. If you work as self employed there are many tax deductions you can make for use of home office, etc., which may help your finances a bit as well.
https://www.canada.ca/en/revenue-age...-expenses.html
https://www.canada.ca/en/revenue-age...-expenses.html

confused_uk

So are you saying there is no HST? They would be paying me over $30k

confused_uk

Sorry Siouxie, I misread your post. So what you are saying is that I would still need to register but don't charge them it because they are overseas. Phew, that makes it easier then.

Thanks

Siouxie

Welcome!
Once your income from self employment reaches $30,000 you have to register for HST.. but as an overseas client that you are providing a service to (i.e. you aren't sending them physical goods you are selling) then you invoice them at 0% (you have to put it on the invoice... but there is 0 for them to pay )

For Service provided 01/05/2021 to 31/05/2021 -- 160 hours @ $75 per hour.. -- $12,000
HST @ 0 % - $0.00
Total Amount Due $12,000

confused_uk

Thanks. I'm guessing if I do any other work on top of that for Canadian clients I would have to charge them HST, correct?

Siouxie

You've got it Canadian clients get charged HST once you reach the threshold and register

confused_uk

Thanks again Siouxie