UK employer wants me to carry on working
#1
UK employer wants me to carry on working
Hi everyone
Here's my predicament - I have just given notice to my employer here in the UK and they have asked me to carry on working for them in Canada on a consultancy basis ie invoice them for the time I work. My query is: Do I have to set up a consultancy business in Canada? Can I be paid into a Canadian account in £. Would this count as income if I want a mortgage etc. Any help would be really appreciated.
Here's my predicament - I have just given notice to my employer here in the UK and they have asked me to carry on working for them in Canada on a consultancy basis ie invoice them for the time I work. My query is: Do I have to set up a consultancy business in Canada? Can I be paid into a Canadian account in £. Would this count as income if I want a mortgage etc. Any help would be really appreciated.
#2
Re: UK employer wants me to carry on working
You need to talk to that nice Mr Souvenir, 'cos thats what he does I believe.
I would think you would retain a UK bank account, get paid into there and then exchange (using HiFx, XE etc) into Canadian. As for tax issues etc you probably need to see an accountant.
I would think you would retain a UK bank account, get paid into there and then exchange (using HiFx, XE etc) into Canadian. As for tax issues etc you probably need to see an accountant.
#3
Immigration Consultant
Joined: Jun 2007
Location: Halifax, Nova Scotia
Posts: 2,144
Re: UK employer wants me to carry on working
Hi everyone
Here's my predicament - I have just given notice to my employer here in the UK and they have asked me to carry on working for them in Canada on a consultancy basis ie invoice them for the time I work. My query is: Do I have to set up a consultancy business in Canada? Can I be paid into a Canadian account in £. Would this count as income if I want a mortgage etc. Any help would be really appreciated.
Here's my predicament - I have just given notice to my employer here in the UK and they have asked me to carry on working for them in Canada on a consultancy basis ie invoice them for the time I work. My query is: Do I have to set up a consultancy business in Canada? Can I be paid into a Canadian account in £. Would this count as income if I want a mortgage etc. Any help would be really appreciated.
Getting a Sterling bank account at a Canadian bank is no problem. or you could just pay sterling cheques into a CAD acount and they would get converted as they go in.
#4
Banned
Joined: Aug 2007
Location: New Caledonia
Posts: 1,810
Re: UK employer wants me to carry on working
Assuming you are legally entitled to work in Canada, have a SIN # and Canada is your permanent home.
If choose to operate as a sole proprietor you don't need to set anything up. You can choose to register a name for your business with the provincial government. If you choose to use a business name other than your own name and not register it, you may get into problems. If someone else is already using the same or similar name or someone else registers the name after you start using it you may end up having to change business name. Registering is always a safer bet and it does not cost that much. If you are a to be corporation then you should speak to a lawyer & accountant.
This is a link to business services in Ontario
http://www.cbs.gov.on.ca/obc/english/4TFQ9B.htm
Other provinces have similar services.
CRA website for Self Employed
http://www.cra-arc.gc.ca/tax/busines...st/menu-e.html
Foreign cheques can be paid into any of the Canadian banks, at a better than cash rate. HSBC is as far as I know the only Canadian bank that has foreign currency accounts incl £.
Another FX source is Custom House Exchange, often better than bank rate. Based in Victoria, BC Custom House Exchange have an offices across Canada and in the UK
www.customhouseuk.co.uk
or
www.customhouse.com and click on the appropriate flag.
What counts toward a mortgage is up to the financial institution you talk to, it usually goes off your tax return if you are self employed. ING direct, seem to offer pretty good mortgage rates http://www.ingdirect.ca/en/
When you get here it would be worthwhile contacting an accountant for advice. Myers Norris Penny are a national firm www.mnp.ca as well as lots of local ones. Good idea to interview an accountant before deciding on one to see who can best help you and if you want to work with them and likewise them with you.
If choose to operate as a sole proprietor you don't need to set anything up. You can choose to register a name for your business with the provincial government. If you choose to use a business name other than your own name and not register it, you may get into problems. If someone else is already using the same or similar name or someone else registers the name after you start using it you may end up having to change business name. Registering is always a safer bet and it does not cost that much. If you are a to be corporation then you should speak to a lawyer & accountant.
This is a link to business services in Ontario
http://www.cbs.gov.on.ca/obc/english/4TFQ9B.htm
Other provinces have similar services.
