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Posted Tue, 24 Jan 2023 00:37:21 GMT by Tom
Hello everyone! I have a quick question if I may! Background: As a UK resident I worked in Canada for Canadian employer (spent in Canada during tax year fewer than 180 days) and hence I would like to file a self-assessment. My Canadian employer deducted income taxes from my salary but also mandatory contributions to Canada Pension Plan (CPP ) and, also mandatory, Employment Insurance (EI) - both can be thought of as an equivalent of UK's National Insurance. Question 1: On form SA106 [Foreign] page 6 Section [Foreign tax paid on employment, self-employment and other income] Column C I am expected to provide foreign tax paid. Notes accompanying the form state 'Do not include foreign tax paid on overseas social security contributions or healthcare insurance premiums in this amount of tax.' I am not sure I understand what that means. Does it mean I only provide foreign federal and provincial income taxes deducted without CPP or EI contributions? Or do I include ALL of the deductions. Question 2: If the answer to question 1 is YES, meaning I should not include CPP or EI deductions, do I have to include those somewhere? Question 3: Does Foreign Tax Credit Relief (FTCR) also include relief/credit for National Insurance, or will I have to pay it? Thanks in advance!
Posted Thu, 26 Jan 2023 12:22:39 GMT by HMRC Admin 32

If there is a double taxation agreement between UK and another foreign country, then a Foreign Tax Credit Relief (FTCR) can be claimed.
  1. The only tax you can declare on the tax return is a Foreign Income Tax.  Not healthcare insurance or overseas social security etc
  2. There is no relief available for payments to healthcare insurance or overseas social security etc
  3. No, FTCR only covers a deuction of Foreign Income Tax.
Have a look at:

Relief for Foreign Tax Paid 2021 (HS263)

Thank you.

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