Redundancy and its implications
#1
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Redundancy and its implications
Fingers crossed me and kids are in Canada for 8 December 2008, im holding off for that date because 1 - we need visa's first and 2 - im getting made redundant from Barclays (bring it on) on Sunday 30th November.
The way it works is i will get 3 months wages (gardening leave) then my redundancy package and bonus in Feb 09, unless i hand in my notice on 1st December then i will get everything in one go on 23rd January, which is how im going to do it.
So how do i stand with this money as i receive it after i move to Canada and although the wages are taxed,the redundancy payment is tax free as its under £30k, i will though be putting the money straight into a savings account in Canada for a rainy/snowy day.
Also how do i stand with sending off the P85 to Inland Revenue as when i leave i'll will still be having more money coming to me.
Please dont tell me the Canadian Gov will tax me to the hilt .. i just want it all for myself/family.
Thanks in advance ..
The way it works is i will get 3 months wages (gardening leave) then my redundancy package and bonus in Feb 09, unless i hand in my notice on 1st December then i will get everything in one go on 23rd January, which is how im going to do it.
So how do i stand with this money as i receive it after i move to Canada and although the wages are taxed,the redundancy payment is tax free as its under £30k, i will though be putting the money straight into a savings account in Canada for a rainy/snowy day.
Also how do i stand with sending off the P85 to Inland Revenue as when i leave i'll will still be having more money coming to me.
Please dont tell me the Canadian Gov will tax me to the hilt .. i just want it all for myself/family.
Thanks in advance ..
#2
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Joined: Jul 2004
Location: Was Red Deer, Alberta, now UK
Posts: 23
Re: Redundancy and its implications
My advice would be to fly out on the 24th January! (or later.)
Your redundancy payment, although tax free in the UK would be subject to Canadian tax if you are resident in Canada at the time of receipt.
Your redundancy payment, although tax free in the UK would be subject to Canadian tax if you are resident in Canada at the time of receipt.
#3
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Joined: Aug 2007
Location: New Caledonia
Posts: 1,810
Re: Redundancy and its implications
Fingers crossed me and kids are in Canada for 8 December 2008, im holding off for that date because 1 - we need visa's first and 2 - im getting made redundant from Barclays (bring it on) on Sunday 30th November.
The way it works is i will get 3 months wages (gardening leave) then my redundancy package and bonus in Feb 09, unless i hand in my notice on 1st December then i will get everything in one go on 23rd January, which is how im going to do it.
So how do i stand with this money as i receive it after i move to Canada and although the wages are taxed,the redundancy payment is tax free as its under £30k, i will though be putting the money straight into a savings account in Canada for a rainy/snowy day.
Also how do i stand with sending off the P85 to Inland Revenue as when i leave i'll will still be having more money coming to me.
Please dont tell me the Canadian Gov will tax me to the hilt .. i just want it all for myself/family.
Thanks in advance ..
The way it works is i will get 3 months wages (gardening leave) then my redundancy package and bonus in Feb 09, unless i hand in my notice on 1st December then i will get everything in one go on 23rd January, which is how im going to do it.
So how do i stand with this money as i receive it after i move to Canada and although the wages are taxed,the redundancy payment is tax free as its under £30k, i will though be putting the money straight into a savings account in Canada for a rainy/snowy day.
Also how do i stand with sending off the P85 to Inland Revenue as when i leave i'll will still be having more money coming to me.
Please dont tell me the Canadian Gov will tax me to the hilt .. i just want it all for myself/family.
Thanks in advance ..
http://www.cra-arc.gc.ca/E/pub/tp/it365r2/it365r2-e.txt
Section 14.
#4
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Joined: Feb 2007
Posts: 316
Re: Redundancy and its implications
I am not waiting until Jan to leave England, i haven't seem hubby since May and i miss him like crazy (and all of his faults ), the kids and cat also miss him terribly.
Oh well .. in one hand and out the other ..
OR .. although i will have to look into it in more detail, can the Canadian Gov touch the money if i leave it in the UK (my current a/c) or maybe purchase items in canada with my UK credit card and pay off from UK current a/c, that way im being taxed on canadian good brought in canada ..
Im sure there is no way around it, but if there are any accountants on here that can tell me of somekind of loophole .. if any, i would be very grateful.
Oh well .. in one hand and out the other ..
