Sizer & Co Accountants - UK Tax For Expats (SRT)
Statutory Residence Test (SRT) - How does it affect you?
** HMRC introduce Statutory Residence Test (SRT) effective 2013/14 tax year **
- UK resident
- UK ordinarily resident
- UK resident and domiciled
- Temporarily resident
- Not resident
- Not ordinarily resident
- UK resident but not domiciled
- Dual resident of the UK and another country
The UK residency rules changed and now involves the Statutory Residence Test (SRT).
Your UK residence status affects whether you need to pay tax in the UK on your foreign income.
Whether you are UK resident usually depends on how many days you spend in the UK.
Various tests are performed to see if you have ties such as home, work, family etc. in the UK.
These may well class you as UK resident for tax purposes regardless of where you reside.
If classed as UK resident you would then be taxed on your worldwide income so it is very important that your individual circumstances are dealt with correctly to protect your residency status and exposure to UK taxation.
We strongly advise that you seek professional advice in relation to this.
Residency is a complex issue so let us take care of it for you.
The number of days spent in the UK usually determines your UK residence status
COVID-19 Have you broken your UK Non-resident status?
HMRC have stated that they will be scrutinising the 2020/21 and 2021/22 tax years due to COVID-19 and the impact on an individuals residence status.
During these tax years if you were stuck in the UK due to the following:
- Quarantined or advised by a health professional to self-isolate in the UK due to the virus
- Were advised by official Government advice not to travel from the UK due to the virus
- Were unable to leave the UK due to the closure of international borders
- Were asked by your employer to return to the UK temporarily due to the virus
HMRC will consider the above circumstances as being 'exceptional' and you can disregard up to 60 days of those spent in the UK as a result of this.
There has been NO extension to the maximum limit of the number of days which can be disregarded, which remains at 60 days despite the scale of the pandemic. HMRC have also confirmed that rules surrounding a "significant break" from overseas work will NOT be relaxed.
If you have any concerns as to whether this has affected your UK Non-resident status contact us today for a free, no obligation, competitive quote.
There are no hidden costs, what we quote is what you pay.
You will be given a FIXED FEE for a professional service tailored to your personal requirements.
HMRC caps the number of days which can be disregarded to 60 days regardless of border closures