Englishmaple

So a quick update. A while back I decided I wanted to go back to a retreat centre in the UK (I'm a long time meditator) only they didn't have any spaces - so I asked to be put on the waiting list.

Well yesterday they contacted me and said they had a space and would I like to come - it's for a month.

I thought about it a lot ... and realized in the process that really, I just need to move back to the UK and then once I'm settled I will go there for a meditation retreat when my life is a bit more stable.

So anyway - that's when I realized - yep, I do need to move back to the UK. As well, I've been doing a bit of research and I've realized that there are jobs which I think I could do quite well with my background and which UK employers provide training for (unlike Canadian employers). For instance, I could work in foster care taking care of children with emotional difficulties - I was looking at an advert yesterday where the employer said they would provide all the training. And as I've got a degree in social work, I've done a lot of studying on attachment disorder, children and adults emotional difficulties etc.

Also, I looked around and saw there is quite a lot work that's prison related too. I have 4 years experience working as a volunteer in a prison teaching yoga and I was trained by an organization in the UK that trains people to teach in prisons. Couple that with my social work degree and my library degree and I ought to be able to find someone somewhere who would be willing to employ me.

So I have a few questions because now I realize I need to stop prevaricating around moving back!

Spousal support question - my spousal support is currently paid in Canadian currency into a Canadian bank account. When I move back to the UK I'm wondering how to set this up most effectively to avoid constant currency exchange charges? For example, I could open a UK bank account and ask my ex-husband to pay my spousal support into that - but I'm wondering how to arrange it so that he doesn't have to pay extra charges for the currency exchange? How do people work this one out? Any suggestions appreciated.

RRSP questionI know I mentioned the RRSP before - as I understand it, I would need to give up my Canadian tax citizenship in order to avoid filing a Canadian tax return each year. If I do this, how do I work that with my RRSP? My ex-husband is of the opinion that I should keep it as it is and then draw on it when I retire ... but if I do that, I will then have to pay tax on it won't I? But if I'm not a Canadian tax payer at that point how does it work?

I could really do with talking to a financial advisor or financial information person but I don't know who to contact - so if anyone could point me in the direction of someone who deals with these issues that would be really helpful - I'm okay paying a fee for independent advice - it's just finding someone.

Also, does anyone know how long it takes to sort out all this financial stuff? I'm just thinking of the timeline I need to think about with respect to moving back in terms of giving notice on my apartment and making sure everything is sorted before I leave.

Moving company question - With respect to moving, the moving company I plan on using say they have to have a UK address to send my stuff to - so I'm thinking that I will have to make a trip to the UK to find somewhere to live, open a bank account and then fly back to Canada, sort out moving my stuff back and then fly back to the UK again ... unless anyone can suggest any other ways of doing things? I'm a bit wary of arranging rented accommodation over the internet without seeing it (I've rented some really awful places in the UK in the past but this time I would only want to rent a room). The moving company I'm using I've used before - they are really good so I don't want to go with another company.

I'm trying to whittle down my belongings as much as possible but I don't think I can part with everything and the things that are left will be too much to transport by suitcase.

Any info or advice on any of this would be much appreciated. Thanks

Dashie

Sounds like you've made a decision!

Re the tax/RRSP stuff, you'll be paying tax on your RRSP either now or later, it really depends what you want it to do for you I think. JonBoyE in the Canada section would be an excellent person to talk to - he's an accountant and tax adviser type bod, very helpful.

For your spousal support, you're going to have to pay fees, no avoiding it really. I'm thinking you'll probably have to keep your Canadian bank account and transfer it yourself. Is there any way you can afford to let it accrue, and not transfer every month? Otherwise, I'd look at the different currency broker/exchange companies and see what their charges are.

Moving - are you tied to that moving company? I think they'll all need an address of some sort, when we moved here, we used the address of someone we knew in Toronto. Actually, he's the same shipper we would use again, vaguely family, seems to be pretty reasonable. Do you have any friends in the UK that would let you put their address?

