Unsure Who to Pay Taxes – UK Citizen Living in Canada

[jamies_taylor]

I’m a UK citizen who came to Canada in June 2023 to stay with my partner and have now applied for PR. I’ve been here 1 year 9 months without leaving, currently on a work permit, working remotely for a US start-up as a self-employed contractor.


I filed and paid my UK self-assessment for April 2023–April 2024 (including the advance payment for this year), but for April 2024–April 2025 I’ve been in Canada the whole time. Do I now pay taxes to Canada instead of the UK, even though I’m not a PR yet and don’t have a SIN? Already paid the UK half for this year, so I’m confused.


Would an immigration/tax accountant be the right person to help here? Any guidance appreciated.

 

[Copingwithlife]

If you have a work permit , nothing is stopping you from going to Service Canada and applying for a SIN

Why haven’t you applied for a SIN ?

Not being a PR yet doesn’t mean the income is tax free . You’ll file a T2125 self employed income, if the income is more than $30k over a 12 month period, you’ll need to register for a RT business number (GST)

And the tax year is Jan - Dec

 

[jamies_taylor]

Thanks for the clarification — really helpful!


You’re right, I probably should’ve applied for a SIN already. I guess I was unsure because I’m still waiting on PR and didn’t realize a work permit was enough to get one. I’ll get that sorted ASAP.


Also didn’t realize I’d need to file a T2125 or register for GST/HST if I go over $30k – that’s super useful to know. Appreciate the guidance!

 

[canuck78]

Thanks for the clarification — really helpful!


You’re right, I probably should’ve applied for a SIN already. I guess I was unsure because I’m still waiting on PR and didn’t realize a work permit was enough to get one. I’ll get that sorted ASAP.



Also didn’t realize I’d need to file a T2125 or register for GST/HST if I go over $30k – that’s super useful to know. Appreciate the guidance!

If your employer has clients or customers in Canada you weren’t able to work from Canada as a tourist. Not sure why you paid and prepaid UK taxes while not a UK resident or employed by a UK employer. You will likely have to refile your UK taxes. Also sounds like you have been working illegally while in Canada at the very least since you got your WP but didn’t apply for a SIN#. Did you apply for a health card? Has your partner declared that they are common law to CRA once you became common law?

 

[Copingwithlife]

If you have a work permit , nothing is stopping you from going to Service Canada and applying for a SIN

Why haven’t you applied for a SIN ?

Not being a PR yet doesn’t mean the income is tax free . You’ll file a T2125 self employed income, if the income is more than $30k over a 12 month period, you’ll need to register for a RT business number (GST)

And the tax year is Jan - Dec

You still register even though your client is overseas . It would be zero rated, but you’d be able to claim the input tax credits you pay on eligible expenses to run the business
So you could be eligible for a refund