Working or Retiring
Nov 1st 2005 | 6:32 am
#46
Banned
Joined: Oct 2005
Posts: 400
Re: Working or Retiring
Originally Posted by Tiaribbon
Nope I think you are all wrong - Biiiink is definitely a thong girl like any other lady with a bit of class. 
Getting back to the original question; I am not retiring over here, I want to work the farm. I am not old and still want to do this horsey-lark for a few more years. My husband on the other hand is planning to retire early. One of his personal pension plans allows him access to it in April next year. He gets a lump sum and then an amount paid out each month. We will be declaring it in the UK and paying whatever has to be paid at source and then transferring the money here on some-sort of basis (probably when we start running out every now and then). When he finally gets his State Pension (a fair way off) I expect we will do the same not that it will be worth much, but hey he paid into it so we will take all that there is going!
Getting back to the original question; I am not retiring over here, I want to work the farm. I am not old and still want to do this horsey-lark for a few more years. My husband on the other hand is planning to retire early. One of his personal pension plans allows him access to it in April next year. He gets a lump sum and then an amount paid out each month. We will be declaring it in the UK and paying whatever has to be paid at source and then transferring the money here on some-sort of basis (probably when we start running out every now and then). When he finally gets his State Pension (a fair way off) I expect we will do the same not that it will be worth much, but hey he paid into it so we will take all that there is going!
Nov 1st 2005 | 9:14 am
#47
Guest
Posts: n/a
Re: Working or Retiring
Originally Posted by Tiaribbon
Oh yes; no problem so long as we declare it, I don't see that it makes a whole lot of difference which country you are taxed in. My understanding is that no monies can be taxed in Canada providing it has been taxed at source? Is this incorrect then?
It may be taxed overseas and then taxed again in Canada. It generally levels out to the same tax liability through deductions and credits in Canada - but that is not guaranteed as it depends on the rate of tax applied overseas.
This is a grossly oversimplified explanation of foreign income, deductions and foreign tax credits but you get the idea that your original impression is wrong.
Nov 1st 2005 | 9:24 am
#48
Premium Member
Joined: Feb 2004
Posts: 1,928
From: Ontario.
Re: Working or Retiring
Originally Posted by WorldWeary
Tiaribbon see the other post I started titled British Pension in Canada.....
There is a tax treaty but he will have to pay the difference between the UK tax and the Canadian tax to Revenue Canada. ie. if the UK takes 22% on it and Canada would claim 24% on it, he will have to pay the 2% difference in Canada. Revenue Canada requires you to report your worldwide income for each and every year in which you are deemed to be resident for tax purposes in Canada.
Nov 1st 2005 | 9:25 am
#49
Premium Member
Joined: Feb 2004
Posts: 1,928
From: Ontario.
Re: Working or Retiring
Originally Posted by Cowtown
You are incorrect.
It may be taxed overseas and then taxed again in Canada. It generally levels out to the same tax liability through deductions and credits in Canada - but that is not guaranteed as it depends on the rate of tax applied overseas.
This is a grossly oversimplified explanation of foreign income, deductions and foreign tax credits but you get the idea that your original impression is wrong.
It may be taxed overseas and then taxed again in Canada. It generally levels out to the same tax liability through deductions and credits in Canada - but that is not guaranteed as it depends on the rate of tax applied overseas.
This is a grossly oversimplified explanation of foreign income, deductions and foreign tax credits but you get the idea that your original impression is wrong.
Nov 1st 2005 | 10:22 am
#50
Thread Starter
Ambiroadious
Joined: Oct 2005
Posts: 216
From: Scotland till March 06, then the Okanagan
Re: Working or Retiring
Originally Posted by Tiaribbon
I had a quick look earlier but didn't have time to read everything - thank you for that. Husband is meeting up with his Accountant this week to figure everything out so I will email him this link as I am sure he will find it very useful.
Ahh okay, now I understand - but it wouldn't make a whole load of difference which country he pays the larger amount of tax would it - are you suggesting it more beneficial to pay the tax within Canada rather than the UK; and if you don't mind answering why you would do this?
Ahh okay, now I understand - but it wouldn't make a whole load of difference which country he pays the larger amount of tax would it - are you suggesting it more beneficial to pay the tax within Canada rather than the UK; and if you don't mind answering why you would do this?
On a simple level, declaring and paying tax on all of it in Canada simply makes your tax return easier to do in Canada. If paying the bulk in the UK, you will then need to provide additional documentation to Revenue Canada showing the tax paid in the UK. Bottom line, a more complicated tax return and more cost if you are having someone do it for you. But it really needs a tax accountant familiar with ex-pat situations to explain the different strategies available and their pros and cons.
Nov 1st 2005 | 11:38 am
#51
Premium Member
Joined: Feb 2004
Posts: 1,928
From: Ontario.
Re: Working or Retiring
Originally Posted by WorldWeary
You need an accountant who is familiar with income tax laws and strategies for ex-pats in order to determine what the best overall strategy is if you are going to be living in Canada but still have some income derived in the UK.
