UK tax on CAD$ already taxed???
 

hi im trying to work out if hubby will be taxed ( and how we go about filling in forms etc) when he moves to canada and paypal's to uk earnings that he had been taxed on in Canada, to support us in the UK. surely he cant be taxed twice on the same earnings... or can he? this is blighty

also as he is leaving a month into new tax year in uk, how does he claim tax on earnings in uk already hacked away at by HMRC? i know there is a form but i cant for the life of me find.

Re: UK tax on CAD$ already taxed???
 

i cant answer your questions specifically but when I returned to the UK from a 1 year job in canada that covered 2 different uk tax years, I had to pay HMRC additional tax for income earned in canada. since the UK has a higher rate of tax, I had to pay the difference between the amount of tax i paid in canada and the total amount i would have paid if the money was earned in the UK (which was slightly higher).

Re: UK tax on CAD$ already taxed???
 

If your OH is emigrating then he needs to complete form P85 http://www.hmrc.gov.uk/cnr/p85.pdf.

However, if he is just working abroad he might remain tax-resident in the UK. With you staying in the UK it is not a clear-cut situation. However, transfers between him and you out of tax paid income are personal matters and are not taxable.

Re: UK tax on CAD$ already taxed???
 

The UK tax on the Canadian earnings can be avoided if the employee becomes non-resident for UK tax purposes. Otherwise, if UK tax residence is not broken, a credit can be claimed for the Canadian tax paid. If the employee is not a Self Assessment Tax Return filer every year, form P85 should be submitted to HM Revenue & Customs with form P45 to request the PAYE refund for the current year. This is assuming the employee is becoming non-resident.

Re: UK tax on CAD$ already taxed???
 

Yes he is emigrating Wth us following when we can afford it, PR application will be filed thru BC pnp (so it's expedited) in about a month. So as long as he is not a uk tax resident the tax paid in Canada is sufficient.