Help Tax Issues!

Katy P
New Member



Joined: 15 Jul 2008
Posts: 2
Location: London

Posted: Tue Jul 15, 2008 7:11 am

 

---

Hiya. I've been living in the UK for just about a year. I've filed a Canadian Tax Return and I'm on PAYE here, so apparently I don't need to file here in the UK. My problem is that back in Canada I had Tuition Tax Credits that basically meant I would get all the tax I've paid in my first year of working back. On my Canadian Tax Return, it does say that I'm owed all my UK tax back, but I have no idea what I do now to get the UK tax. Can anyone help me?

---

Joanne
Senior Member



Joined: 18 Jul 2003
Posts: 122
Location: Stockport

Posted: Tue Jul 15, 2008 12:16 pm

 

---

I am not sure I understand.are you saying that you paid income tax in Canada and UK for the same income (that you received in the UK )?

---

Katy P
New Member



Joined: 15 Jul 2008
Posts: 2
Location: London

Posted: Tue Jul 15, 2008 2:11 pm

 

---

No I've just paid tax in the UK. Oh why do I have a feeling that I've totally screwed this up! I went to a professional back in Canada and everything when I filed my taxes.

---

Joanne
Senior Member



Joined: 18 Jul 2003
Posts: 122
Location: Stockport

Posted: Wed Jul 16, 2008 12:57 am

 

---

I am not an expert but how can you claim Tuition Tax Credits which is a Canadian tax credit on your UK income tax? I would not have though that would be possible.

I think you should try to find an accountant in the UK who also knows about the Canadian tax system to find out if you can effectively claim something back from your UK tax.

I think also it can make a difference if you are here just for a year (I think some people claim it back once they are back in Canada) or if you are here for longer.

---

iburrows
New Member



Joined: 16 Jul 2008
Posts: 2
Location: UK

Posted: Wed Jul 16, 2008 4:56 am

 

---

Katy,

Keep us updated as I would be very interested to hear the outcome of this

Ian
_________________
London Jobs? www.Careers-Jobs.eu has 1000's of UK Jobs including Jobs In London

---

Steven
CanuckAbroad VIP



Joined: 28 Sep 2007
Posts: 1589
Location: Calgary

Posted: Wed Jul 16, 2008 10:11 am

 

---

I'm not quite sure what you're on about either, but if you've filed taxes in Canada and you need to claim tax credits in Canada, it sounds as though your tax home is Canada.

In that case you need to file for a tax treaty exemption to exempt you from paying UK income taxes altogether.

http://www.hmrc.gov.uk/cnr/form_canada.htm

You can use that form to claim back any UK income tax withheld under PAYE already.

You can also file HMRC Form R105 with your bank so they do not do withholding on your bank interest as well.

If you haven't done this before I suggest you give them a call at the office in Nottingham, as the NI exemption is a bit tricky. I can't remember but I think you may need to get some CPP paperwork.
_________________
Steve.

---

klynch
Junior Member


UK & CANADIAN TAX

Joined: 07 Feb 2008
Posts: 17
Location: Cheshire

Posted: Tue Jul 22, 2008 7:20 am

 

---

I am a UK chartered accountant and Canadian CGA offering UK and Canadian tax services to expats. Check out my website at lynch.pro

Many of my Canadian clients who have worked in the UK have found that their employers have deducted too much tax through the PAYE system. It may be worth your while to file a UK tax return and apply for a refund. My fees are reasonable.

Give me a call if I can be of help.

Kieran

---

Steven
CanuckAbroad VIP



Joined: 28 Sep 2007
Posts: 1589
Location: Calgary

Posted: Tue Jul 22, 2008 1:18 pm

 

---

I'm wrong about this bit, I was confused with my pension claim, you are subject to PAYE but at a lower rate, and you can claim a foreign tax credit in Canada to cover any tax you paid in the UK (up to a point, the higher rate of 40% kicks in around $72,000 which is a much lower level than the higher rates in Canada).

But anyway, calling the non-residents dept. in Notts. is the place to start in any event.
_________________
Steve.

---