Paying Taxes While on a Holiday Working Visa

For Canadians living / traveling in the UK

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JBamburyNew Member
Topic author
Posts: 2
Joined: 13 Aug 2008
Location: Leeds

Paying Taxes While on a Holiday Working Visa

Post Wed Aug 13, 2008 11:59 am

I am a Canadian in the UK on a holiday working visa. I have been here since Sept of 07 and I worked part of the time as a supply teacher. I am trying to figure out how/where to pay and get reimbursed for the taxes I have paid. Is that possible? I am quite lost with this so if anyone has any help for me that would be great.

Also if you have another website that has the forms and info for me that would be great.

Thankyou
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mullinskyJunior Member
Posts: 16
Joined: 4 Apr 2008
Location: London England

Post Sun Aug 24, 2008 6:38 pm

The agency you worked for should send you the income tax return form and your statement of earnings. Or if you want you could call HMRS (her majesty's revenue service) yourself. I am still waiting for my income tax return and may have to call them, they make you work for the return, hoping you just go away, lol.
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StevenCanuckAbroad VIP
Posts: 3635
Topics: 2
Joined: 28 Sep 2007
Location: Calgary

Post Sun Aug 24, 2008 9:51 pm

You can't get reimbursed for the taxes you've paid, I assume you're still a tax resident of Canada from what you're saying. You have to claim a foreign tax credit in Canada, in fact you should already have done that for tax you paid in 2007 when you filed your T1 earlier this year.

It gets complicated because of the weird tax year the UK uses, so you actually have to get a statement from whomever you work for or get hold of HMRC directly to figure out how much tax you paid up to 31st December so you know how much to put down on the CRA foreign tax credit form.

You can still go back and file a T1 adjustment to make the claim now, might want to talk to the CRA about it.

You can't claim back the NI that has been withheld, but this counts towards your CPP contributions under the social security agreement with the UK.

The general guide for the T1 explains how to claim a foreign tax credit.

If you're staying for any great length of time you're probably better off moving your tax home to the UK, i.e. you declare to the CRA on your T1 that you no longer reside in Canada and cut all residential ties to Canada (e.g. swap your driver's licence to a UK one, tell your Canadian bank you are no longer resident for tax purposes, etc.)

Then you just pay tax like any other UK resident.

As we were discussing in the other thread, because NI as a proportion of your tax is a far higher percentage than CPP is in Canada, you end up usually owing extra income tax to the CRA because of the way the tax systems are structured, because the CRA only give you a foreign tax credit for the UK income tax, not the NI.
Steve.
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