We have an employee who is moving to Canada, but will be continuing to work for us (UK company) for a few months until we have found a replacement for him and done a handover.
From a tax perspective, I understand that he will be UK resident as he will have spent less than half the year abroad, and he will still be earning from a UK company. Is this correct? And in terms of tax and NI, do we just take the normal deductions each month, and is there likely to be any tax for him to pay in Canada while still getting the salary from us?
I'm on hold with HMRC but wanted to ask the experts first!
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You mean he doesn't give his skills for free like people on this site? How odd to want to be paid for his efforts.
silly comment
Fixed that for you: "In your opinion ....".
It's bang on the money. The cheeky s0d comes on here asking for advice on how to pay someone for their time and skills but because it's accountancy/tax related, he thinks that advice should be available for free.
As the FC in a £7m turnover company and 60+ employees you should really ask your own professional advisers.
you need to check the SRT , its possible that they qualify for split year treatment.
if you want a terrific read here is great value
you need to check the SRT , its possible that they qualify for split year treatment.
if you want a terrific read here is great value
Great idea. The OP has no clue in the first place and you are suggesting he has a stab at offering his employee advice on his residence status. Genius.
How typical of you. I just suggested that he read a well written and easily undestable book. At least it was a positive suggestion and you should not be so dismissive
I would go to your usual advisers and ask them to answer and also find out the Canadian obligations. Alternatively get the employee to find out and cover their costs.
Do not provide tax advice to the employee. Also there could be PE issues depending what the employee is doing.
Calling HMRC or reading a tax cafe book is underestimating the cross border issues.
Morning Matrix
Have you read that book or perhaps the fantastic pension magic. I think you are being a little unfair ;-)
No I have never read a tax cafe book but seem to be signing up loads of non Dom clients at the moment so may take a look, thanks.
I don’t know whether the OP’s employer would think reading this book would be a good use of time, where does it answer which UK and Canadian taxes should be applied to the employee’s earnings?
i will send you my version of last years edition if you wish or if you push me hard enough buy you the current just released version. PM me if interested
the Canadian tax year is calendar so i would think that he will be resident for 2020. KPMG state on the web that individuals resident in Canada are subject to Canadian income tax on their worldwide income, regardless of where it is earned or where it is received, and they are eligible for a potential credit or deduction for foreign taxes paid on income derived from foreign sources