As for how long it takes to sort it all out, I'm not sure to be honest. We'd have to basically sell our house and then pay off debts and settle everything from there, so I'm hoping not too long. I'm pretty sure that you can call utility companies, credit card companies etc. to get final bill and just pay them and go once you come to the end of your contracts. Most companies require 30-60 days to cancel, such as phone etc. but I'm thinking you'll likely have to give 2 months on your apartment anyway, yes?

Saz66

Have you looked at opening an HSBC bank account here which you can then transfer money to easily to another HSBC UK bank account (open when you get there). I think you still have to pay a transfer fee but I think it would be easier for you to set up for monthly transfers.

Editha

The bad news is that there isn't a free way to transfer money to the UK. Many people on this forum use currency trading companies such as Forex.com which they find cheaper than their bank. Personally I've always found my bank cheaper, but I seem to be lucky. In the UK I bank with FirstDirect, and it might be worth considering opening an account with them when you return. But you should shop around.

Once you are in the UK you are liable for UK tax on all your income, and not liable to pay tax in Canada. You don't have to fill in Canadian tax forms every year or renounce your citizenship. You should tell the Canadian Revenue Authority that you are changing your residence, and the date. This is the advice I've received from the CRA in respect of my husband's pensions.


It takes weeks for your stuff to reach the UK. Give the company a temporary address and then change it once you have found somewhere to live in the UK. Your parents' address would do for now.

Have you used your usual company to move countries before? If all you have is a box or two you might find it much cheaper to use a company like Upakweship.

not2old

http://www.cra-arc.gc.ca/E/pbg/tf/nr73/nr73-12e.pdf

http://www.cra-arc.gc.ca/tx/nnrsdnts...eng.html#mgrnt

On RRSP's withdawals as a non resident

http://www.cra-arc.gc.ca/tx/ndvdls/t...s/rts-eng.html

http://www.cra-arc.gc.ca/esrvc-srvce.../menu-eng.html

Editha

If you follow the calculator on those pages, the income from an RRSP is tax exempt, because of the Tax Treaty between UK and Canada. Withdrawal of lump sum is not covered by the exemption and subject to a tax of 25%.

You only need to fill in a tax form if you owe tax or claiming tax back. So if the OP is not cashing in her RRSP after she takes up residency in the UK, she won't need to fill in a tax form, except of course for the part of the year she spent in Canada before moving.

Dashie

Well there's something I didn't know! Thanks for that Editha

not2old

with a big grin

Editha

Well the information on the site is rather confusing. It says that non-residents have to pay tax on their Canadian income, but doesn't explain that the rate may be 0%!

Editha

The first of those forms -- Determination of Residency Status -- leaving Canada, is not, as far as I can see, one you have to fill in when you emigrate. Determination of residency status is necessary when it is unclear which country you are resident in. The form doesn't actually cover the circumstances of a straightforward resident of Canada leaving and becoming a resident somewhere else.

When I asked the CRA, they told me to write them a letter, and that is what I intend to do.

Englishmaple

So quick update!

I handed my notice into the apartment folks yesterday - so I need to vacate by April 30th. I decided to give myself an extra month leeway (rather than leave at the end of March) so that I have plenty of time to sort out all the tax stuff and figure out a place to live back in the UK.

I can't believe how much peace is in my heart since I made this decision - thanks so much to everyone on the board for the support. I know it's going to be challenging moving back but the peace I feel inside me now has made me realise it really is the right decision for me.

I spoke to a CRA person this morning - if anyone wants a good CRA number that helps with International Tax issues it's this one: 1 855 284 5942 (I only got it after ringing several CRA numbers and being passed on to different people).

The person I spoke to was so helpful. I'm going to look up the booklets P102 and T4056 which apparently will provide me with more info.

