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Looking for tax advice - Definition of full tax year & residence test

Looking for tax advice - Definition of full tax year & residence test

Old Apr 14th 2014, 7:09 am
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Default Looking for tax advice - Definition of full tax year & residence test

Hi all,

I have researched and searched for answers on this and I'm still confused

I have a job offer and all being well will head out to the UAE in a months time.

The contract is until next April meaning I wont be out of the country for a full tax year but from what I've read in the Statutory Residence Test Guidance Note I can work for 30 days in the UK, spend less than 90 days back in the UK and qualify for the third automatic test eg Non resident. There is no mention of working away for a full tax year - I'll be away for 11 months and have worked less than 30 days in UK

However on HMRC's website http://www.hmrc.gov.uk/incometax/tax-leave-uk.htm it says you must be out of the UK for a full tax year.

My question is will leaving in a months time having worked for less than 30 days since April 6th in the UK and then staying outside of UK until the end of the tax year mean I will be liable for UK income tax or not???

If this is not the place for tax questions can someone advise of a professional who can assist?

Many thanks
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Old Apr 14th 2014, 8:55 am
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Default Re: Looking for tax advice - Definition of full tax year & residence test

You have to be out of the UK for a full tax year, from 6th April one year until 5th April the next to be considered UK non-resident for tax purposes for the year.

http://financialuae.me/2013/02/12/in...esidency-test/
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Old Apr 14th 2014, 9:04 am
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Default Re: Looking for tax advice - Definition of full tax year & residence test

Originally Posted by Meow View Post
You have to be out of the UK for a full tax year, from 6th April one year until 5th April the next to be considered UK non-resident for tax purposes for the year.

http://financialuae.me/2013/02/12/in...esidency-test/
Thanks for the reply.

See im looking at this

Part A (conclusive non-residence)

Individuals will be non-resident for a tax year if:

They are in the UK for fewer than 46 days (Arrivers) or 16 days (Leavers) in the tax year; or
They leave the UK for full-time work abroad – they must be in the UK for fewer than 91 days and can spend no more than 30 days working in the UK in the tax year.
and I cant see on the Residence Test where it syas you have to be out of the country for the full tax year? Where is it? I thought as long as id left before working for more than 30 days in the UK and didnt come back for more than 90 I'd be ok? This is deffo not the case? as it means the deal is no good for me
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Old Apr 15th 2014, 4:31 pm
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Default Re: Looking for tax advice - Definition of full tax year & residence test

I'm really amazed you're willing to take advice from random people on the interweb when you could be risking thousands of pounds' worth of fines in tax bills.
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Old Apr 15th 2014, 4:44 pm
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Default Re: Looking for tax advice - Definition of full tax year & residence test

Originally Posted by seven seas View Post
I'm really amazed you're willing to take advice from random people on the interweb when you could be risking thousands of pounds' worth of fines in tax bills.
I also asked if anyone could recommend a professional.
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Old Apr 16th 2014, 5:13 am
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Default Re: Looking for tax advice - Definition of full tax year & residence test

Originally Posted by gregreh View Post
Hi all,

I have researched and searched for answers on this and I'm still confused

I have a job offer and all being well will head out to the UAE in a months time.

The contract is until next April meaning I wont be out of the country for a full tax year but from what I've read in the Statutory Residence Test Guidance Note I can work for 30 days in the UK, spend less than 90 days back in the UK and qualify for the third automatic test eg Non resident. There is no mention of working away for a full tax year - I'll be away for 11 months and have worked less than 30 days in UK

However on HMRC's website http://www.hmrc.gov.uk/incometax/tax-leave-uk.htm it says you must be out of the UK for a full tax year.

My question is will leaving in a months time having worked for less than 30 days since April 6th in the UK and then staying outside of UK until the end of the tax year mean I will be liable for UK income tax or not???

If this is not the place for tax questions can someone advise of a professional who can assist?

Many thanks
Read HMRC6 Section 8.5 for the definition of how to become UK non-resident by leaving the UK to work full time overseas. It's a bit dated now, since some further clarifications/ requirements were introduced in April 2013 concerning time spent visiting or working in the UK (To check these, search the internet for 'uk statutory residence test flowchart' and take your pick).

