In short: A UK doctor moving to Canada goes from NHS employee to self-employed business owner, and a Medical Professional Corporation (a Canadian-controlled private corporation) taxes the first $500,000 of practice income ($600,000 in Saskatchewan) at roughly 9% to 12% instead of a personal rate of 48% to 55%. ZAI Wealth Management's first-year roadmap: open separate corporate banking for billings and expenses, set a salary-and-dividend mix and leave the surplus inside, and keep passive investment income under $50,000 a year to protect the small business rate.
The big shift
In the NHS you're salaried, with PAYE, paid leave and a pension. Most Canadian physicians are self-employed: they bill the provincial health plan and pay their own overhead, staff, accounting and benefits.
How a Medical Professional Corporation helps
A Medical Professional Corporation is a Canadian-controlled private corporation (CCPC). It pays the small business rate of roughly 9% to 12% on its first $500,000 of active income ($600,000 provincially in Saskatchewan), instead of top personal rates of roughly 48% to 55%.
Your first-year roadmap
- Separate the money: a dedicated corporate bank account for billings and practice expenses.
- Plan your pay: a mix of salary (for RRSP room and CPP) and dividends, leaving surplus in the corporation.
- Invest the surplus carefully: keep passive income under $50,000 a year to protect your small business rate.
Timing matters too: see when to incorporate.
Run your own numbers with our Physician Tax Savings Calculator.
For illustration and general information only. Tax rules change and every situation is different, so speak with your advisor and accountant before acting on anything here.
Common questions
Can a UK doctor transfer their NHS pension to Canada?
Generally no. The NHS Pension Scheme is an unfunded public service scheme and UK rules restrict transfers out, so it cannot be moved into an RRSP or other Canadian registered plan. Most physicians leave it deferred and inflation-linked, to be paid from UK retirement age, with the Canadian tax treatment set by the Canada–UK tax treaty. ZAI Wealth Management builds the Canadian replacement through the Medical Professional Corporation, RRSP contributions and, after 40, an Individual Pension Plan.