Tax Advice
Nov 30th 2020, 9:35 am
#1
Forum Regular
Thread Starter
Joined: Jul 2020
Posts: 36
Tax Advice
Hi guys,
Does anyone know where I could get reliable professional tax advice from someone with knowledge of both UK and Canadian tax systems? Specifically it would be helpful for them to have good knowledge of the UK-Canada double taxation treaty.
I am going to be tax resident in Canada for just under two years from mid Feb but getting paid in the UK. Was planning to do a P85 to claim tax relief in the UK but saw on the HMRC site that you *may* not be able to claim full tax relief unless you get paid into a Canadian bank account - I was planning on getting paid into my UK account or transferwise and shifting it across myself with low fees. If I get paid directly into a canadian bank account I have no idea what fees will be involved in that given my employer will presumably be paying in £ and the Canadian banking system is extremely confusing to me.
Researching all of this has confused me so much I think I need professional advice as well as potentially for someone else to deal with my tax returns...
Any recommendations (or even advice) would be hugely appreciated.
Does anyone know where I could get reliable professional tax advice from someone with knowledge of both UK and Canadian tax systems? Specifically it would be helpful for them to have good knowledge of the UK-Canada double taxation treaty.
I am going to be tax resident in Canada for just under two years from mid Feb but getting paid in the UK. Was planning to do a P85 to claim tax relief in the UK but saw on the HMRC site that you *may* not be able to claim full tax relief unless you get paid into a Canadian bank account - I was planning on getting paid into my UK account or transferwise and shifting it across myself with low fees. If I get paid directly into a canadian bank account I have no idea what fees will be involved in that given my employer will presumably be paying in £ and the Canadian banking system is extremely confusing to me.
Researching all of this has confused me so much I think I need professional advice as well as potentially for someone else to deal with my tax returns...
Any recommendations (or even advice) would be hugely appreciated.
Nov 30th 2020, 12:57 pm
#2
BE Enthusiast
Joined: Dec 2010
Location: Whitby, Ontario
Posts: 730
Re: Tax Advice
Two comments - we filled in the P85, get pensions paid in the UK along with house rental, all into UK bank accounts, all fully declared to CRA and don’t pay tax in the UK.
Have you tried speaking to someone in HMRC? They can be surprisingly knowledgeable and helpful- on occasion - so could be worth a punt?
Have you tried speaking to someone in HMRC? They can be surprisingly knowledgeable and helpful- on occasion - so could be worth a punt?
Nov 30th 2020, 4:01 pm
#3
Banned
Joined: Apr 2009
Location: SW Ontario
Posts: 19,879
Re: Tax Advice
The issue that might arise is that you will be employed by a UK entity (University) and paid IN the UK, presumably they will be deducting your income tax and NI payments automatically. You are ordinarily resident in the UK and will be returning, a bit different to someone who is on a pension or has rental income. Snowy might be able to offer you some advice on this.
I found this article which might help. https://www.litrg.org.uk/tax-guides/...ad-temporarily
As to bank fees. - Transferwise transfers you will pay a £4.odd tranfer fee that is deducted from the funds being transferred, no incoming fee from the Canadian bank for this..if you make a bank to bank wire transfer then you will pay a transfer fee of around $17 incoming and around £25 from the UK bank. Bank accounts in Canada are charged for - unless you use one that has no branches (such as Tangerine).. Our wiki might be of use https://britishexpats.com/wiki/Banking-Canada
I found this article which might help. https://www.litrg.org.uk/tax-guides/...ad-temporarily
As to bank fees. - Transferwise transfers you will pay a £4.odd tranfer fee that is deducted from the funds being transferred, no incoming fee from the Canadian bank for this..if you make a bank to bank wire transfer then you will pay a transfer fee of around $17 incoming and around £25 from the UK bank. Bank accounts in Canada are charged for - unless you use one that has no branches (such as Tangerine).. Our wiki might be of use https://britishexpats.com/wiki/Banking-Canada
Last edited by Siouxie; Nov 30th 2020 at 4:06 pm.
Dec 5th 2020, 3:39 am
#4
BE Forum Addict
Joined: Jul 2010
Location: Scotland, just!
Posts: 2,053
Re: Tax Advice
Been using Lynch Accounting Ltd United Kingdom and North American Tax Services – Lynch Accounting Ltd since returning to UK and very happy with Kieran’s advice on UK and CDN tax matters. Good luck
Dec 17th 2020, 1:49 pm
#5
Forum Regular
Thread Starter
Joined: Jul 2020
Posts: 36
Re: Tax Advice
Thanks everyone!
Spoke to HMRC (this didn't even occur to me until it was suggested here
) and I'm feeling a bit more confident I won't totally mess things up if I do them myself. Part of my confusion stemmed from not realising that there were two levels of tax residency in the UK - residency and domicile. They basically said just do the P85 and if they do decide I'm not going to be taxed in the UK then it's fine to use a UK bank account if I have one - they will know not to tax me. However as people have advised me multiple times it's looking like I will be taxed in the UK because though I won't be a tax resident, the P85 will likely result in my domicile being designated as the UK - this point confused me until I realised the residency/domicile discrepancy because the rules are clear I won't be a tax resident.
Definitely going to keep a link to that website on my giant moving to canada spreadsheet though because I may not feel this confident forever.
Only thing I don't know now is what to do with the P85. They want a Canadian address but I likely won't have one until a minimum of 6 weeks after I arrive...
Spoke to HMRC (this didn't even occur to me until it was suggested here
) and I'm feeling a bit more confident I won't totally mess things up if I do them myself. Part of my confusion stemmed from not realising that there were two levels of tax residency in the UK - residency and domicile. They basically said just do the P85 and if they do decide I'm not going to be taxed in the UK then it's fine to use a UK bank account if I have one - they will know not to tax me. However as people have advised me multiple times it's looking like I will be taxed in the UK because though I won't be a tax resident, the P85 will likely result in my domicile being designated as the UK - this point confused me until I realised the residency/domicile discrepancy because the rules are clear I won't be a tax resident.Definitely going to keep a link to that website on my giant moving to canada spreadsheet though because I may not feel this confident forever.
Only thing I don't know now is what to do with the P85. They want a Canadian address but I likely won't have one until a minimum of 6 weeks after I arrive...
