Canadian resident uk contract

[ldn]

Hi all,

If I am a UK citizen, have a UK ltd company and a contract for a UK company until Oct 2013, but I have moved to Canada as a Canadian permanent resident (able to work remotely) - I have 3 questions for any experts.

1) Once the contract is complete, how can i transfer profits in the UK company to a Canadian company (to be setup) so I can then take money from the Canadian company when needed (and pay relevant dividend taxes in Canada).
2) If i do not take dividends/salary out and just let the invoices pay the UK company, is this declarable as worldwide income when filling out Canadian tax worldwide income forms?
3) Does this have any impact on VAT

The remote working/self employed/new immigrant aspects of my situation seem to be troublesome for all standard information I can find!

Many thanks

[SueEllen]

1) Once the contract is complete, how can i transfer profits in the UK company to a Canadian company (to be setup) so I can then take money from the Canadian company when needed (and pay relevant dividend taxes in Canada).

Answer to your 1st question -

You need to close down your UK company properly and pay all relevant taxes in the UK.
Search for threads on this forum like this

Traditionally the British and the Canadians are friendly with one another so I wouldn't be surprised if that extends to the tax authorities.

This also answers your 3rd question as during the closing process you will sort out your final VAT payment and deregister for VAT.

[ldn]

Answer to your 1st question -

You need to close down your UK company properly and pay all relevant taxes in the UK.
Search for threads on this forum like this

Traditionally the British and the Canadians are friendly with one another so I wouldn't be surprised if that extends to the tax authorities.

This also answers your 3rd question as during the closing process you will sort out your final VAT payment and deregister for VAT.

Thanks SueEllen - Can I wait to do this until after my contract ends? If so, where does that put me in terms of tax residency at the moment, am I to declare myself tax resident in UK until I close the company?

[BlasterBates]

Best speak to a Canadian accountant. I think you´re on the right lines of a Canadian company and a UK company, but only a Canadian accountant will be able to help you as it´s complicated. In my view your Canadian company should invoice your UK company for services provided to your UK company from your office in Canada.