I tried posting this in the UK section. But maybe it more relevant here.

Some brief background:- I moved back to the UK in December 2011 and did some freelance Graphic Design / Art direction work with a company I used to work for in Moncton Canada in 2012 from here in the UK. I have registered myself as self employed with the HMRC.

My question is I was going to be taxing my earnings for the 2012 period in the UK but I was sent my t4 from Canada today for that period as well. I know it's tax time in Canada right now and they normally do that anyway. Do I just ignore the T4 and continue as I'm doing already?

I just want to make sure I'm not going to upset Revenue Canada by doing that. I haven't made my mind up yet which side of the Atlantic I want to be on. So I dont want to cut all ties with Canada just yet. I'm presuming if I went back to Canada I would just inform them that the 2012 tax period was taxed in the uk?

Jonboye would be the person to answer, but my understanding from a conversation I had with Service Canada the other day would be that if you earned it here, they obviously want you to pay tax on it here. Even if that's not legally the case, it might save headaches if you come back in the future?

Thanks Dashie. I just want to make sure I'm doing everything properly while I'm residing in the UK without cutting my ties to Canada while I make up my mind about where I'm living. Hopefully Jonboye can give me some advice.

Been on the phone to Revenue Canada twice today. My head is spinning. One person said that I need to Determine my Residency Status of Canada and then file my taxes in Canada. The other person said that it's up to me if I file my taxes in Canada or the UK, there is no law saying I have to file them in Canada. I then spoke to the HMRC and they said that all worldwide income is taxable in the uk if you are a current resident of the UK. They do have a credit system in place with Canada so if I file in Canada I won't have to pay taxes twice on the 2012 income.

I mean I still have my bank account open in Canada but really I have no other ties to the country. Other than my PR card.

If anyone has any experience with this kind of thing and could give some advice it would be great.

It is wherever you are deemed tax resident in the year you have to file tax rutrns, it is not a choice you make. If you have a T4, you have already paid CPP, EI and tax on earnings. There is a reciprocal tax agreement in place between Canada and the UK. When you file, if taxes in the UK would have been higher than Canada, you pay the difference, you'll need your T4 to prove what you paid.

http://www.cra-arc.gc.ca/tx/nnrsdnts...sdncy-eng.html

I forgot to amend my previous post, its a t4A. i cant believe i didnt notice that. No deductions have been taken out. I was working freelance project to project whilst based in the uk.

So I'm presuming that because I'm currently a tax resident of the uk I can file in the uk?

Colloquially known as a T4eh

So it is not employment income. From the infomration you have provided you were resident in the UK, not Canada, for the whole of 2012. Therefore you do not need to file a Canadian tax return unless you want to remian tax-resident in Canada for some reason.

On your 2011 return you should have marked that you ceased to be a Canadian tax-resident in December 2011. If you didn't it may cause some inconvenience if you ever go back to Canada to live. Make sure you document your residence status in the UK.

You ex-employer shoud have filed an NR4 not a T4A but, hey ho, that is their problem.

Would there be any advantage to remain tax-resident in Canada?

Yes I think it was marked on my 2011 return that I ceased to be a Canadian tax-resident in December 2011 and was moving back to the uk.

Thanks JonboyE for your help, that's just the information I was after.

When you cease to be tax-resident in Canada you are deemed to have disposed of your capital assets. Any unrealized capital gain is caputured and taxed. (There are a number of exceptions we can go into if necessary.) Some people who are going overseas for a few years and expect to return may prefer to remian tax-resident in the CRA's eyes to avoid crystalizing these gains.

Everything's good. I'm going to proceed as I was planning and file my taxes in the UK for the 2012 period. All I need to do now is to work out what side of the Atlantic i want to be on and everything will be good.

Thanks for all your help JonboyE. Cheers!