# Temp Contract in UK from Canada?



## BigNose (Oct 14, 2014)

Hi,

Does anyone have any experience of working in the UK on a temp (e.g. 6 month contract)?

I am a PR, British passport holder, been in Canada since 2007, wife and mortgage here so I believe I am a factual resident which means the CRA go after my worldwide income.

I have an incorporated company here in Canada.

I believe I have a few options:

1. Try and use my Canadian corporation to get a gig in UK and get UK employer or agency to pay invoices I raise. I don't think this is an option as all agencies are wary of foreign, offshore companies - worried about money laundering and tax avoidance. This would be great if I could do it as I would be able to expense flights, UK travel and accommodation.

2. Use a UK umbrella company - easy to do and I would pay all my tax in the UK and get tax credit under the UK/Canada tax treaty so not have to pay much here (maybe just the difference between UK/Canada). Downside is that I can't be 'tax efficient' and pay myself a minimal wage + dividends.

3. Set up a UK Ltd company. I can then pay a small amount as salary (e.g. GBP 10,000) and the rest in dividends - naturally there will be corporation tax in UK and tax on the dividends. The crunch is that I believe I get taxed by the CRA on 100% of non-Canadian dividends so I can't be tax efficient and I am almost certainly forced down the brolly route.

Does anyone have any experience of going to work in the UK as a contractor as a Canadian factual tax resident? If so, what sort of process did you use?

Any help greatly appreciated!


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