Former Lancastrian

Calling the CRA call centre/help line and speaking to an agent and expecting that agent to give you a decision in writing is highly unlikely. Yes they will give you a decision in writing or as per those links as supplied where you need to register.
Perhaps TRC can call CRA and confirm that the person they spoke to on the phone is willing to give them the answer in writing signed by them.

TRC

Thanks for the replies. Maybe I should just register, I was getting a bit confused when I had to set myself as an employee.

To clarify 2 different people at the CRA support call centre and 2 different people at the gst help centre have said I don't need to register. I just want the most hassel free solution.

JonboyE

I am confused now. A few posts ago you said you were freelancing so why would you need to set yourself up as an employee?

And to clarify, when you freelance for the UK company do you do this in the UK or in Canada?

Were you calling 1-800-959-5525? If so, there is something you have told them that you have not told us. I occasionally come across people on this number who do not know the answer to my questions but they always transfer me to someone who does. I find it hard to believe four different people have given you such bad advice.

TRC

I meant incorporating so I could pay myself as previously.

Yeah that's the number I called, then I believe I called 1-800-595-8782.

JonboyE

I don't recognize that second number.

I still do not get the GST registration advice you received. Unless, that is, you are talking of a UK corporation and not a Canadian one.

If you are incorporating in Canada it is a different kettle of fish. You will be assigned a business number when you incorporate. As a minimum a corporation must have an RC account. You can distribute corporate profits by way of dividend or payroll. If payroll you must also open an payroll RP account. If you pay a dividend your will also need an information return RZ account but the CRA will open this when you file the first T5 slip. A Canadian corporation has the same GST obligations as an individual.

TRC

That sounds too complex for what I need. I get paid each month by a UK company as a freelancer into my Canadian account. The UK company has no ties to Canada at all.

JonboyE

I agree. I don't see any benefit to incorporating. It will be much more bother than it is worth.

I still think you should register for GST when you get to $30,000 p.a. of revenue. But the consequences of not doing so are not too severe if you only have zero rates sales. Penalties are based on the tax you should have collected and reported.

TRC

OK perfect, so for now I'm good to just get paid by the UK company, the once I hit 30k register for gst.

I'll be seeing an accountant soon too so I'll see what they say.

Again thanks for your help, appreciated!

Shirtback

i get paid as a freelancer in Canada too, by overseas clients with no connection to Canada. I believe Siouxie might do as well (I.e. She knows what she's talking about).

I'm registered as per the advice and links provided upthread. I'm not incorporated. I don't often earn over the limit through freelance jobs (I earn part-time salary too), but registered anyway, years ago, JIC.

I think you might be complicating things unnecessarily. Unless you're earning megabucks, why would you be looking at incorporation?

TRC

After deciding to go ahead and register as a business with a GST account, I called up the CRA to register. After going through the process, the agent asked where I provide my services. I told them the UK. They told me I did not need to register for a GST account as it is exempt.

Whats everyones thoughts on this?

Siouxie

I would suggest you wait until you reach $30,000 before you register - and I would suggest registering as otherwise there may be implications of you being an employee rather than a freelance, self employed person. You may end up with Canadian clients, after all.

Providing service to companies outside of Canada isn't exempt, it is "0" rated.

TRC

Ah OK, Should I still register as a business now or wait till I hit the $30k?

JonboyE

When you are doing the work look at the floor. Is it in Canada? If so, you are providing services in Canada even if the client is in the UK. You will need to register your GST account when your revenues reach $30,000 pa.

If the floor is in the UK you are not providing services in Canada so do not need to register for GST.

TRC

I have told the CRA this 5 times now to 5 different people.

Siouxie

Register as a business now - sole proprietor

Business name registration information (Ontario) - Canada Business Network

Register for GST when you hit $30k.

If you look at CRA's website under "Exempt" you will see that it's very specific and does not include overseas service provision.
http://www.cra-arc.gc.ca/tx/bsnss/tp...ptgds-eng.html

If you look at CRA's website under "Exports" you will see that the export of services is zero rated.
http://www.cra-arc.gc.ca/tx/bsnss/tp...srvcs-eng.html

You may want to look at CRA's website under "Electronic Commerce"
http://www.cra-arc.gc.ca/E/pub/gm/b-090/b-090-e.html

and specifically: http://www.cra-arc.gc.ca/E/pub/gm/b-....html#P35_3681