Split tax year question
Mar 25th 2023, 5:49 pm
#1
Just Joined
Thread Starter
Joined: Sep 2022
Posts: 3
Split tax year question
Hi everyone. Hope this is an easy one to answer...
My wife and I moved over (as PR) last August and are now submitting our CRA tax returns. When declaring our income for 2022 PRIOR to us arriving in Canada, should we declare the amount we earned from 6th Apr 2022 (i.e. 22/23 tax year) or try and pro rata our UK earnings from Jan 22 to Apr 22 (i.e. 21/22 tax year) and add those as well? This whole different tax years thing is a bit confusing...
We have P45s from our old UK employers summarising our income from Apr-Aug 2022 but how (or should we even bother?) to declare the Jan-Apr 2022 portion?
FYI, I know we only get taxed on worldwide income from the day we became resident but seemingly there's a section in the T1 to declare what we earned before arriving.
Thanks,
Tom
My wife and I moved over (as PR) last August and are now submitting our CRA tax returns. When declaring our income for 2022 PRIOR to us arriving in Canada, should we declare the amount we earned from 6th Apr 2022 (i.e. 22/23 tax year) or try and pro rata our UK earnings from Jan 22 to Apr 22 (i.e. 21/22 tax year) and add those as well? This whole different tax years thing is a bit confusing...
We have P45s from our old UK employers summarising our income from Apr-Aug 2022 but how (or should we even bother?) to declare the Jan-Apr 2022 portion?
FYI, I know we only get taxed on worldwide income from the day we became resident but seemingly there's a section in the T1 to declare what we earned before arriving.
Thanks,
Tom
Mar 26th 2023, 6:04 pm
#2
dah diddly dah
Joined: Jan 2015
Location: White Rock BC
Posts: 154
Re: Split tax year question
You might find an answer at Benefits, credits, and taxes for newcomers - Canada.ca
I think you need to declare your full income (for the Canadian tax year) but pro-rata it showing amount received before and after arrival.
And indeed there is a section for declaring global income and the same applies, declare it for the calendar year and pro-rata accordingly. You shouldn't be taxed on anything before you arrived in Canada.
As a general rule, only send what is asked for, if CRA want more (evidence) they will ask for it.
I employed an accountant for my first return but it was hard to find one who is familiar with UK and Canadian tax. On reflection, it was poor value - especially when I noticed (too late) that the small print said they would not deal with any follow-up questions unless I paid more money!
Also look at the Tax Treaty between Canada and the UK - Convention Between the Government of Canada and the Government of the United Kingdom of Great Britain and Northern Ireland - Canada.ca
You may find that income arising in the UK is taxable in Canada - or not. It is useful to know which.
HTH
I think you need to declare your full income (for the Canadian tax year) but pro-rata it showing amount received before and after arrival.
And indeed there is a section for declaring global income and the same applies, declare it for the calendar year and pro-rata accordingly. You shouldn't be taxed on anything before you arrived in Canada.
As a general rule, only send what is asked for, if CRA want more (evidence) they will ask for it.
I employed an accountant for my first return but it was hard to find one who is familiar with UK and Canadian tax. On reflection, it was poor value - especially when I noticed (too late) that the small print said they would not deal with any follow-up questions unless I paid more money!
Also look at the Tax Treaty between Canada and the UK - Convention Between the Government of Canada and the Government of the United Kingdom of Great Britain and Northern Ireland - Canada.ca
You may find that income arising in the UK is taxable in Canada - or not. It is useful to know which.
HTH
