Canadian in a partnership

anniem
anniem Registered Posts: 1,326 Beyond epic contributor 🧙‍♂️
in General accounting discussion
I have just taken on a new client; 4 way partnership. All is straightforward EXCEPT one of the partners is Canadian and lives in Canada.Do I carry on and register them with HMRC and obtain an NI no, or what? Not sure if they will need to produce a UK Tax Return and pay UK Tax on their share of the partnership profit.It's an online business.
FMAAT - AAT Licensed Member in Practice - Pewsey, Wiltshire

Comments

  • JodieR
    JodieR Registered Posts: 1,002 Beyond epic contributor 🧙‍♂️
    The basic rule is that non-residents are liable to pay UK tax on income arising in the UK. Looks from what you've said that this income is earned in the UK and therefore it will be liable for UK tax. I don't know that the national insurance situation would be, or where you go from here I'm afraid! He'll probably find that there's a double taxation agreement in place to prevent him being taxed again on teh income in canada

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