Go Back  British Expats > Living & Moving Abroad > Canada
Reload this Page >

Working remotely for UK company in Canada

Working remotely for UK company in Canada

Old Aug 31st 2016, 3:59 pm
  #1  
Just Joined
Thread Starter
 
Joined: Aug 2016
Posts: 4
nick_wilkins is an unknown quantity at this point
Default Working remotely for UK company in Canada

Hey guys,

Apologies if there is already a thread for a similar question but I was unable to find it.

Basically I've recently moved to Canada on a ICE visa and have been offered a job from my former company in the UK to work remotely.

I'm getting some of the important information from the Canadian government website that I will need regarding taxes and it seems that the UK and Canada have a tax relief deal so I'll only have to pay tax in one place

But was just wondering if anyone here has done something similar before, and has some further information or good places to get some details from, and whether declaring myself as employed or self-employed is the best way to go as my company is fairly flexible in the way in which I am employed

Thanks in advance
nick_wilkins is offline  
Old Aug 31st 2016, 4:07 pm
  #2  
Assimilated Pauper
 
dbd33's Avatar
 
Joined: Mar 2005
Location: Ontario
Posts: 40,014
dbd33 has a reputation beyond reputedbd33 has a reputation beyond reputedbd33 has a reputation beyond reputedbd33 has a reputation beyond reputedbd33 has a reputation beyond reputedbd33 has a reputation beyond reputedbd33 has a reputation beyond reputedbd33 has a reputation beyond reputedbd33 has a reputation beyond reputedbd33 has a reputation beyond reputedbd33 has a reputation beyond repute
Default Re: Working remotely for UK company in Canada

http://britishexpats.com/forum/canad...st-vat-853733/
dbd33 is offline  
Old Aug 31st 2016, 4:10 pm
  #3  
Just Joined
Thread Starter
 
Joined: Aug 2016
Posts: 4
nick_wilkins is an unknown quantity at this point
Default Re: Working remotely for UK company in Canada

Knew there would be one out there!

Thanks
nick_wilkins is offline  
Old Sep 1st 2016, 8:37 am
  #4  
Forum Regular
 
Joined: Jan 2016
Posts: 245
PB65 has a reputation beyond reputePB65 has a reputation beyond reputePB65 has a reputation beyond reputePB65 has a reputation beyond reputePB65 has a reputation beyond reputePB65 has a reputation beyond reputePB65 has a reputation beyond reputePB65 has a reputation beyond reputePB65 has a reputation beyond reputePB65 has a reputation beyond reputePB65 has a reputation beyond repute
Default Re: Working remotely for UK company in Canada

So just to clarify you are in Canada on an IEC work permit, you want to work remotely for a UK company, paid and taxed assume by the UK company into a UK bank account. You will have no Canadian clients involved in the working arrangement so any work is offshore only and you will not be working on the side as were for any Canadian clients or job roles directly whilst in Canada ?

Last edited by PB65; Sep 1st 2016 at 8:40 am.
PB65 is offline  
Old Sep 6th 2016, 9:09 pm
  #5  
Just Joined
Thread Starter
 
Joined: Aug 2016
Posts: 4
nick_wilkins is an unknown quantity at this point
Default Re: Working remotely for UK company in Canada

Originally Posted by PB65
So just to clarify you are in Canada on an IEC work permit, you want to work remotely for a UK company, paid and taxed assume by the UK company into a UK bank account. You will have no Canadian clients involved in the working arrangement so any work is offshore only and you will not be working on the side as were for any Canadian clients or job roles directly whilst in Canada ?
Ye that is true and if I were to take this job then I more than likely wouldn't look into getting any Canadian clients
nick_wilkins is offline  
Old Sep 6th 2016, 9:13 pm
  #6  
Binned by Muderators
 
Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
JonboyE has a reputation beyond reputeJonboyE has a reputation beyond reputeJonboyE has a reputation beyond reputeJonboyE has a reputation beyond reputeJonboyE has a reputation beyond reputeJonboyE has a reputation beyond reputeJonboyE has a reputation beyond reputeJonboyE has a reputation beyond reputeJonboyE has a reputation beyond reputeJonboyE has a reputation beyond reputeJonboyE has a reputation beyond repute
Default Re: Working remotely for UK company in Canada

Originally Posted by nick_wilkins
Ye that is true and if I were to take this job then I more than likely wouldn't look into getting any Canadian clients
There is nothing to stop you serving Canadian clients as long as your IEC visa is valid.
JonboyE is offline  
Old Sep 9th 2016, 2:55 pm
  #7  
Just Joined
Thread Starter
 
