Working for UK company in Canada with IEC Work Permit
#1
Thread Starter
Just Joined
Joined: Jun 2024
Posts: 1

Hello!
I am planning to move to Toronto in August. My UK based company have agreed provisionally for me to work remotely for the final month of my notice period (August). Please can anyone confirm if there are any legal or tax implications for both them and I in order for me to do this?
Secondly, they have suggested they can offer me rolling 1 month contracts for September and October - as above - does anyone know any legal or tax implications for both of us if this happens?
I need to know specifically what might potentially burden them by agreeing to this process, as their approval is dependent on that.
I have been provisionally successful in obtaining my IEC work permit (dependent on re-showing all my docs at the border).
Massive thank you for your help!!
I am planning to move to Toronto in August. My UK based company have agreed provisionally for me to work remotely for the final month of my notice period (August). Please can anyone confirm if there are any legal or tax implications for both them and I in order for me to do this?
Secondly, they have suggested they can offer me rolling 1 month contracts for September and October - as above - does anyone know any legal or tax implications for both of us if this happens?
I need to know specifically what might potentially burden them by agreeing to this process, as their approval is dependent on that.
I have been provisionally successful in obtaining my IEC work permit (dependent on re-showing all my docs at the border).
Massive thank you for your help!!
#2
I've worked for a UK university on and off for several years. They have had me on payroll, but now they give me a contract for services each year and pay me direct to my CAN bank account in CA$. I'm responsible for tax (in Canada).
#3
Forum Regular


Joined: Mar 2023
Posts: 73

If you are tax resident in Canada, taxes are due to Canada (depends in ties to the UK and how long you plan on staying in Canada, how much of the tax year you spend in Canada vs UK). If the employer makes source deductions, you would present a certificate of foreign tax paid with your T1 tax filing in Canada. Tax year is January 1 to Dec 31. If more tax would be due in Canada, you pay the difference, if less tax would be due in Canada, you do not get any back. If paid on contract, with no source deductions, you would report the full amount, in CAD, either the FX you received when changing currency, or an average FX from the BOC website for the year if holding in GBP. If you have other income sources, these may also be reportable as would most foreign held assets that cost over $100,000. Not in your first year, but subsequent years.






