Go Back  British Expats > Living & Moving Abroad > Canada
Reload this Page >

Pay tax on UK income

Pay tax on UK income

Old Apr 28th 2010, 3:33 pm
  #1  
BE Forum Addict
Thread Starter
 
Joined: Jun 2007
Location: Musquodoboit Harbour, Nova Scotia
Posts: 2,549
destinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond repute
Default Pay tax on UK income

My daughter has moved to Canada to live with us, she landed as a PR on Sunday.

She is expecting her first baby an so she is still in receipt of maternity pay in the UK which she is taxed on.

I know that she will be taxed in Canada on her worldwide income, so how does she go about stopping paying tax in the UK so that she isn`t taxed twice, or is it that she has to pay it and then claim it back.

I am sure that this has been discussed before but I just can`t seem to find it.

Thanks in advance for your help.
destinationnovascotia is offline  
Old Apr 28th 2010, 3:42 pm
  #2  
Slob
 
Joined: Sep 2009
Location: Ottineau
Posts: 6,307
Souvy has a reputation beyond reputeSouvy has a reputation beyond reputeSouvy has a reputation beyond reputeSouvy has a reputation beyond reputeSouvy has a reputation beyond reputeSouvy has a reputation beyond reputeSouvy has a reputation beyond reputeSouvy has a reputation beyond reputeSouvy has a reputation beyond reputeSouvy has a reputation beyond reputeSouvy has a reputation beyond repute
Default Re: Pay tax on UK income

Originally Posted by destinationnovascotia View Post
My daughter has moved to Canada to live with us, she landed as a PR on Sunday.

She is expecting her first baby an so she is still in receipt of maternity pay in the UK which she is taxed on.

I know that she will be taxed in Canada on her worldwide income, so how does she go about stopping paying tax in the UK so that she isn`t taxed twice, or is it that she has to pay it and then claim it back.

I am sure that this has been discussed before but I just can`t seem to find it.

Thanks in advance for your help.
You only get taxed once. She should declare the foreign income on her Canadian tax return and also claim a foreign tax credit. The latter gets knocked off the bill.

Keep all the paperwork. The return will quite likely get audited by Revenue Canada. There is no problem, as long as you can show that tax has been paid. If the tax hit on the gross is higher than what has already been paid, you just cough up the difference.

She could probably ask for the maternity pay to be paid gross but it would likely be more trouble than it's worth, particularly since it's a temporary thing.
Souvy is offline  
Old Apr 28th 2010, 4:18 pm
  #3  
Lost in BE Cyberspace
 
Almost Canadian's Avatar
 
Joined: Aug 2005
Location: South of Calgary
Posts: 13,043
Almost Canadian has a reputation beyond reputeAlmost Canadian has a reputation beyond reputeAlmost Canadian has a reputation beyond reputeAlmost Canadian has a reputation beyond reputeAlmost Canadian has a reputation beyond reputeAlmost Canadian has a reputation beyond reputeAlmost Canadian has a reputation beyond reputeAlmost Canadian has a reputation beyond reputeAlmost Canadian has a reputation beyond reputeAlmost Canadian has a reputation beyond reputeAlmost Canadian has a reputation beyond repute
Default Re: Pay tax on UK income

Originally Posted by destinationnovascotia View Post
My daughter has moved to Canada to live with us, she landed as a PR on Sunday.

She is expecting her first baby an so she is still in receipt of maternity pay in the UK which she is taxed on.

I know that she will be taxed in Canada on her worldwide income, so how does she go about stopping paying tax in the UK so that she isn`t taxed twice, or is it that she has to pay it and then claim it back.

I am sure that this has been discussed before but I just can`t seem to find it.

Thanks in advance for your help.
You may want to check if she is entitled to receive maternity pay now she is no longer a resident of the UK.

If it is statutory maternity pay, a government website will provide the answers, if it is maternity pay that her former employers are paying to her, she will need to look at her contract of employment.

Apologies if you have already looked into this
Almost Canadian is offline  
Old Apr 28th 2010, 7:40 pm
  #4  
BE Forum Addict
Thread Starter
 
Joined: Jun 2007
Location: Musquodoboit Harbour, Nova Scotia
Posts: 2,549
destinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond repute
Default Re: Pay tax on UK income

Originally Posted by Almost Canadian View Post
You may want to check if she is entitled to receive maternity pay now she is no longer a resident of the UK.

If it is statutory maternity pay, a government website will provide the answers, if it is maternity pay that her former employers are paying to her, she will need to look at her contract of employment.

Apologies if you have already looked into this
Yes thanks, we have checked. It is from her employers and she is entitled to her maternity pay even if she is not returning to work.

Thanks for the advice though.
destinationnovascotia is offline  
Old Apr 28th 2010, 7:41 pm
  #5  
BE Forum Addict
Thread Starter
 
Joined: Jun 2007
Location: Musquodoboit Harbour, Nova Scotia
Posts: 2,549
destinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond reputedestinationnovascotia has a reputation beyond repute
Default Re: Pay tax on UK income

Originally Posted by Souvy View Post
You only get taxed once. She should declare the foreign income on her Canadian tax return and also claim a foreign tax credit. The latter gets knocked off the bill.

Keep all the paperwork. The return will quite likely get audited by Revenue Canada. There is no problem, as long as you can show that tax has been paid. If the tax hit on the gross is higher than what has already been paid, you just cough up the difference.

She could probably ask for the maternity pay to be paid gross but it would likely be more trouble than it's worth, particularly since it's a temporary thing.
Thanks. We will just save everything and wait until the end of the year.
destinationnovascotia is offline  
Old Apr 29th 2010, 11:48 am
  #6  
Slob
 
Joined: Sep 2009
Location: Ottineau
Posts: 6,307
Souvy has a reputation beyond reputeSouvy has a reputation beyond reputeSouvy has a reputation beyond reputeSouvy has a reputation beyond reputeSouvy has a reputation beyond reputeSouvy has a reputation beyond reputeSouvy has a reputation beyond reputeSouvy has a reputation beyond reputeSouvy has a reputation beyond reputeSouvy has a reputation beyond reputeSouvy has a reputation beyond repute
Default Re: Pay tax on UK income

Originally Posted by destinationnovascotia View Post
Thanks. We will just save everything and wait until the end of the year.
It shouldn't be a problem. I also have a UK income (a trust fund). That pays out each year and some tax (10%) is deducted before I get it. On my tax return, I declare the gross, along with the tax I have already paid. It's never been a problem, although Revenue Canada always comes back to me asking for proof that the tax was paid.
Souvy is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.