Working remotely for my UK Employer

[Edmegbc]

Hi all,

I am slightly confused as to how to proceed with a proposal from my UK employer.
I am the Canadian Citizen sponsoring my husband as PA, both currently living in the UK. We submitted our application a couple of weeks back and I included an acknowledgment letter from my employer that I am leaving the UK once we get PR (to support intent to live in Canada post PR)
My boss has suggested that I work remotely once we move back to Canada, part time, to support handover and my direct reports until they make a decision on backfill (most likely not until 2025) on a part time basis - bascially cut my hours in half to match time zones etc. Potetially anything from 3 months to a year.
Ive got no issue with this personally - would be handy to have the income and suits our situation quite well.
What I am trying to understand is the tax implications - I would assume I need to reactivate my SIN and become a tax resident in Canada again, would I need to file my Canadian taxes and declare my UK income with CRA? I would still be paid into my UK bank account and be taxed by HMRC, pay into my UK pension and National Insurance.
Company is happy to support this (as means less hassle for them) but I jsut want to make sure I can actually do this before I agree. Should I speak to Canadian and UK Accountants about this? Its not a crazy big salary I am talking about, probably works out to be about 70K Canadian per year for 20 hours a week.

 

[canuck78]

Hi all,

I am slightly confused as to how to proceed with a proposal from my UK employer.
I am the Canadian Citizen sponsoring my husband as PA, both currently living in the UK. We submitted our application a couple of weeks back and I included an acknowledgment letter from my employer that I am leaving the UK once we get PR (to support intent to live in Canada post PR)
My boss has suggested that I work remotely once we move back to Canada, part time, to support handover and my direct reports until they make a decision on backfill (most likely not until 2025) on a part time basis - bascially cut my hours in half to match time zones etc. Potetially anything from 3 months to a year.
Ive got no issue with this personally - would be handy to have the income and suits our situation quite well.
What I am trying to understand is the tax implications - I would assume I need to reactivate my SIN and become a tax resident in Canada again, would I need to file my Canadian taxes and declare my UK income with CRA? I would still be paid into my UK bank account and be taxed by HMRC, pay into my UK pension and National Insurance.
Company is happy to support this (as means less hassle for them) but I jsut want to make sure I can actually do this before I agree. Should I speak to Canadian and UK Accountants about this? Its not a crazy big salary I am talking about, probably works out to be about 70K Canadian per year for 20 hours a week.

Once you leave the UK are you legally able to work in the UK? What is your current status in the UK and what kind of visa/permit do you have? This will determine if your plan is even possible

 

[Edmegbc]

I have ILR, been here for 19 years.

 

[Edmegbc]

And I understand I lose ILR once I’ve been outside of uk for 2 consecutive years. My ILR was granted on ancestry. Suppose I could now apply for citizenship but I don’t see the point now I’m leaving (and uk passport isn’t as valueable post brexit) my husband is Irish by descent so if there is a passport for me to go for it’s that one given Ireland is still part of the eu.

 

[canuck78]

And I understand I lose ILR once I’ve been outside of uk for 2 consecutive years. My ILR was granted on ancestry. Suppose I could now apply for citizenship but I don’t see the point now I’m leaving (and uk passport isn’t as valueable post brexit) my husband is Irish by descent so if there is a passport for me to go for it’s that one given Ireland is still part of the eu.

It does appear that you would be able to work for a UK employer for the 2 years following leaving the UK as an ILR although I would verify this fact. Yes you will have to declare you UK salary in Canada and file you Canadian taxes but Canada has a tax treaty with the UK do you won’t be taxed twice on the same income.