I'm looking into a contract in IT (specifically software development), and the work would be done out of my home in Canada for a company based in the UK.

My questions are:

  • Is this arrangement possible?
  • Would I charge any taxes, such as GST or VAT, to the UK company?
  • Does it matter what currency I'm paid in?
  • Can you recommend any tax experts based in Canada who may be able to assist? (I've only found Canada-US experts so far...)

Any other experiences or things to be aware of (e.g. hidden costs) are welcome.

Thank you for your input.

1 Answer 1


I'm a Canadian and I've freelanced (in the advertising field) for a UK-based company. They had a Toronto office that I dealt with for the project and cheques were issued locally so that simplified things. And because this company had an office on the ground in Canada, yes, I had to charge HST. However, you do not charge GST/HST if the company has no Canadian presence. In that case you need to get the client to sign a form entitled something like "Satisfactory Evidence as Proof of Non-Residence and Non-Registration for GST/HST Purposes." (Google it for examples.) You get it signed and file it away in case CRA should ask for it. I prefer getting paid in Canadian dollars because I can deposit cheques at an ATM while foreign currency cheques require me to get in line. And I might be wrong but I believe that the exchange rate used by the bank includes a hidden fee. Also a lot of companies take 60+ days to pay and the way the CAD is trending who know how much you could lose if you're paid in pounds. I prefer wire transfers and request payment in CAD. But you may be dinged a few dollars for the privilege. I'm not sure you need a tax expert. Just report your income to CRA in CAD.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge you have read our privacy policy.

Not the answer you're looking for? Browse other questions tagged or ask your own question.