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Employee moving to Canada but still employed by UK

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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!

Replies (17)

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By Accountant A
06th Dec 2019 17:03

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.

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By carnmores
07th Dec 2019 16:49

silly comment

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By Accountant A
07th Dec 2019 23:09

carnmores wrote:

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.

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By carnmores
07th Dec 2019 23:21

Your comment adds nothing to the thread.

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By carnmores
08th Dec 2019 09:39

apologies duplicate

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By carnmores
08th Dec 2019 09:40

rural broadband

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By Wanderer
06th Dec 2019 17:11

As the FC in a £7m turnover company and 60+ employees you should really ask your own professional advisers.

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By Tim Vane
07th Dec 2019 09:44

Good luck asking HMRC. That’ll work well for you.

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By SteLacca
07th Dec 2019 11:05

For PAYE purposes, you carry on regardless unless and until HMRC tell you differently.

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By carnmores
07th Dec 2019 16:44

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

https://www.taxcafe.co.uk/non-resident-offshore-tax.html

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By Accountant A
07th Dec 2019 23:11

carnmores wrote:

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

https://www.taxcafe.co.uk/non-resident-offshore-tax.html

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.

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By carnmores
07th Dec 2019 23:19

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

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By Matrix
08th Dec 2019 06:58

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.

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By carnmores
08th Dec 2019 08:01

Morning Matrix
Have you read that book or perhaps the fantastic pension magic. I think you are being a little unfair ;-)

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By Matrix
08th Dec 2019 08:22

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?

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By carnmores
08th Dec 2019 09:42

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

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Replying to Matrix:
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By carnmores
08th Dec 2019 09:47

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

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