CRA website for Self Employed
http://www.cra-arc.gc.ca/tax/busines...st/menu-e.html
Foreign cheques can be paid into any of the Canadian banks, at a better than cash rate. HSBC is as far as I know the only Canadian bank that has foreign currency accounts incl £.
Another FX source is Custom House Exchange, often better than bank rate. Based in Victoria, BC Custom House Exchange have an offices across Canada and in the UK
www.customhouseuk.co.uk
or
www.customhouse.com and click on the appropriate flag.
What counts toward a mortgage is up to the financial institution you talk to, it usually goes off your tax return if you are self employed. ING direct, seem to offer pretty good mortgage rates http://www.ingdirect.ca/en/
When you get here it would be worthwhile contacting an accountant for advice. Myers Norris Penny are a national firm www.mnp.ca as well as lots of local ones. Good idea to interview an accountant before deciding on one to see who can best help you and if you want to work with them and likewise them with you.
#5
Account Closed
Joined: Jan 2007
Posts: 494
Re: UK employer wants me to carry on working
Plus you could look at all the off-shore options - Google and you find that some of the major UK banks have International branches with great interest rates and pension options.
May be better to transfer all your money but if you have savings, then the rates are much better than Canadian banks offer.
May be better to transfer all your money but if you have savings, then the rates are much better than Canadian banks offer.
#6
Banned
Joined: Aug 2007
Location: New Caledonia
Posts: 1,810
Re: UK employer wants me to carry on working
Plus you could look at all the off-shore options - Google and you find that some of the major UK banks have International branches with great interest rates and pension options.
May be better to transfer all your money but if you have savings, then the rates are much better than Canadian banks offer.
May be better to transfer all your money but if you have savings, then the rates are much better than Canadian banks offer.
#8
Re: UK employer wants me to carry on working
Hi everyone
Here's my predicament - I have just given notice to my employer here in the UK and they have asked me to carry on working for them in Canada on a consultancy basis ie invoice them for the time I work. My query is: Do I have to set up a consultancy business in Canada? Can I be paid into a Canadian account in £. Would this count as income if I want a mortgage etc. Any help would be really appreciated.
Here's my predicament - I have just given notice to my employer here in the UK and they have asked me to carry on working for them in Canada on a consultancy basis ie invoice them for the time I work. My query is: Do I have to set up a consultancy business in Canada? Can I be paid into a Canadian account in £. Would this count as income if I want a mortgage etc. Any help would be really appreciated.
#9
Re: UK employer wants me to carry on working
Thank you so much - yes it is kind of nice that my employer wants to keep me working for them, but equally I am moving to Canada for a new start etc. Decisions, decisions.
#10
Re: UK employer wants me to carry on working
Depends on what you do and what you get paid in UK and would likely get paid in Canada, but earning a UK salary and converting into CAD$ at 2.20+ to the $ is likely to be much more financial advantageous! Even if you do it for a while whilst you get settled, check out the local job scene, network etc.
#11
Joined: Apr 2005
Posts: 9,606
Re: UK employer wants me to carry on working
Hi everyone
Here's my predicament - I have just given notice to my employer here in the UK and they have asked me to carry on working for them in Canada on a consultancy basis ie invoice them for the time I work. My query is: Do I have to set up a consultancy business in Canada? Can I be paid into a Canadian account in £. Would this count as income if I want a mortgage etc. Any help would be really appreciated.
Here's my predicament - I have just given notice to my employer here in the UK and they have asked me to carry on working for them in Canada on a consultancy basis ie invoice them for the time I work. My query is: Do I have to set up a consultancy business in Canada? Can I be paid into a Canadian account in £. Would this count as income if I want a mortgage etc. Any help would be really appreciated.
They later offered me a full-time position. As far as they are concerned I am an employee (salary, vacation, benefits etc). As far as my accountant here is concerned I am still self-employed. I'm not entirely convinced that I am but it was his idea, not mine. You would certainly be self-employed. You will have no tax/NI liability in the UK. The company won't be paying NI on you either, so factor that in to your negotiations. As you'd be an exporter, there would be no GST (VAT) to worry about.
The deductions available through self-employment are not to be sniffed at. I work from home in a spare bedroom that I have converted into an office. The office takes up X% of the total living space. I can therefore claim X% of things like insurance, hydro, internet, mortgage interest etc. Expenses such as travel, office equipment and hospitality can also be deducted. The really big deduction is mileage but I don't have a driving licence, so it might be a little hard to get away with that one.
