scottymallo

Any PRs still commuting to the UK for Work? I have been in Canada since Jan 08.
Basically as a Visitor only! I am currently going through the sponsorship route as a spouse. I have tried on numerous occasions to understand the Tax implications when i become a PR. I have even had the UK tax advisor for my company look into the situation still no clearer. How will i pay canadian tax! AS my UK tax will automatically come out as i am on the UK pay roll for my company. Any help or any one who is currently doing the same please advise!

Marathonwreck 2

Hi Scottymallo
I ended up in a similar scenario(it wasn't planned that way). Tax was, as usual , deducted at source in UK. Keep payslips and any tax receipts you get. At the end of the finacial year,(the canadian one) pick a local accountant , explain the situ and he'll prepare a canadian tax return for you. Expect to have to pay a small 'top-up' depending on salary and deductions etc. Local accountant fees should be pennies(mine was) and give you a no-hassle intro to Canadian daylight robbery........sorry canadian tax collection. I still commute...........these days to Africa but fortunately for the canadian branch of my company....which gives me at least 'some' taxbreaks.........

Souvenir

I work for a UK company. I was a PR when I started but am now a citizen. I am permanent member of staff, with the same package I would have if I was in London. I am paid monthly by direct transfer into my Canadian bank account. My employer picks up the charges. I am paid gross and there are no employee or employer deductions. The UK taxman is not interested in me and because I am not on a Canadian payroll, there is no PAYE mechanism.

In the first year (2004), on the advice of the Canadian tax people, I waited until my accountant did my tax return and then sent Revenu Quebec and the CRA what I owed. Both of them then sent me a schedule of payments to be made in 2005 (estimates based on the tax paid in 2005). Imbalances are sorted in the annual tax return. When I did my return for 2007, I still owed the province; the Feds owed me.

I work from home. The Canadian tax people view me as self-employed, so I get to deduct stuff.

scottymallo

Marathonwreck 2 I think i will be in a similar situation to yourself! I am in uk 40% tax bracket currently losing 29% at the moment including national insurance! What do you do regarding national insurance? and How much are we talking with this Candian top up? £100s or £1000s! I m might have to look into getting a job in Canada! if it s to much! it's already costing £400 a month in flights.
cheers
Scottymallo

souvenir cheers for the info!

Souvenir

I pay into the Canada Pension Plan. I don't pay UI (=NI) because I am self employed. I'd never be able to claim it anyway.

If you are deemed resident in Canada, you must file a tax return here. The consider your worldwide income, as do the Brits. I also file a UK tax return. That only covers income etc in the UK because I'm not resident in the UK. My Canadian return covers all my income but I get a credit for any tax I have paid in the UK. You don't get done twice.

You need to establish where you are resident for tax purposes.

Souvenir

Here are some numbers for you to play with. Most of my income is in the top bracket. I have the misfortune to live in Quebec, where the top rate is the highest in the country (24%) and kicks in much earlier than elsewhere (below C$60k). Last year I got my gross down by about C$15k, mainly through RRSPs. The Feds took 15% of taxable. Quebec took 24%. That's a total tax hit of 39%.

Marathonwreck 2

Hi Scottymallo
Well, top up obviously depends on income etc. but on what i consider a reasonably substantial income, for 5 months (that fell into the first canadian tax year), I had to cough up about $1300... Flights? oh well....mine were provided by employer of course... they are certainly paying for my flights now as each way is some 8300 miles.......bit of an XXL carbon footprint I suppose.......

scottymallo

Thats a decent commute least only 6 trips a year! im currently work the 2 on 3 off rota so 10 trips! Trying to get a transfer to Angola so will get flights paid! but trying to mentally viv myself up to work for a month at a time!!

Marathonwreck 2

Hi scottymallo
Angola, eh ? Well that's where i hang my hat just now..... Paradise lost......NOT. Hope you know what you're in for Prepare to turn grey and pull out any hair you may have....... If you don't mind me asking......give me a clue who you work for......oil-patch I take it ?

scottymallo

Hi working for BP at the moment! recieved a job offer from Total Friday! so im in a situation were i can stick with bp then hope to get to angola or baku. Or move to total for better cash straight 2/3 rota still in the northsea or try and get a job in a refinery in BC! job role CRT, OH want s me to settle in BC. What about yourself?