We landed in Canada in October 2010, got our PR done and SIN numbers. We have returned to the UK to settle our affairs and will be heading back out this summer.

My questions are,

1) Will we have to do a Canadian tax return even though we haven't moved there yet but have SIN numbers?

2) Will we have to pay tax in both Canada and UK on the jobs we currently have in the UK?

Thanks if you can help.

The quick answer is no. Your tax status will only change when you take up residency, I.e. Move to Canada.

Hi Bex1

There is a bilateral tax agreement ('Double Taxation Convention') between Canada and the UK meaning you get taxed on your world wide income in the country that you are a resident. This is applicable for most income.

http://www.hmrc.gov.uk/cnr/app_dtt.htm#3

When you leave the UK you should submit a non-resident tax declaration, form P85, which allows you to reclaim any tax paid in that tax year etc. See link:

http://www.hmrc.gov.uk/cnr/p85_p85s.htm

If you are renting out your house in the UK then there is a non-resident landlord form to fill in that enables you to be paid rent without deduction of tax.

http://www.hmrc.gov.uk/cnr/nr_landlords.htm

You would declare you income on your Canadian tax return.

JB