That said the person I spoke to said that the way my spousal support works, my ex-husband will have to pay a withholding tax on it - so he'll deduct a certain amount before it goes into my Canadian account. And then I'll transfer it across to the UK. The withholding tax is 25%. So I think it's slightly more than I pay now - but if the alternative is staying in Canada then it's not an alternative ... I'm going to focus on the fact that I'm getting something rather than nothing and try not to think about the 25%.

And I am definitely leaving my RRSP untouched for the time being - the person I spoke to said that if it's converted to an annuity when I retire and start to draw upon it then it will be subject to a 10% tax otherwise it will get hammered for 25% tax (if I draw the whole lot out).

So another question - re: renting a room in the UK - I'm going to fly over to the UK in March and sort that out but I'm just wondering what the best way is to organise the finances of it. I won't have a UK bank account until I fly over and sort it out - so in order to secure a room I guess I will either need to bring cash with me to pay a month or couple of months rent up front ? Or should I bring travellers cheques? I'm a bit nervous because I've had some bad experiences renting in the UK in the past and I don't want to be scammed. For example, I once travelled from Birmingham to Guildford to sort out some accommodation (I was moving to Guildford for a job). I thought I had sorted out the accommodation - I met with the owner and she agreed to rent a room to me. Then when I got back to Birmingham she rang and told me she changed her mind! I then had to go back to Guildford again to sort out another room rental at very short notice - it was all rather stressful.

I'm guessing if I paid someone up front for a room rental then I would be entitled to a rent book? Which would be evidence of some kind of contract? Anybody with any experience/advice on this would be much appreciated. I'm planning on finding a room on the spareroom website that one of you posted - so I would be negotiating with the home owner I guess. Once I have an address and bank account sorted, I will fly back to Canada and then organize sending my belongings there - Editha I'm going to stick with the company I intend to use because they have been so good in the past and, unfortunately, it's not just a couple of boxes I have to move (wish it was). And the company need an address so they can then give me a quote for the moving costs (and it has to be the address they will deliver to). I'm trying to get rid of as much stuff as possible but I don't want to get rid of everything because it would be so expensive buying stuff again in the UK (and I've also not had much luck selling stuff on kijji so far). So I'm planning on taking saucepans and kitchen stuff, bedding, some books and files from my studies and some stuff from my yoga teaching work (mats/bolsters) and some fitness stuff I have (hand weights) that I'm using to try and help with my health.

My family were not supportive when I raised the idea of moving back some time ago - so involving them in the current situation is not possible - I would only get a lot of negative criticism and I really can't face dealing with that at the moment.

islandwoman120

Englishmaple you have my moral support even though I am unable to answer your newest questions. Hopefully someone else will be able to help you with those.

Editha

I hate to disagree with whoever advised you at the CRA, but I don't see how you can possibly be liable for Canadian tax on your income from your RRSP when you are resident in the UK, and it is contrary to the advice I've been given by the CRA and the advice on their website. However, it is a future issue from your point of view (but not from mine), and not that important at the moment.

On the bank account issue, there is nothing to stop you using your Canadian bank account in the UK, withdrawing cash on the debit card and using your credit card. I think that is probably going to be cheaper and more convenient for you than buying travellers cheques.

Editha

I've checked again, and I am quite certain you will not be liable for Canadian tax on periodic payments from an RRSP once you are resident in the UK.

You will also be able to claim back the withholding tax on the payments from your husband.

Englishmaple

Editha what was your sources of info for this? Just curious. The RRSP is definitely a future thing for me at the moment - I will sort it out once I'm retired back in the UK and at least I know enough to not collapse it before I leave (it's about 40K in $'s).

If I can claim the withholding tax back in the UK that would be lovely as it will impact big time on the amount of spousal support I will have to live on while I try and get work (looking at the room rents - oh my! they are high). I've been trying to navigate my way around the UK HM revenue site - I think I've found a number to call them but it was difficult to figure out who to contact.