Hi, I'm a Canadian living in the UK for work at the moment but my employer (university) has offered to let me work from Canada over the next year until my contract ends. We'll then stay at home in Canada after this job ends. I'm wondering how taxes would work in Canada. I've found some threads that mentioned tax treaties but people are usually employed as a contractor and submitting invoices.

If I'll still be a full time employee at a UK university but working remotely in Canada, does this advice from Hurlabrick still apply?

"When you move to Canada for good, file a P85 with HMRC to declare that you have left the UK. Then in your first tax year in Canada, file your returns with CRA PLUS send in a 'double taxation agreement' form for CRA to stamp and sign to confirm you are now taxed in Canada. They send that back to you and you forward to HMRC. HMRC should then issue you an 'NT' tax code to you and your UK employer who will then stop deducting UK tax. HMRC will refund any tax they deducted while all this went on. You then declare any income from this contact as overseas income to CRA and are taxed in Canada (including the back income that had tax withheld by HMRC once they have refunded it)."

I posted something like this not too long ago as I am in a similar-ish situation (UK university moving to Canada for two years as part of a three year funded post-doc) and would prefer to pay tax in Canada while there for various reasons. Unfortunately I don't think I got a clear answer if I remember rightly, though to be fair I'm not sure I asked the question very clearly either...

I may be wrong but I'm sure I read that the UK employer would need to sign up with the Canadian tax authorities in order to pay the Canadian equivalent of NI? I'm sure someone more knowledgeable will be able to confirm/deny this.

The rule simply is ‘If you live in Canada you must declare/pay taxes here on your World Wide income’ if you are taxed in another country on income received there you will receive relief for that when you file your Canadian Tax return, providing you’ve reported said income to CRA.

OK makes sense, thanks!

I recommend working for them as a freelancer - as a self employed person (in Canada) workin from home, there are lots of tax benefits to doing so..