Self-employed in Canada

If you work as a self-employed person in Canada but remain ordinarily resident in the UK, you will have to pay UK Class 2 contributions, unless you have been told you do not have to because you do not earn enough. The leaflet, National Insurance contributions for self-employed people with small earnings (CF10), will tell you more about this. You can get a copy from your Jobcentre Plus office. If you are over pension age (65 years for a man, 60 for a woman), you will not have to pay either (see State Pension for information on State Pension age).

You will not have to pay contributions to the Canada Pension Plan. To make sure that you are not asked to pay, apply to the HMRC Residency in Newcastle for a certificate or letter confirming your UK National Insurance liability. If you remain resident in the UK for tax purposes you may also have to pay Class 4 National Insurance on your business profits taxable in the UK.

If you are self-employed in Canada and ordinarily resident there, you will be liable for contributions to the Canada Pension Plan.

Note: If you are working for an employer in one country and are simultaneously self-employed in the territory of the other, you will not be liable to pay contributions to both countries’ schemes for the same activity. You will be subject to the legislation of either the UK or Canada, depending on which of the two countries you are ordinarily resident in.