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SRT - Residency Query (Significant Breaks)

SRT - Residency Query (Significant Breaks)

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Old Jul 12th 2015, 8:08 pm
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Default SRT - Residency Query (Significant Breaks)

Hi

I was wondering if anyone knows the tax system in the UK well and can help with what I hope is a simple query.

I moved out the middle east at the end of March to work full time until at least June next year. I will make sure i am not in the UK for more than 90 days.

I am currently in the UK for a couple of months for personal reasons and will work for some of that time (but no more than 30 days.)

I am a bit worried that this 2 months will count as a significant break if i am here for more than 31 days. I wonder if I get a cheap flight to europe and work for 3 hrs abroad, should i be ok?

Any help much appreciated before I speak to a financial adviser.

Kind regards

Tim
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Old Jul 13th 2015, 10:19 am
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Default Re: SRT - Residency Query (Significant Breaks)

What counts is that you do not exceed your overall limit for days spent in the UK in the tax year. (And I do advise on tax issues professionally.)

A guide to the SRT is on my blog: here: Information on the new UK Statutory Residency Test | Financial Planning in the UAE

You'll also find that most "advisers" in the GCC are salespeople and can't assist with tax issues and most UK advisers won't deal with these issues for expats and won't be familiar with them. The same applies to most UK accountants as expat tax issues are not in their remit.
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Old Jul 13th 2015, 7:16 pm
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Default Re: SRT - Residency Query (Significant Breaks)

Originally Posted by Meow
What counts is that you do not exceed your overall limit for days spent in the UK in the tax year. (And I do advise on tax issues professionally.)

A guide to the SRT is on my blog: here: Information on the new UK Statutory Residency Test | Financial Planning in the UAE

You'll also find that most "advisers" in the GCC are salespeople and can't assist with tax issues and most UK advisers won't deal with these issues for expats and won't be familiar with them. The same applies to most UK accountants as expat tax issues are not in their remit.
that Meow, that is very helpful. Just on the significant break part - i am concerned that my 2 months in a row in the UK will be my downfall.
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Old Jul 14th 2015, 2:30 pm
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Default Re: SRT - Residency Query (Significant Breaks)

Originally Posted by bigtim
that Meow, that is very helpful. Just on the significant break part - i am concerned that my 2 months in a row in the UK will be my downfall.
You just have to count the days in the UK in the tax year as that is all that really matters.
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Old Jul 15th 2015, 5:20 am
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Default Re: SRT - Residency Query (Significant Breaks)

There might be a bit more to this, since a 'Significant Break' might compromise the 'Working Full Time Overseas' automatic test:

"11. Significant Break from Overseas Work

(FA2013 Schedule 45 paragraph 29(2); HMRC Guidance Note RDR3 paragraphs 3.20)

A significant break is a period of 31 days during which the individual does not do (or would not have done but for being on annual, sick or parenting leave), more than 3 hours’ work overseas on any day."

Source is here.

Also make sure that you work sufficient hours in the tax year and that a sufficient number of these hours are worked overseas, and both can evidence if asked.

I'd get specialist advice if I were you, and set aside money just in case things don't go to plan.
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Old Jul 23rd 2015, 10:43 pm
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Default Re: SRT - Residency Query (Significant Breaks)

Originally Posted by Johnnyboy11
There might be a bit more to this, since a 'Significant Break' might compromise the 'Working Full Time Overseas' automatic test:

"11. Significant Break from Overseas Work

(FA2013 Schedule 45 paragraph 29(2); HMRC Guidance Note RDR3 paragraphs 3.20)

A significant break is a period of 31 days during which the individual does not do (or would not have done but for being on annual, sick or parenting leave), more than 3 hours’ work overseas on any day."

Source is here.

Also make sure that you work sufficient hours in the tax year and that a sufficient number of these hours are worked overseas, and both can evidence if asked.

I'd get specialist advice if I were you, and set aside money just in case things don't go to plan.
a belated thanks Johnnyboy and Meow. I have taken some advice as recommended and was advised to work outside the UK even if for a day during my time in the UK
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