Joined: Aug 2016
Posts: 4
nick_wilkins is an unknown quantity at this point
Default Re: Working remotely for UK company in Canada

Originally Posted by JonboyE
There is nothing to stop you serving Canadian clients as long as your IEC visa is valid.
Ok great, I think my main question is regarding paying tax, and can I just pay it in one country i.e. the UK and not have to worry about it in Canada?
nick_wilkins is offline  
Old Sep 9th 2016, 3:22 pm
  #8  
BE Forum Addict
 
Snowy560's Avatar
 
Joined: Dec 2012
Location: British Columbia
Posts: 3,260
Snowy560 has a reputation beyond reputeSnowy560 has a reputation beyond reputeSnowy560 has a reputation beyond reputeSnowy560 has a reputation beyond reputeSnowy560 has a reputation beyond reputeSnowy560 has a reputation beyond reputeSnowy560 has a reputation beyond reputeSnowy560 has a reputation beyond reputeSnowy560 has a reputation beyond reputeSnowy560 has a reputation beyond reputeSnowy560 has a reputation beyond repute
Default Re: Working remotely for UK company in Canada

I don't know what other people do, but I have a small amount of UK income as I teach and examine online. I declare my UK income on an HMRC tax return and I also complete a CRA tax return (declaring what I earnt and what tax if any I've already paid to HMRC). If you are resident in Canada, you have to file taxes regardless of what you may or may not have done elsewhere. It is not like living in the UK where most people don't have to file to HMRC.

I'm sure JonBoy can explain it better than me.

S
Snowy560 is offline  
Old Sep 9th 2016, 4:33 pm
  #9  
Binned by Muderators
 
Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
JonboyE has a reputation beyond reputeJonboyE has a reputation beyond reputeJonboyE has a reputation beyond reputeJonboyE has a reputation beyond reputeJonboyE has a reputation beyond reputeJonboyE has a reputation beyond reputeJonboyE has a reputation beyond reputeJonboyE has a reputation beyond reputeJonboyE has a reputation beyond reputeJonboyE has a reputation beyond reputeJonboyE has a reputation beyond repute
Default Re: Working remotely for UK company in Canada

It is really a question of where you are resident for tax purposes. If you are non-resident for tax purposes then you only need to report Canadian sourced income to the CRA. What your UK employer pays you is of no concern to Canadian tax authorities. If you are resident in Canada for tax purposes then what Snowy560 describes above is correct.

Under the old WHV of up to one year it was relatively easy to claim to be non-resident in Canada for tax purposes - especially if you arrived and left within one calendar year. If you are here for less than a year it is unlikely that your "personal and economic relations are closer" (to Canada than the UK) or that a place in Canada is your "habitual abode." That said, if a WHV holder was in Canada on December 31 the CRA would accept resident returns for the year then ended and the following year.

I am not sure if the CRA will accept someone here for two years to be non-resident. I do not do many tax returns for WHV holders these days so I don't have any experience of the CRA contesting the status of a holder. It might depend on circumstances we do not know about.

My thought, and it is not advice, is that as long as the OP is being taxed as a UK resident in the UK then HMRC considers them tax-resident in the UK. As they cannot be resident in both countries at the same time they will be deemed non-resident in Canada for tax purposes.
JonboyE is offline  
Old Sep 9th 2016, 4:41 pm
  #10  
BE Forum Addict
 
Snowy560's Avatar
 
Joined: Dec 2012
Location: British Columbia
Posts: 3,260
Snowy560 has a reputation beyond reputeSnowy560 has a reputation beyond reputeSnowy560 has a reputation beyond reputeSnowy560 has a reputation beyond reputeSnowy560 has a reputation beyond reputeSnowy560 has a reputation beyond reputeSnowy560 has a reputation beyond reputeSnowy560 has a reputation beyond reputeSnowy560 has a reputation beyond reputeSnowy560 has a reputation beyond reputeSnowy560 has a reputation beyond repute
Default Re: Working remotely for UK company in Canada

After I posted what I posted I researched these links with HMRC (mainly for myself) which may/may not be helpful:

https://www.gov.uk/tax-foreign-income/overview

I haven't read this one:

HM Revenue & Customs: Service unavailable

or looked that closely at this one recently:

https://www.gov.uk/tax-uk-income-live-abroad/overview

S
Snowy560 is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.