Here's HMRC6 Section 8.5, with the important bit higlighted:

8.5 Leaving the UK to work abroad as an employee
If you are leaving the UK to work abroad full-time, you will only become
not resident and not ordinarily resident from the day after the day of your
departure, as long as:
• you are leaving to work abroad under a contract of employment for at
least a whole tax year

• you have actually physically left the UK to begin your employment
abroad and not, for example, to have a holiday until you begin your
employment
• you will be absent from the UK for at least a whole tax year
• your visits to the UK after you have left to begin your overseas
employment will
– total less than 183 days in any tax year, and
– average less than 91 days a tax year. This average is taken over the
period of absence up to a maximum of four years.

Last edited by Johnnyboy11; Apr 16th 2014 at 5:16 am.
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Old Apr 16th 2014, 5:44 am
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Default Re: Looking for tax advice - Definition of full tax year & residence test

Originally Posted by gregreh View Post
I also asked if anyone could recommend a professional.
Hi gregreh,

You'll be treated as non-resident from the day after you leave the UK if you can show:

- you left the UK to go abroad permanently or your absence and full-time work abroad lasts at least the whole tax year
- your visits to the UK are less than 183 days in a tax year and average less than 91 days a tax year over a maximum of four consecutive years

The residence part of document HMRC6 is out of date and was replaced with RDR3 in May 2013 effective from the 2013/14 tax year.

Last edited by TopNik; Apr 16th 2014 at 5:51 am.
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Old Apr 16th 2014, 9:35 am
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Default Re: Looking for tax advice - Definition of full tax year & residence test

Originally Posted by Norm_uk View Post
I am under the impression it has a lot to do with not wanting to pay professionals for their time and advice. That's a common theme here we see over and over again.

N.
And when a professional does offer free advice posters rarely appreciate it. People only want to read the answers that suit them.
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Old Apr 16th 2014, 9:43 am
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Default Re: Looking for tax advice - Definition of full tax year & residence test

Not at all. The information is conflicting and i just wanted some advice. The advice you gave is now incorrect and i was just asking for clarification. No one has recommended me a professional yet else I would have spoken to them, I have no problem paying for professional advice I just don't know who to go to with regards to a specialist on tax for expats.

People are very touchy around here. The whole idea of a forum is to ask for help and advice. Not shoot someone down for asking or daring to question something
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Old Apr 16th 2014, 10:25 am
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Default Re: Looking for tax advice - Definition of full tax year & residence test

Chill out jeez

I spoke with HMRC on Tues and they said HMRC6 is now out of date or only applicable before 2013/14, hence my confusion.

Nice friendly forum you've got going on here
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Old Apr 16th 2014, 10:39 am
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Default Re: Looking for tax advice - Definition of full tax year & residence test

Thanks topnik. I hadn't seen youre website. I'll be in touch
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Old Apr 16th 2014, 10:47 am
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Default Re: Looking for tax advice - Definition of full tax year & residence test

Originally Posted by gregreh View Post
Thanks topnik. I hadn't seen youre website. I'll be in touch
You are most welcome, I look forward to hearing from you!
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Old Apr 16th 2014, 10:48 am
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Default Re: Looking for tax advice - Definition of full tax year & residence test

Originally Posted by gregreh View Post
Chill out jeez

I spoke with HMRC on Tues and they said HMRC6 is now out of date or only applicable before 2013/14, hence my confusion.

Nice friendly forum you've got going on here
Try reading. I did not quote HMRC 6
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Old Apr 16th 2014, 10:54 am
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Default Re: Looking for tax advice - Definition of full tax year & residence test

Well I must be blind because I can't see anywhere on the link you provided that you need to be out of the UK for the full tax year

As far as I could see only HMRC6 quotes that. The advice you posted is from rdr3?

Apologies for annoying you so badly!

Last edited by gregreh; Apr 16th 2014 at 10:58 am.
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Old Apr 16th 2014, 5:18 pm
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Default Re: Looking for tax advice - Definition of full tax year & residence test

Originally Posted by gregreh View Post
Well I must be blind because I can't see anywhere on the link you provided that you need to be out of the UK for the full tax year

As far as I could see only HMRC6 quotes that. The advice you posted is from rdr3?

Apologies for annoying you so badly!
always been out for the whole tax year.
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