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uk income tax issue - foreign income

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uk income tax issue - foreign income

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Old Sep 30th 2010, 10:47 pm
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Default uk income tax issue - foreign income

I will come clean and say i havent looked at the wiki yet - my excuse is that having been pouring over uk tax return notes for the morning I am bog eyed, but here is my question.

I am currently resident in the UK, filling in my 09/10 tax return, returned to uk in july 09. I am paye in the uk. I submitted my canadian return for 09 a while ago. I noted my uk salary and uk tax paid. So I have a period for first 1/4 of uk tax period, where i was earning in canada and paid tax on this in canada. I continue to make about 500 bucks monthly (gross) from continued work for a canadian organisation - noted on my canadian tax return.

Do I need to declare this on my uk return, does the double taxation agreement apply here?

any clarity would be helpful

Last edited by snowshoveller; Oct 1st 2010 at 12:39 am.
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Old Oct 1st 2010, 12:45 am
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Default Re: uk income tax issue - foreign income

Originally Posted by snowshoveller
I will come clean and say i havent looked at the wiki yet - my excuse is that having been pouring over uk tax return notes for the morning I am bog eyed, but here is my question.

I am currently resident in the UK, filling in my 09/10 tax return, returned to uk in july 09. I am paye in the uk. I submitted my canadian return for 09 a while ago. I noted my uk salary and uk tax paid. So I have a period for first 1/4 of uk tax period, where i was earning in canada and paid tax on this in canada. I continue to make about 500 bucks monthly from continued work for a canadian organisation - noted on my canadian tax return.

Do I need to declare this on my uk return, does the double taxation agreement apply here?

any clarity would be helpful
You won't in the end be taxed twice, but if you pay tax in two placen, you'll have to go through hoops to one payment back.

Once you become resident in the UK (or any country, as best I know) you pay tax in that country on income from all sources. So I assume you did a Canadian tax return reporting your income from all sources up to the date you left, and then a UK one for your income from all sources from the time you became resident in the UK.

Just been there, done that.

Despite the fact that you have Canadian income, you don't do a Canadian tax return ever again unless you return to live there. (It's a bit different if you've left the US, I gather.)

If tax is being deducted at source in Canada, you should correct that.

I'm no expert, but as I say, we've just done all this. Moved back in September of '09. I think the above is correct for everyone.

Bev
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Old Oct 1st 2010, 12:54 am
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Default Re: uk income tax issue - foreign income

Originally Posted by Bevm
You won't in the end be taxed twice, but if you pay tax in two placen, you'll have to go through hoops to one payment back.

Once you become resident in the UK (or any country, as best I know) you pay tax in that country on income from all sources. So I assume you did a Canadian tax return reporting your income from all sources up to the date you left, and then a UK one for your income from all sources from the time you became resident in the UK.

Just been there, done that.

Despite the fact that you have Canadian income, you don't do a Canadian tax return ever again unless you return to live there. (It's a bit different if you've left the US, I gather.)

If tax is being deducted at source in Canada, you should correct that.

I'm no expert, but as I say, we've just done all this. Moved back in September of '09. I think the above is correct for everyone.

Bev
Thanks bev, that confirms my understanding and what i have done with tax return. I am all accounted for in canada, it was the split year that I was having difficulty with - but after a calming cup of tea all is clearer.

Cheers

ss

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