TAX: Doctor has hospital income + Locum income under his Ltd Co. Now Job in Canada!!!

Guest007Guest007 Feels At HomeRegistered Posts: 54
Hello,

A doctor has income from his hospital under PAYE
+
He has locum income and he gets it under ltd company and gets dividends.

Now, this doctor has got a one month contract in Canada (it may be up to 3 months or longer).

What are the tax implications on this income?

Regards,

Comments

  • JodieRJodieR Experienced Mentor Registered Posts: 1,002
    As the contract is only one month long he will still be classed as resident in the UK for the whole of the 2012/13 tax year and therefore has to pay tax on his worldwide income.
    If the UK has a double taxation agreement with Canada then he may be able to reduce his UK tax bill in respect of any canadian tax paid on his earnings there.
    If the contract gets extended and he's out of the UK for an entire tax year (ie from 6 April 2013 to 5 April 2014) then he could class himself as non-resident from the day he left the UK and not be liable to UK tax on any of the canadian income, but this doesn't sound likely from your post.
  • Guest007Guest007 Feels At Home Registered Posts: 54
    Do we have double taxation agreement with Canada?

    Thank you Jodie,

    How do I find out about if the UK has double taxation agreement with Canada or not?

    Regards,
  • JodieRJodieR Experienced Mentor Registered Posts: 1,002
    In the guidance notes for the foreign income supplementary pages.
  • stevo5678stevo5678 Well-Known Cheltenham Registered Posts: 326
    By the way, if the foreign tax is greater than the UK tax you can't claim the full foreign amount.

    Restriction on DTR

    Can only claim the lower of :

    (a) The UK tax on the foreign income
    (b) The foreign tax

    The UK tax on the foreign income is the difference between:

    (a) The UK tax before DTR on all income including the foreign income
    (b) The UK tax on all income except the foreign income.

    Hope this helps.
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