Business in England - Live in Canada - Where do I pay tax?

[StevenSmith3427]

Good morning all,

I hope everyone is well, and looking forward to a great Christmas!

I am struggling with comprehending the my current tax situation.

I am a citizen of the UK, and have PR status in Canada.

I live in Canada 7 months of the year, visit England 4 months of the year, and go on vacation for the remaining 1 month of the year.

I have a working business in England, and I am registered as self-employed with the UK.

I work from home in Canada, but do not generate any income in Canada (all the income that I make is from the UK market).

I am required to submit a business tax return in Jan-Feb to the UK.

Basically, I have no idea if I should pay my tax to the UK or to Canada? In addition, should I be registered as self-employed in Canada despite my business being based in England.

Cheers!

Steve

 

[JamesBox]

Re: Business in England - Live in Canada - Where do I pa

Looking forward to seeing some replies to this. Similar situation - U.K. Citizen, currently have a work visa in Canada (PR just received this week - need to activate it at the border). Work full time in Canada, but also have a client in the U.K.

UK invoices charged to my Canadian address, but paid in £ to CAD account.

I'll pay my Canadian tax as normal. Wondering if I pay tax on my UK income here in Canada or in U.K..

For you StevenSmith, I'm 99% sure you need to file Canadian tax too. But just put 0$ for Canadian earnings, for world income put your U.K. Earnings. I say this as you are a Canadian resident both Tax and Immigration.


I'll be speaking to my accountant nearer the time but he doesn't have other clients in a similar situation.

 

[Torlon]

Good morning all,

I hope everyone is well, and looking forward to a great Christmas!

I am struggling with comprehending the my current tax situation.

I am a citizen of the UK, and have PR status in Canada.

I live in Canada 7 months of the year, visit England 4 months of the year, and go on vacation for the remaining 1 month of the year.

I have a working business in England, and I am registered as self-employed with the UK.

I work from home in Canada, but do not generate any income in Canada (all the income that I make is from the UK market).

I am required to submit a business tax return in Jan-Feb to the UK.

Basically, I have no idea if I should pay my tax to the UK or to Canada? In addition, should I be registered as self-employed in Canada despite my business being based in England.

Cheers!

Steve

Hi - I'm in a similar boat - but I'm a Canadian Citizen, living in Canada, working for a UK company (used to live in UK).
Need to understand options if I stay self employed and 'invoice' them - I need to charge them 13% HST - that's hefty.

OR - if I return to be an employee of the UK based company - how does that work for tax purposes?
I'm paid in UK funds - to my UK account, and then transfer over here to Canada.

Anyone know any good tax accountants who can advise the process here?
Many thanks,
MJ

 

[StevenSmith3427]

Hi all,

Still looking for answers to this topic.

I am about to register my business taxes in the UK, and they also want me to submit a personal tax return.

I will also submit a person tax return in Canada within the next 2 months.

At this rate, I believe I will end up being taxed in both countries.

If anyone has any input, it would be very helpful, and appreciated.

Cheers,

Steve

 

[torontosm]

Hi all,

Still looking for answers to this topic.

I am about to register my business taxes in the UK, and they also want me to submit a personal tax return.

I will also submit a person tax return in Canada within the next 2 months.

At this rate, I believe I will end up being taxed in both countries.

If anyone has any input, it would be very helpful, and appreciated.

Cheers,

Steve

You would pay your corporate tax in the UK. You would also pay personal tax in the UK for any monies distributed by your company to yourself. You would then file a tax return in Canada indicating your earnings from abroad. Based upon the tax treaty between Canada and the UK, you would receive a credit for some or all of the tax already paid in the UK, and may or may not have to pay an incremental amount of tax to the Canadian government.

 

[StevenSmith3427]

Thanks for the reply, most helpful, and appreciated.

I have a quick question - someone just mentioned to me that I may not be able to get the Canadian tax exemption if I have foreign (UK) income. Also, if I only have foreign income, can I still claim my spouse as a dependent to get that tax exception?

Thanks in advice, very helpful.

Steve