Hi
I was wondering if someone could help with a tax question.
I intend to move to Canada on an open work permit, but carry on working for my UK company paid via PAYE into my UK bank account.
I am wondering how the taxation works. I know the UK and Canada have a double taxation policy, but i'm not 100% on the finer details.
I will be in Canada for at least a year, but it wouldn't be continuous. As I will remain employed by my UK company i intend to return to the UK, probably once a quarter for 1-2 weeks at a time.
Do i get paid by PAYE then at the end of the financial year declare the earnings in Canada? Or do i declare when back in the UK?
What happens if i earn above the double taxation threshold? Do i pay UK and Canadian Tax on just the portion that is over the tax threshold or do i pay it on my entire earnings? So say the double exemption is for 6 months only, and i earned 50K GBP per annum, but did 9 months in Canada with 3 months in the UK, would I only be taxed on 3 months of my 50k salary in Canada or on all of the salary?
Thanks for any help.
I was wondering if someone could help with a tax question.
I intend to move to Canada on an open work permit, but carry on working for my UK company paid via PAYE into my UK bank account.
I am wondering how the taxation works. I know the UK and Canada have a double taxation policy, but i'm not 100% on the finer details.
I will be in Canada for at least a year, but it wouldn't be continuous. As I will remain employed by my UK company i intend to return to the UK, probably once a quarter for 1-2 weeks at a time.
Do i get paid by PAYE then at the end of the financial year declare the earnings in Canada? Or do i declare when back in the UK?
What happens if i earn above the double taxation threshold? Do i pay UK and Canadian Tax on just the portion that is over the tax threshold or do i pay it on my entire earnings? So say the double exemption is for 6 months only, and i earned 50K GBP per annum, but did 9 months in Canada with 3 months in the UK, would I only be taxed on 3 months of my 50k salary in Canada or on all of the salary?
Thanks for any help.