Tax return

Old Feb 13th 2020, 7:46 pm
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Default Tax return

Hi everyone, we moved to Ontario last year and this is the first time doing our tax return. I have had a look at the forum articles. I was wondering if anyone can share any nugget of information, anything you wish you had known when you did your first tax return?

Is it easy enough to do yourself? We have rental income in the UK and some general income in the UK as well (pension and some employment salary still). I believe that we have to pay tax on the rent in the UK so we don't have to pay it in Canada. We also should not pay tax on the pension and other income in the UK but pay it in Canada. Is that about right? Also I seem to remember I've read somewhere that you can claim moving expenses against what you need to pay tax on?

Thanks in advance.
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Old Feb 13th 2020, 7:53 pm
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Default Re: Tax return

Originally Posted by Caro90 View Post
Hi everyone, we moved to Ontario last year and this is the first time doing our tax return. I have had a look at the forum articles. I was wondering if anyone can share any nugget of information, anything you wish you had known when you did your first tax return?

Is it easy enough to do yourself? We have rental income in the UK and some general income in the UK as well (pension and some employment salary still). I believe that we have to pay tax on the rent in the UK so we don't have to pay it in Canada. We also should not pay tax on the pension and other income in the UK but pay it in Canada. Is that about right? Also I seem to remember I've read somewhere that you can claim moving expenses against what you need to pay tax on?

Thanks in advance.
My advice would be to go to a proper Canadian tax specialist (ie not a simple tax filer like HR Block). I managed to get pension splitting with my wife which I would not have thought about. I used to do my own returns in the UK using TaxCalc, but I personally would not here in Canada (although many do I know).
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Old Feb 13th 2020, 8:03 pm
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Default Re: Tax return

Originally Posted by Hurlabrick View Post
My advice would be to go to a proper Canadian tax specialist (ie not a simple tax filer like HR Block). I managed to get pension splitting with my wife which I would not have thought about. I used to do my own returns in the UK using TaxCalc, but I personally would not here in Canada (although many do I know).
Thanks. What's the best way of finding a good one? Are they expensive?
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Old Feb 13th 2020, 8:22 pm
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Default Re: Tax return

Originally Posted by Caro90 View Post
Thanks. What's the best way of finding a good one? Are they expensive?
Not cheap! Between $400 to $800 per person for us so far. I asked for some names from my bankers at RBC. I make sure they are CPA qualified Chartered Professional Accountant
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Old Feb 13th 2020, 9:08 pm
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Default Re: Tax return

Originally Posted by Caro90 View Post
Hi everyone, we moved to Ontario last year and this is the first time doing our tax return. I have had a look at the forum articles. I was wondering if anyone can share any nugget of information, anything you wish you had known when you did your first tax return?

Is it easy enough to do yourself? We have rental income in the UK and some general income in the UK as well (pension and some employment salary still). I believe that we have to pay tax on the rent in the UK so we don't have to pay it in Canada. We also should not pay tax on the pension and other income in the UK but pay it in Canada. Is that about right? Also I seem to remember I've read somewhere that you can claim moving expenses against what you need to pay tax on?

Thanks in advance.

I agree with Hurlabrick...go to an accountancy firm I have a rental property in the UK too, and without the knowledge of a tax specialist there are too many pitfalls that if you miss you could get a heavy fine from the CRA.

You will pay tax on your GLOBAL income to the CRA, as you are a Canadian tax resident (I fell into that trap too thinking I would pay the HMRC on UK income) so you will need to let the HMRC know that you are a Canadian tax resident.....I

I have to file a UK tax return every year even though I am not a UK tax resident, and owe zero to the HMRC! something that I really don't understand, so its best to get a specialist invloved on both sides of the pond ... as a standard Canadian tax return accountant will know nothing about HMRC tax laws - its very confusing....plus I glaze over when it comes to stiff like that!

You will still have to prepare your UK rental incoming and outgoing figures to submit to your accountant, but they cover everything, and also will let you know what you can and cant used to write off against tax.... I pay my Canadian accountant around $300, but some years more if my circumstances are different, and they do more than the standard tax return, and I pay and the UK accountant one 50pounds.

I find the whole thing a minefield if you still have ties to the UK via income.
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Old Feb 13th 2020, 9:14 pm
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Default Re: Tax return

I dont have UK rental income, but I do still have a UK Income Drawdown which I am taking a small pension from. I registered myself as leaving the UK with HMRC and had the Canada / UK dual taxation agreement form from HMRC stamped by CRA and lodged this with HMRC. Now my IDD provider has me as an NT tax code, so my UK IDD withdrawals are free of UK tax. Now I just report these to and am taxed by CRA.
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Old Feb 13th 2020, 9:30 pm
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Default Re: Tax return

Originally Posted by Hurlabrick View Post
Not cheap! Between $400 to $800 per person for us so far. I asked for some names from my bankers at RBC. I make sure they are CPA qualified Chartered Professional Accountant
Ouch. Thank you!
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Old Feb 13th 2020, 9:33 pm
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Default Re: Tax return

Originally Posted by Paul_Shepherd View Post
I agree with Hurlabrick...go to an accountancy firm I have a rental property in the UK too, and without the knowledge of a tax specialist there are too many pitfalls that if you miss you could get a heavy fine from the CRA.

You will pay tax on your GLOBAL income to the CRA, as you are a Canadian tax resident (I fell into that trap too thinking I would pay the HMRC on UK income) so you will need to let the HMRC know that you are a Canadian tax resident.....I

I have to file a UK tax return every year even though I am not a UK tax resident, and owe zero to the HMRC! something that I really don't understand, so its best to get a specialist invloved on both sides of the pond ... as a standard Canadian tax return accountant will know nothing about HMRC tax laws - its very confusing....plus I glaze over when it comes to stiff like that!

