Tax related questions
Jun 1st 2012, 8:29 am
#1
Account Closed
Thread Starter
Joined: May 2012
Posts: 21
Tax related questions
Apologies in advance for questions may already be asked.
So finished my job yesterday and husband will finish his off today.
Before leaving to start a new job in Canada, tax wise do we need to send anything to Inland Revenue?
Husband goes for a new job. As for me I have to look for job once I get to Canada. Would this make any difference in terms of tax documents we both need to deal with?
Would appreciate if you could share your knowledge please.
And happy jubliee! I am so looking forward to this weekend. Pimms anyone?
Peddie x
So finished my job yesterday and husband will finish his off today.
Before leaving to start a new job in Canada, tax wise do we need to send anything to Inland Revenue?
Husband goes for a new job. As for me I have to look for job once I get to Canada. Would this make any difference in terms of tax documents we both need to deal with?
Would appreciate if you could share your knowledge please.
And happy jubliee! I am so looking forward to this weekend. Pimms anyone?
Peddie x
Jun 1st 2012, 3:39 pm
#2
Binned by Muderators
Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
Jun 1st 2012, 5:27 pm
#3
Grumpy Know-it-all
Joined: Jul 2010
Location: Calgary, Alberta
Posts: 8,928
Re: Tax related questions
Yeah P85, also an R105 with your bank so they stop withholding income tax.
There is a newcomer's guide on the CRA website, basically some things have to be pro-rated the first year you live in Canada on your initial tax return (unless you move your tax home on January 1st). If you're married you can file jointly with your spouse.
http://www.cra-arc.gc.ca/tx/nnrsdnts...nwcmr-eng.html
I suggest actually taking the time to read up on it, people seem to trust TurboTax or whatever to work it all out properly but personally I don't think it's too wise to trust a piece of software.
Taxes in Canada are more of a hands-on thing than in the UK which has the PAYE system. You fill in a TD1 when you start work which is similar to whatever the UK equivalent is (I've forgotten) but the payroll withholding is much cruder in Canada, you will usually owe or get back a fair bit when you do your tax return.
It's worth taking the time to understand it, so you can understand the best tax strategies, for example with RRSPs.
It's your responsibility to pay tax at tax time, for example you'll get a T5 from the bank, you have to pay income tax on the bank interest, it's not like the UK where it is done automatically.
Also I recommend you make voluntary NI contributions in the UK, it doesn't cost much if you qualify for Class 2 (i.e. employed), read HMRC NI38 which goes into painful detail but really the application form at the back is the relevant bit: http://www.hmrc.gov.uk/pdfs/nico/ni38.pdf
Once you have 30 years worth of contributions you qualify for your UK state pension, however under the social security agreement with the UK there are no cost of living adjustments if you reside in Canada.
There is a newcomer's guide on the CRA website, basically some things have to be pro-rated the first year you live in Canada on your initial tax return (unless you move your tax home on January 1st). If you're married you can file jointly with your spouse.
http://www.cra-arc.gc.ca/tx/nnrsdnts...nwcmr-eng.html
I suggest actually taking the time to read up on it, people seem to trust TurboTax or whatever to work it all out properly but personally I don't think it's too wise to trust a piece of software.
Taxes in Canada are more of a hands-on thing than in the UK which has the PAYE system. You fill in a TD1 when you start work which is similar to whatever the UK equivalent is (I've forgotten) but the payroll withholding is much cruder in Canada, you will usually owe or get back a fair bit when you do your tax return.
It's worth taking the time to understand it, so you can understand the best tax strategies, for example with RRSPs.
It's your responsibility to pay tax at tax time, for example you'll get a T5 from the bank, you have to pay income tax on the bank interest, it's not like the UK where it is done automatically.
Also I recommend you make voluntary NI contributions in the UK, it doesn't cost much if you qualify for Class 2 (i.e. employed), read HMRC NI38 which goes into painful detail but really the application form at the back is the relevant bit: http://www.hmrc.gov.uk/pdfs/nico/ni38.pdf
Once you have 30 years worth of contributions you qualify for your UK state pension, however under the social security agreement with the UK there are no cost of living adjustments if you reside in Canada.
Jun 1st 2012, 6:26 pm
#4
Account Closed
Thread Starter
Joined: May 2012
Posts: 21
Re: Tax related questions
Thanks for your reply 
Jun 1st 2012, 10:42 pm
#5
Slightly Canadian
Joined: Jul 2005
Location: St. John's, Newfoundland
Posts: 10,129
Jun 2nd 2012, 10:52 am
#6
Account Closed
Thread Starter
Joined: May 2012
Posts: 21
Re: Tax related questions
Aww thank you v much. I'll defo keep in touch when the time comes if thats OK. I just go through my checklist - kinda in reverse right? 
Jun 2nd 2012, 3:02 pm
#7
x 0 x
Joined: Mar 2008
Location: Ottawa
Posts: 909
Re: Tax related questions
In my opinion the tax filling part is not that difficult, it looks it but is not once you follow the booklet. The first year you must submit on paper and then following years can be done online via a tax app. I used a tax app to validate the figures on my paper forms, it found me an extra $100. there are FREE versions of tax apps out there which are approved by the CRA