On a simple level, declaring and paying tax on all of it in Canada simply makes your tax return easier to do in Canada. If paying the bulk in the UK, you will then need to provide additional documentation to Revenue Canada showing the tax paid in the UK. Bottom line, a more complicated tax return and more cost if you are having someone do it for you. But it really needs a tax accountant familiar with ex-pat situations to explain the different strategies available and their pros and cons.
On a simple level, declaring and paying tax on all of it in Canada simply makes your tax return easier to do in Canada. If paying the bulk in the UK, you will then need to provide additional documentation to Revenue Canada showing the tax paid in the UK. Bottom line, a more complicated tax return and more cost if you are having someone do it for you. But it really needs a tax accountant familiar with ex-pat situations to explain the different strategies available and their pros and cons.
Many thanks for that WW. Truce?
Nov 1st 2005 | 12:02 pm
#52
Thread Starter
Ambiroadious
Joined: Oct 2005
Posts: 216
From: Scotland till March 06, then the Okanagan
Re: Working or Retiring
Originally Posted by Tiaribbon
Our accountant does have a number of clients who live overseas but still claim an income or run a business in the UK, so hopefully he will be able to figure it all out for us....he is an absolute star our accountant!!
Many thanks for that WW. Truce?
Many thanks for that WW. Truce?
There is no need of a truce as far as I am concerned.
Nov 1st 2005 | 1:44 pm
#53
Moderαtor Emeritus
Joined: Sep 2003
Posts: 30,771
From: Upstate South Carolina
Re: Working or Retiring
Originally Posted by WorldWeary
I respond to each new post as if I had never heard of the poster before
Nov 1st 2005 | 11:51 pm
#54
Banned
Joined: Oct 2005
Posts: 400
Re: Working or Retiring
Originally Posted by WorldWeary
I respond to each new post as if I had never heard of the poster before Tiaribbon. I don't hold grudges. If you post something with which I disagree I will say so. If you post something for which I have some relevant input I will give it. Often the WAY in which I say things offends people. I am aware of that but make no apologies. I tell it as I see it. Often I find disagreeing with someone's opinion results in them perceiving it as a personal attack and they then respond with a personal attack against me. No problem I will give as good as I get. If someone wishes to stoop to a slanging match I'll slang with the best of them. If someone wishes to debate a point I will debate.
There is no need of a truce as far as I am concerned.
There is no need of a truce as far as I am concerned.
Tiaribbon just said to you, to let you guys put it all behind yous and move on, but your last statement there, doesn't do you justice.
Nov 2nd 2005 | 2:57 am
#55
Thread Starter
Ambiroadious
Joined: Oct 2005
Posts: 216
From: Scotland till March 06, then the Okanagan
Re: Working or Retiring
Originally Posted by finallygotout
WW, it looks like you enjoy a melee Tiaribbon just said to you, to let you guys put it all behind yous and move on, but your last statement there, doesn't do you justice.
Tiaribbon just said to you, to let you guys put it all behind yous and move on, but your last statement there, doesn't do you justice.
Nov 2nd 2005 | 3:06 am
#56
Moderαtor Emeritus
Joined: Sep 2003
Posts: 30,771
From: Upstate South Carolina
Re: Working or Retiring
Originally Posted by WorldWeary
'Behind yous'??? Oh my you're speaking N. American. Congratulations.
Nov 2nd 2005 | 3:16 am
#57
Lost in BE Cyberspace
Joined: Sep 2004
Posts: 6,713
From: Windsor, ON; Chicago, IL
Re: Working or Retiring
Originally Posted by iaink
Do you realise that the typo / spelling nazi is in fact one of the lowest forms of life known to man...below even telemarketers?
IMHO the only time it's acceptable to point out someone's typos/misspellings is in reply to a post telling you what good spellers they are
Nov 2nd 2005 | 3:32 am
#58
Class 1 Driver and Nurse
Joined: Feb 2005
Posts: 1,498
From: Kentville, N.S.
Re: Working or Retiring
Originally Posted by Biiiiink
He's upset because in each of 2 of his posts yesterday telling me how wondrous his education and spelling was, he made a spelling mistake. He thinks the whole forum's fair game now.
IMHO the only time it's acceptable to point out someone's typos/misspellings is in reply to a post telling you what good spellers they are
IMHO the only time it's acceptable to point out someone's typos/misspellings is in reply to a post telling you what good spellers they are
Which is why, of course, he is constantly on the attack and trying to belittle people.
Nov 2nd 2005 | 3:34 am
#59
Banned
Joined: Oct 2005
Posts: 400
Re: Working or Retiring
Originally Posted by WorldWeary
'Behind yous'??? Oh my you're speaking N. American. Congratulations.
Nov 2nd 2005 | 4:31 am
#60
Thread Starter
Ambiroadious
Joined: Oct 2005
Posts: 216
From: Scotland till March 06, then the Okanagan
Re: Working or Retiring
Originally Posted by finallygotout
I hope after years of living here, I don't turnout to be like you though. You couldn't cut it back there in the UK, and now you are coming back here?
"couldn't cut it", how cute.
