Working remotely for UK company while applying for PR in Ontario
#1
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Joined: Jun 2021
Posts: 1
Working remotely for UK company while applying for PR in Ontario
Hi everyone
hope someone will be able to help.
I landed in Ottawa as a spouse to a Canadian in January. I am employed by a UK company and currently working remotely from ON. I perform services in the UK. I am a PAYE and receive my salary in a UK bank account. I have recently applied for my PR and waiting for an open work permit. Comes July I have would have stayed here for 183 days. However I was reading I may be considered a deemed non resident due to the fact I'm earning my money in the UK and being employed by a Canadian company.
Could anyone advise on whether I will incur in tax obligations here in Canada by being employed by a UK company and performing services in the UK not earning any money in Canada but by simply working remotely from here? Thank you
hope someone will be able to help.
I landed in Ottawa as a spouse to a Canadian in January. I am employed by a UK company and currently working remotely from ON. I perform services in the UK. I am a PAYE and receive my salary in a UK bank account. I have recently applied for my PR and waiting for an open work permit. Comes July I have would have stayed here for 183 days. However I was reading I may be considered a deemed non resident due to the fact I'm earning my money in the UK and being employed by a Canadian company.
Could anyone advise on whether I will incur in tax obligations here in Canada by being employed by a UK company and performing services in the UK not earning any money in Canada but by simply working remotely from here? Thank you
#2
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Joined: Oct 2017
Posts: 16
Re: Working remotely for UK company while applying for PR in Ontario
Hi, the short answer is yes! You will be liable for taxes on your worldwide income in Canada from the date of entry once you are resident here (i.e. your partner and home are in Canada). The longer answer is more detailed and involved, so you may want to seek tax advice!
#3
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Location: SW Ontario
Posts: 19,879
Re: Working remotely for UK company while applying for PR in Ontario
#4
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Joined: Nov 2020
Posts: 66
Re: Working remotely for UK company while applying for PR in Ontario
From what you have stated, you are a tax resident.
You are earning money in Canada, by being here and working. It matters not where the source of that income is derived (so long as it is legal).
You'll need a HMRC certificate of tax paid from the UK employer. This will be reported as income on your tax return in Canada and a credit for UK tax paid is deducted. If you would have paid more tax in Canada, you'll get a bill for the difference. If you would have paid less in Canada, no bill from CRA (no refund either).
Not possible to give personal advice on a forum, just generalised.
In your circumstances, I would be seeking out an accountant (and avoiding tax preparer businesses).
Tax year ends Dec 31. taxes should be filed by April 30. If you have self employed income, June 15.
You are earning money in Canada, by being here and working. It matters not where the source of that income is derived (so long as it is legal).
You'll need a HMRC certificate of tax paid from the UK employer. This will be reported as income on your tax return in Canada and a credit for UK tax paid is deducted. If you would have paid more tax in Canada, you'll get a bill for the difference. If you would have paid less in Canada, no bill from CRA (no refund either).
Not possible to give personal advice on a forum, just generalised.
In your circumstances, I would be seeking out an accountant (and avoiding tax preparer businesses).
Tax year ends Dec 31. taxes should be filed by April 30. If you have self employed income, June 15.
#5
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Joined: Apr 2009
Location: SW Ontario
Posts: 19,879
Re: Working remotely for UK company while applying for PR in Ontario
Hi everyone
hope someone will be able to help.
I landed in Ottawa as a spouse to a Canadian in January. I am employed by a UK company and currently working remotely from ON. I perform services in the UK. I am a PAYE and receive my salary in a UK bank account. I have recently applied for my PR and waiting for an open work permit. Comes July I have would have stayed here for 183 days. However I was reading I may be considered a deemed non resident due to the fact I'm earning my money in the UK and being employed by a Canadian company.
Could anyone advise on whether I will incur in tax obligations here in Canada by being employed by a UK company and performing services in the UK not earning any money in Canada but by simply working remotely from here? Thank you
hope someone will be able to help.
I landed in Ottawa as a spouse to a Canadian in January. I am employed by a UK company and currently working remotely from ON. I perform services in the UK. I am a PAYE and receive my salary in a UK bank account. I have recently applied for my PR and waiting for an open work permit. Comes July I have would have stayed here for 183 days. However I was reading I may be considered a deemed non resident due to the fact I'm earning my money in the UK and being employed by a Canadian company.
Could anyone advise on whether I will incur in tax obligations here in Canada by being employed by a UK company and performing services in the UK not earning any money in Canada but by simply working remotely from here? Thank you
This may be of use to you.... the official word.
Under Canada's tax system, your income tax obligations to Canada are based on your residency status. You need to know your residency status before you can know what your tax responsibilities and filing requirements to Canada are.
The most important thing to consider when determining your residency status in Canada for income tax purposes is whether or not you maintain, or you establish, residential ties with Canada.
Significant residential ties with Canada include:
Significant residential ties with Canada include:
- a home in Canada
- a spouse or common-law partner in Canada
- dependants in Canada
Last edited by Siouxie; Jul 1st 2021 at 2:33 pm.
#6
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Joined: Nov 2020
Posts: 66
Re: Working remotely for UK company while applying for PR in Ontario
I have been asked by admin to 'stop touting for business', my apologies, y'all will have to get your blueberries or raspberries elsewhere!
#7
Re: Working remotely for UK company while applying for PR in Ontario
If in doubt, contact me, Jerseygirl (fellow Canada mod) or Bob (admin), and we can let you know if there's an issue.
Your posts are just fine, so as you were………
#8
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Joined: Sep 2014
Posts: 233
Re: Working remotely for UK company while applying for PR in Ontario
#9
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Joined: Nov 2020
Posts: 66
Re: Working remotely for UK company while applying for PR in Ontario
This is the definitive authority
https://www.canada.ca/en/revenue-age...cy-status.html
https://www.canada.ca/en/revenue-age...cy-status.html
#10
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Joined: Apr 2009
Location: SW Ontario
Posts: 19,879
Re: Working remotely for UK company while applying for PR in Ontario
This is the definitive authority
https://www.canada.ca/en/revenue-age...cy-status.html
https://www.canada.ca/en/revenue-age...cy-status.html
https://www.canada.ca/en/revenue-age...cy-status.html
This may be of use to you.... the official word.
You have lived here for more than 183 days and have significant residential ties to Canada..
You mentioned working for a Canadian company, in the UK - do they have a Canada Head Office,? and are you undertaking any work for any company or project in Canada?
This may be of use to you.... the official word.
You have lived here for more than 183 days and have significant residential ties to Canada..
You mentioned working for a Canadian company, in the UK - do they have a Canada Head Office,? and are you undertaking any work for any company or project in Canada?
#11
Forum Regular
Joined: Nov 2020
Posts: 66
Re: Working remotely for UK company while applying for PR in Ontario
As detailed in my post upthread Working remotely for UK company while applying for PR in Ontario