Query re. working for a foreign company

Hi there, I am a dual British / Canadian citizen currently living in Canada, but very soon to be moving back to the UK. The company I'm working for here in Canada has agreed to keep me on, working remotely, after I move back to the UK. They are exploring two options in terms of how I would be paid... Option 1: I would resign from my current employment with them, and become an overseas contractor. They would transfer payment to my UK bank account monthly. Option 2: I would continue to be officially employed by them, but would be based in the UK. They would pay my salary into my Canadian bank account, and I would then transfer this money over to my UK bank account. I presume option 1 would be fairly straightforward from a UK self-assessment / taxation perspective. Presumably I would be registered with the Inland Revenue as self employed, and my payments from them would constitute UK self employment income, with taxes applied accordingly. Is that correct? Option 2 feels a little less straightforward to me. If they paid me, as an employee, into a Canadian account, and then I transfer the funds into a UK account, what would be required from me in terms of my UK self assessment? Would I be classified as employed by a foreign company, with my salary classed as foreign income? And in this scenario I would assume that I would have (Canadian) tax deductions on the initial pay. Would I then be required to pay any further taxes on this in the UK? Thank you in advance.

Hi ,
 

There is nothing from a HMRC perspective, to prevent you remaining an employee of this company and declaring foreign employment income in your tax return.  You should consider the Canadian Revenue Service rules for a Canadian employer.  As you would be UK resident, you would be taxable solely in the UK on this income, either as an employee of the Canadian company or as self employed.  Both options require the completion of a UK self assessment tax return every year.  Thank you .

Great, thanks so much. Appreciate your assistance in this matter. Thanks again!