Tax in the UK: What Canadians Need to Know in Their First Year

26 August 2026

UK tax runs on a different calendar and a different bracket structure to Canada's. Here's the practical version of what changes in your first year, not the full technical detail, that's what an accountant is for.

The tax year runs April to April

The UK tax year runs 6 April to 5 April, not the calendar year Canada uses. If you move partway through the UK tax year, the year is usually split into a non-resident part and a resident part, so foreign income before your move typically isn't taxed as UK income, subject to specific conditions.

Income tax bands for 2026/27

How UK tax residency gets decided

The UK uses the Statutory Residence Test rather than a simple day-count rule. Broadly, you're automatically UK tax resident if you spend 183 or more days in the UK in the tax year, if the UK is your only home for 91 or more consecutive days with at least 30 of those spent there, or if you work full-time in the UK. Most people arriving on a work visa and settling in will meet this well within their first year.

Do you need to file a Self Assessment return?

If you're a standard employee paid through PAYE (Pay As You Earn), HMRC collects your tax automatically through your payslip and you generally don't need to file anything separately. Self Assessment becomes relevant if you have foreign income (including RRSP or TFSA income), are self-employed, are claiming split-year treatment for the year you arrived, or meet a few other specific triggers. Use gov.uk's own checker if you're unsure whether it applies to you.

Key Takeaways

The UK tax year runs 6 April to 5 April, a different calendar to Canada's calendar-year system.
The first £12,570 you earn is tax-free (the Personal Allowance), then 20%, 40% and 45% bands apply above that.
Residency is decided by the Statutory Residence Test, not a simple day count.
Holding RRSP or TFSA accounts as a UK resident can trigger Self Assessment. Get advice if this applies to you.

Frequently Asked Questions

Will I be taxed on income I earned in Canada before I moved?

Usually not, thanks to split-year treatment, which taxes you as UK-resident only from the point you actually arrive and settle, not for the whole tax year. Specific conditions apply, so check your situation with an accountant if it's not straightforward.

What happens to my RRSP and TFSA once I'm a UK tax resident?

It's genuinely different treatment for each, and worth its own dedicated read rather than a quick answer here, since getting it wrong on a TFSA specifically can mean an unexpected UK tax bill.

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