As you wouldn't be getting a pay slip, no deductions would be made at source. The first year, at least, you would just wait until tax return time and pay a lump sum then. That may also happen the second year. After that the Canadian taxman will likely start asking for quarterly payments, based on the last return.
Having a home office does have implications. House insurance is one, particularly if clients visit. You must tell the insurer. If work-related people visit the house, it will be illegal to smoke in it.
That's all I can think of at the moment.
#12
Re: UK employer wants me to carry on working
Wow Souvenir Thank you so much.
My employer has just asked if I would now prefer to just carry on my employment contract. Same holiday entitlement etc. Which is great in one sense. But now I dont really understand about the tax aspect - this is getting very confusing - I would have a home office - no clients etc would visit - the work I do would be entirely by internet & phone between the USA & UK. My employer will pay my mobile phone bill each month.
My employer will pay me a daily rate (dont have specific contracted hours). I just send a time sheet at the end of each month. They will pay my wages directly into a bank account of my choice in £'s. This will be my canadian account. What I need to know now is: do they pay tax, NI for me in the UK or do I do this on my Canadian Tax return. Help!!!
My employer has just asked if I would now prefer to just carry on my employment contract. Same holiday entitlement etc. Which is great in one sense. But now I dont really understand about the tax aspect - this is getting very confusing - I would have a home office - no clients etc would visit - the work I do would be entirely by internet & phone between the USA & UK. My employer will pay my mobile phone bill each month.
My employer will pay me a daily rate (dont have specific contracted hours). I just send a time sheet at the end of each month. They will pay my wages directly into a bank account of my choice in £'s. This will be my canadian account. What I need to know now is: do they pay tax, NI for me in the UK or do I do this on my Canadian Tax return. Help!!!
#13
BE Enthusiast
Joined: Oct 2005
Location: Formerly Montreal now Oxfordshire, UK
Posts: 545
Re: UK employer wants me to carry on working
Hi
What a great piece of luck!!!
I earn sterling from my UK business and it makes total financial sense. If they are paying you a better than average salary in pounds that tranforms into an upper end salary in dollars that you would have to work years to achieve in Canada.
For me the only disadvantage is feting up at between 4am and 5.30 every morning. Especially in the winter
Jonathan
What a great piece of luck!!!
I earn sterling from my UK business and it makes total financial sense. If they are paying you a better than average salary in pounds that tranforms into an upper end salary in dollars that you would have to work years to achieve in Canada.
For me the only disadvantage is feting up at between 4am and 5.30 every morning. Especially in the winter
Jonathan
#14
Joined: Apr 2005
Posts: 9,606
Re: UK employer wants me to carry on working
Wow Souvenir Thank you so much.
My employer has just asked if I would now prefer to just carry on my employment contract. Same holiday entitlement etc. Which is great in one sense. But now I dont really understand about the tax aspect - this is getting very confusing - I would have a home office - no clients etc would visit - the work I do would be entirely by internet & phone between the USA & UK. My employer will pay my mobile phone bill each month.
My employer will pay me a daily rate (dont have specific contracted hours). I just send a time sheet at the end of each month. They will pay my wages directly into a bank account of my choice in £'s. This will be my canadian account. What I need to know now is: do they pay tax, NI for me in the UK or do I do this on my Canadian Tax return. Help!!!
My employer has just asked if I would now prefer to just carry on my employment contract. Same holiday entitlement etc. Which is great in one sense. But now I dont really understand about the tax aspect - this is getting very confusing - I would have a home office - no clients etc would visit - the work I do would be entirely by internet & phone between the USA & UK. My employer will pay my mobile phone bill each month.
My employer will pay me a daily rate (dont have specific contracted hours). I just send a time sheet at the end of each month. They will pay my wages directly into a bank account of my choice in £'s. This will be my canadian account. What I need to know now is: do they pay tax, NI for me in the UK or do I do this on my Canadian Tax return. Help!!!
In the absence of a strong suggestion that I am an employee (no deductions, no payslips, trouble remembering where head office is etc), my accountant takes the views that I am effectively self-employed. I didn't tell him about the paid vacation and benefits, or the contract.
I'm a bit confused by what you are suggesting. How can you be an employee, with benefits, if you are billing only for hours worked?