# Living in Canada as a resident, UK income from UK clients...tax questions....



## willstar (Mar 5, 2014)

Hi All

I have been told this a great forum to use for general questions for Expats!

I need help to work out what to do with uk income while in Canada. I am self employed and edit images for a UK client but live in Canada. I am paid in UK pounds and currently move the money to my Canadian account and claim the tax as foreign income when it comes to tax season here (which I understood was the correct way to do it)

However, I have a letter from the HMRC saying I didn't file a tax return for last year (I told them I had emigrated but assume they just didn't update their records) so now I am wondering should I be claiming the income in the UK which would mean being taxed in the UK also. I have a UK bank account where the money is paid into and then sent to Canada. (It is not a lot of money but I still claim it as income here).

To clarify, the work I do can be done anywhere, i.e I could be anywhere in the world and still work so I just need to work out if I am paying the taxes correctly!

ALSO - Should I still pay NI in the UK??? 

Thank you for any help! (any websites to look at would help)

Will.


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## Auld Yin (Mar 10, 2009)

Canada and UK have a tax treaty. Any tax paid in the UK is deductible from any tax owed in Canada. This eliminates double taxation.


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## JGK (Dec 12, 2009)

I assume you were filing self assessments in the UK which is why you got the query.

Other than that UK tax is a black hole I only ever did PAYE.

As for NI, i kept paying in until i reached the 30 year mark so I qualify for the full state pension.

You can do an assessment and even pay a lump sum to build your contribution years up if you want, I was paying ~7 pounds a month in NI when i completed my 30 yrs payments.


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## willstar (Mar 5, 2014)

*thanks with extra questions!*

Thank you for the info!

So I should continue to pay NI? 

I am just not sure if I should pay the tax on the income in the UK or in Canada? I understand there is a tax treaty but I just need to work out if its ok to move the money from the UK to Canada and declare it as income here OR declare the income in the UK and then move it? 

Hope that makes sense!

It may be a question for the tax office but if I can get an answer here it would help!

Thank you either way!

Wills.


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## Brockthebadger (May 11, 2012)

Hi
We have our pensions paid from the UK and pay tax on it here in Canada. We treat it, as you do, as foreign income. I believe we had to determine in which country we were "Resident" for tax purposes. It is not linked to your status but where you deem to be "home".

Having made that declaration to UK tax we no longer had any correspondence from them.

In terms of NI you can get a statement of your contributions and the pension you would receive. You can then determine whether to continue paying NI and for how long. It all depends on your contributions. Check out their website.

Hope that helps.


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## willstar (Mar 5, 2014)

*thank you*

Thank you for the info, really helpful!

Wills.


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## nikkisizer (Aug 20, 2011)

Hello Wills,

If you are classed as tax resident in Canada that will be where you will declare your self employed income.

However, if HMRC issue you with a tax return you will still need to file it in order to avoid late filing penalties.

With regards to national insurance contributions, you can pay voluntary Class 2 NIC's whilst you are abroad, please refer to the link below for further information:

Voluntary national insurance contributions - The Pensions Advisory Service (TPAS)


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