OR .. although i will have to look into it in more detail, can the Canadian Gov touch the money if i leave it in the UK (my current a/c) or maybe purchase items in canada with my UK credit card and pay off from UK current a/c, that way im being taxed on canadian good brought in canada ..
Im sure there is no way around it, but if there are any accountants on here that can tell me of somekind of loophole .. if any, i would be very grateful.
#5
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Joined: Aug 2007
Location: New Caledonia
Posts: 1,810
Re: Redundancy and its implications
Until an accountant knows your full circumstances it would all be speculation. Once you are deemed a tax resident you have a legal obligation to declare world income. If they find out about it they can certainly come after you for it, plus interest and penalties if it is found you owe tax.
#6
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Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
Re: Redundancy and its implications
OR .. although i will have to look into it in more detail, can the Canadian Gov touch the money if i leave it in the UK (my current a/c) or maybe purchase items in canada with my UK credit card and pay off from UK current a/c, that way im being taxed on canadian good brought in canada ..
Im sure there is no way around it, but if there are any accountants on here that can tell me of somekind of loophole .. if any, i would be very grateful.
Im sure there is no way around it, but if there are any accountants on here that can tell me of somekind of loophole .. if any, i would be very grateful.
However, you should consider consulting an accountant because they may be able to find tax savings measures you haven't thought about. Many people in Canada pay more tax than they need to.
If you are working in Canada you and your OH will accrue RRSP contribution room. Once you have the room either you or your OH can put the money into an RRSP and you will get your tax back (maybe even more if one of you are paying at a higher rate then).
#7
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Joined: Feb 2007
Posts: 316
Re: Redundancy and its implications
Thank you ever so much for your replies.
I have spoken to Inland Revenue this morning as i was number crunching during my limited sleep last night.
I was told that i will be taxed in the UK from the source so i cant hand in my P85 until January 09 and i must include my P45, she also mentioned that i shouldnt be taxed on the money in Canada and to make sure i have a copy of my P45 to prove that i have paid tax on it in the UK.
Lets hope she is right.
We'll see what happens ..
Thanks again
I have spoken to Inland Revenue this morning as i was number crunching during my limited sleep last night.
I was told that i will be taxed in the UK from the source so i cant hand in my P85 until January 09 and i must include my P45, she also mentioned that i shouldnt be taxed on the money in Canada and to make sure i have a copy of my P45 to prove that i have paid tax on it in the UK.
Lets hope she is right.
We'll see what happens ..
Thanks again
#8
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Joined: Aug 2007
Location: New Caledonia
Posts: 1,810
Re: Redundancy and its implications
Thank you ever so much for your replies.
I have spoken to Inland Revenue this morning as i was number crunching during my limited sleep last night.
I was told that i will be taxed in the UK from the source so i cant hand in my P85 until January 09 and i must include my P45, she also mentioned that i shouldnt be taxed on the money in Canada and to make sure i have a copy of my P45 to prove that i have paid tax on it in the UK.
Lets hope she is right.
We'll see what happens ..
Thanks again
I have spoken to Inland Revenue this morning as i was number crunching during my limited sleep last night.
I was told that i will be taxed in the UK from the source so i cant hand in my P85 until January 09 and i must include my P45, she also mentioned that i shouldnt be taxed on the money in Canada and to make sure i have a copy of my P45 to prove that i have paid tax on it in the UK.
Lets hope she is right.
We'll see what happens ..
Thanks again
#9
Forum Regular
Joined: Nov 2007
Posts: 90
Re: Redundancy and its implications
I believe that the redundancy pay is tax-free across the world, as the UK tax office deems it to have been covered for tax (weird accounts I know)
I WOULD STILL TALK TO A CANADIAN ACCOUNTANT ABOUT THIS...
Holiday in Canada for a month, go back to the UK, recieve your payment and then return and go through immigration, less hassle than sorting out the income thing
I WOULD STILL TALK TO A CANADIAN ACCOUNTANT ABOUT THIS...
Holiday in Canada for a month, go back to the UK, recieve your payment and then return and go through immigration, less hassle than sorting out the income thing
#10
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Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
Re: Redundancy and its implications
I WOULD STILL TALK TO A CANADIAN ACCOUNTANT ABOUT THIS...
Holiday in Canada for a month, go back to the UK, recieve your payment and then return and go through immigration, less hassle than sorting out the income thing
It depends on the amounts involved, but the tax savings may merit a nice Christmas holiday in, say, Florida.