Posted: Wed Aug 20, 2008 9:10 am-
Look at this way, under the social security agreement your CPP contribution will be massive so you'll be able to retire in no time.
And if you believe that I've got a bridge at Lake Havasu to sell you.
I have to say one of the things I like about the Canadian tax system is that it is much more transparent than either the UK or US tax systems, because most of the tax is derived from income tax rather than social security taxes. Which is probably why they did it that way, to make it a tax advantage to live in Canada without actually lowering the overall tax rates.
Because in fact you pay more tax overall in the UK than you would have in Canada, but by remaining a tax resident in Canada you pay even more tax, so it encourages you to move home, sort of, but I think this theory doesn't quite work if you move to the UK because moving your tax home there is relatively simple compared to the US.
I would suggest you simply move your tax home to the UK and sever all residential ties to Canada. It's not like with the US where there is an enormous amount of paperwork to keep track of and they get their knickers in a twist if you move home later on.
If you've got an RRSP you're worried about you might want to check how they're treated under the tax treaty though because you may have problems with interest/distributions/dividends etc. in the RRSP if you cease to be a Canadian tax resident.
If you still have other Canadian source income you can just file a non-resident T1 to cover it and claim a tax credit in the UK.
If you don't move your tax home to the UK (and assuming you still have Canadian income, otherwise it's a moot point), you still have to make CPP contributions in Canada and your UK employer also has to do NI deductions. You could at least get rid of the CPP contributions by moving your tax home to the UK.
This is probably worth having a read of but I think it basically says what I've just said as your employer is in the UK:
http://www.dwp.gov.uk/lifeevent/benefits/recip_...05/sa20-oct05.pdf_________________
Steve.