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Moving to Canada but retaining UK clients & being paid into UK account

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Thewannabecanadian

Hi
Husband is a dual Canadian/English citizen born in the UK but moving to Canada next month. He is self employed as a web developer in the UK and will retaining the same clients.
Can anyone advise us on whether we can and should continue to get paid into a UK bank account and transfer the necessary money to a Canadian bank account out there and what the tax repercussions are of doing that.
Alternatively if we move to him being paid directly into a Canadian account, would that affect how his clients pay and is it expensive for us fee-wise?

Any help or advice appreciated!

Alec Inglis

There are two tax issues.d

1. Sales tax..both federal (GST) and provincial (if they charge it in the province/place you decide to become resident. ) These two are the name given to what you presently call VAT. They have almost identical rules and are applicable to on goods and services you sell in Canada to both residents and non-residents. However, it is not applicable on goods and services you sell to non-residents outside of Canada. In other words, you should not pay sales tax on sales made to your husband's UK clients after he takes up residency. In other words, drop the VAT he is now charging (Canada requires that GST/PST amounts be indicated clearly on the invoices, but the UK includes them in the price.

It's your responsibility to register for GST before you do business if your turnover exceeds the $75,000 threshold or is likely to exceed it. In Quebec that turnover need only exceed $35,000

2. Income Tax.. ALL Canadian residents pay income (and most often provincial income taxes) on WORLD income.

Thewannabecanadian

Thanks. Since my husband has a ltd company he does charge or claim VAT.

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