How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask Sam Your Own Question
Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 16422
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
16196420
Type Your Tax Question Here...
Sam is online now

I am looking at moving to Canada but will continue to work

Customer Question

Hello, I am looking at moving to Canada but will continue to work for a UK company on a commuting basis, but with fewer than 100 days per year in the UK. I'm confused by the tax treaty with Canada, can you tell me where I would end up paying tax?
JA: Have you talked to a tax professional about this?
Customer: no
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: No thank you
Submitted: 17 days ago.
Category: Tax
Expert:  Sam replied 17 days ago.

Hi

Will any of these 100 days be for work purposes ?

And is it possible you will visit for less than 90 days none of which are for work purposes and not for more than 30 consecutive days on the trot ?

What ties will remain in the UK other than employment

Do you have immediate family  wife or children

Do you own property for you to use when you want to

Thanks

Sam

Thanks

Sam

Customer: replied 17 days ago.
I would have no property or assets remaining in the UK, and will be looking to become a permanent resident in Ontario, Canada.My salary is £73,000.Almost all days in the UK will be for the purpose of employment, however the nature of my work (pilot) means I don't remain in the UK.There's a good chance 3-4 months of work will be undertaken in Scandinavia but for the same UK based company, so I could definitely spend less than 90 days in the UK per year.Would not spend 30 consecutive days in the UK.Only family in the UK will be parents.Thanks
Expert:  Sam replied 17 days ago.

Hi

As long as you spend no more than 90 days in the UK and you don't actually start work until you take off and stop work when you land so as long as you are out by midnight each time (or that counts as a day in )

Then this arrangement has to last beyond a full tax year so extend beyond 05/04/2023 if so and you can spend less than 90 days then you will be treated as not resident and not liable to UK tax but will pay national insurance for the first 52 weeks

make sure you fill in form P85 link here https://www.gov.uk/government/publications/income-tax-leaving-the-uk-getting-your-tax-right-p85

You then will be liable to tax in Canada

Thanks

Sam

Customer: replied 17 days ago.
Thank you for your reply. So just to confirm if I moved I would continue to pay UK tax and National insurance for the remainder of the tax year, and the whole of the next tax year? So for illustration purposes, if I moved today, I'd pay UK tax and NI for this year and the whole of next year until 05/04/2023? And then UK National Insurance until 05/04/2024?Would I also be liable to tax in Canada at the same time as I'm still paying UK tax?And just to confirm, if I land (at work) in the UK at, for example, 7am but leave the UK before midnight, that day will not count as one of the 90?If I were to commute into the UK on Tuesday evening, but start work on Wednesday morning, how many days would this count as?Many thanks
Expert:  Sam replied 17 days ago.

HI

No if you moved and will stay living and working out of the Uk for more than a full tax year (so beyond 05/04/2023) during which your visits back to the Uk were less than 90 days then  then you will pay no tax from the day you move away but will pay national insurance for the first 52 weeks

So that's why you must complete form P85

If you do not fulfil this full tax year beyond 05/04/2023 then you rmein a UK resident and taxpayer so yes will continue to pay UK tax and national Insurance throughout and if you are then charged tax at Canada then due to the double taxation agreement out two countries have you can ask for the UK tax siffered to be matched against the Candian tax due and just pay any shortfall

If you land at 7am and leave before midnight that's NOT  a day in the UK

But if you arrived Tuesday night before midnight and ;eft Weds morning - that's a day in the UK
Thanks

Sam

Customer: replied 17 days ago.
Thanks. One last thing. If I stay in the U.K. for longer than 90 days, will I continue to only pay U.K. tax and NI?Thanks
Expert:  Sam replied 17 days ago.

Hi

Possibly that's what i asked how many ties you would have so it would be employment but you have to chive the full tax year living and working abroad still and you would then have three ties breaking the 90 day rule the employment in the UK and residency for the three years prior to the year in question

And in fact if you exceed 90 days you will be treated as resident and liable to tax on all income

Thanks

Sam

Customer: replied 17 days ago.
Hi,
Just to confirm, that would mean only paying tax in the U.K. and not in Canada?
Thanks
Expert:  Sam replied 17 days ago.

Hi

Which one ?
Thanks

Sam

Customer: replied 17 days ago.
Ok I’m confused. If I spent more than 90 days in the U.K., would I pay tax and NI in ONLY the U.K. or both U.K. and Canada?Thanks
Expert:  Sam replied 17 days ago.

Hi

If you move abroad for more than a full tax year and spend less than 90 days per full year in the UK (so less than a full year this needs to be pro rata'd) then you will not pay tax in the UK as already advised and will pay tax in Canada only

If you exceed the 90 days then you will pay tax in the UK (as treated as resident as exceeding the permitted days as per the UK statutory tests for having three ties) and in pay it in Canada as there more than 90 days but the UK tax you pay can be offset against the Canadian tax position (also already advised )

Thanks

Sam