Working remotely for UK company in Canada
#1
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Joined: Aug 2016
Posts: 4
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
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
#3
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Joined: Aug 2016
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Re: Working remotely for UK company in Canada
Knew there would be one out there!
Thanks
Thanks
#4
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Joined: Jan 2016
Posts: 245
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.
#5
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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 ?
#7
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Re: Working remotely for UK company in Canada
#8
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
I'm sure JonBoy can explain it better than me.
S
#9
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Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
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.
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.
#10
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
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