You will still have to prepare your UK rental incoming and outgoing figures to submit to your accountant, but they cover everything, and also will let you know what you can and cant used to write off against tax.... I pay my Canadian accountant around $300, but some years more if my circumstances are different, and they do more than the standard tax return, and I pay and the UK accountant one 50pounds.

I find the whole thing a minefield if you still have ties to the UK via income.
Thanks. Yeah I think we have let the HMRC know we've left Canada but I'll double check. Great, thanks for that.
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Old Feb 13th 2020, 9:36 pm
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Default Re: Tax return

Originally Posted by Hurlabrick View Post
I dont have UK rental income, but I do still have a UK Income Drawdown which I am taking a small pension from. I registered myself as leaving the UK with HMRC and had the Canada / UK dual taxation agreement form from HMRC stamped by CRA and lodged this with HMRC. Now my IDD provider has me as an NT tax code, so my UK IDD withdrawals are free of UK tax. Now I just report these to and am taxed by CRA.
Yeah so my husband is getting a monthly sum from his private pension he had with his insurer. He told HMRC he's left the UK and I don't think he pays tax on it now.

I swear they make it this complicated so people can charge a load of money to do it for us!
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Old Feb 13th 2020, 10:18 pm
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Default Re: Tax return

Originally Posted by Caro90 View Post
Yeah so my husband is getting a monthly sum from his private pension he had with his insurer. He told HMRC he's left the UK and I don't think he pays tax on it now.
I would check that if i were you. I used to work in UK Life and Pensions, and the pension provider will do exactly what HMRC tell them. HMRC would have to issue an NT tax code direct to your pension provider for them not to deduct tax at source.
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Old Feb 13th 2020, 11:17 pm
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Default Re: Tax return

Originally Posted by Hurlabrick View Post
I would check that if i were you. I used to work in UK Life and Pensions, and the pension provider will do exactly what HMRC tell them. HMRC would have to issue an NT tax code direct to your pension provider for them not to deduct tax at source.
Ok I'll tell him to check. Thank you.
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Old Feb 13th 2020, 11:45 pm
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Default Re: Tax return

UK pension. Canadian rental income. Pension splitting. Adjustments to be made due to death of spouse during tax year. Selling of rental property during tax year.

On-line SimpleTax or TurboTax - all free - coped with it all.

If you're a bit wary, sign up (it's free) and just go through one. TurboTax will badger/prompt you to upgrade but even that's only about $20 depending what you upgrade to.

If you do upgrade, you only pay on completion anyway. If you use SimpleTax or one of the other free ones, you can even take it as far as the result and see what you think. If you're not happy about it, just keep the result and compare it to the result you pay the professional for.

Then you can decide if it's worth paying next time.
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Old Feb 14th 2020, 2:16 am
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Default Re: Tax return

Originally Posted by BristolUK View Post
UK pension. Canadian rental income. Pension splitting. Adjustments to be made due to death of spouse during tax year. Selling of rental property during tax year.

On-line SimpleTax or TurboTax - all free - coped with it all.

If you're a bit wary, sign up (it's free) and just go through one. TurboTax will badger/prompt you to upgrade but even that's only about $20 depending what you upgrade to.

If you do upgrade, you only pay on completion anyway. If you use SimpleTax or one of the other free ones, you can even take it as far as the result and see what you think. If you're not happy about it, just keep the result and compare it to the result you pay the professional for.

Then you can decide if it's worth paying next time.
​​​​​​
Great idea. Thank you!
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Old Feb 14th 2020, 3:00 am
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Default Re: Tax return

Originally Posted by BristolUK View Post
UK pension. Canadian rental income. Pension splitting. Adjustments to be made due to death of spouse during tax year. Selling of rental property during tax year.

On-line SimpleTax or TurboTax - all free - coped with it all.

If you're a bit wary, sign up (it's free) and just go through one. TurboTax will badger/prompt you to upgrade but even that's only about $20 depending what you upgrade to.

If you do upgrade, you only pay on completion anyway. If you use SimpleTax or one of the other free ones, you can even take it as far as the result and see what you think. If you're not happy about it, just keep the result and compare it to the result you pay the professional for.

Then you can decide if it's worth paying next time.
Good advice. We are similar to you in having rental property in UK, pensions etc. We use Turbotax every year although we did use an adviser the first year but he used TT.

My advice is to set up a spreadsheet showing your income, expenses, etc. We update ours a couple of times a year, then have all the figures ready to put in the tax return when we get our T forms through. Turbotax guides you through the steps and makes suggestions as to the optimum way of doing things eg one year suggested that I claim for my husband’s eye surgery as that was more tax efficient. Make sure you use the annual Bank of Canada exchange rates for your UK income.
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Old Feb 14th 2020, 4:23 am
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Default Re: Tax return

Originally Posted by Twitcher1958 View Post
Good advice. We are similar to you in having rental property in UK, pensions etc. We use Turbotax every year although we did use an adviser the first year but he used TT.

My advice is to set up a spreadsheet showing your income, expenses, etc. We update ours a couple of times a year, then have all the figures ready to put in the tax return when we get our T forms through. Turbotax guides you through the steps and makes suggestions as to the optimum way of doing things eg one year suggested that I claim for my husband’s eye surgery as that was more tax efficient. Make sure you use the annual Bank of Canada exchange rates for your UK income.
Thank you!
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