Question about tax when returning to the UK
Apr 25th 2023, 10:23 am
#1
Just Joined
Thread Starter
Joined: Apr 2023
Posts: 6
Question about tax when returning to the UK
Hi, I hope someone can clear something up for me! When returning back to reside in the UK, I understand that if I spend 183 days back in UK inside the tax year (April 6 2023 to April 5 2024) then I'll be liable for tax (self-employed self-assessment). But at which point will you pay tax? Does it start on the day you return to the UK? If so, how do you prove your return date. Or will it mean paying tax on income inside the entire tax year even if I was not resident for several months? Any help will be much appreciated.
Apr 25th 2023, 12:36 pm
#2
Just Joined
Thread Starter
Joined: Apr 2023
Posts: 6
Re: Question about tax when returning to the UK
It's ok, no need to answer! I've found out the info but will leave this here in case anyone else finds it useful. So basically my understanding is I will qualify for a split tax year and will pay taxes starting from when I either get a rental contract or purchase a house after arriving in UK.
Apr 25th 2023, 2:08 pm
#3
BE Enthusiast
Joined: Jun 2015
Location: France
Posts: 862
Re: Question about tax when returning to the UK
Do you mind saying where you got that information?
It doesn't sound entirely plausible to me. It would mean, for example, that a person didn't count as tax resident in the UK if they were present in the country but simply staying with a relative or in an Airbnb.
Surely when it comes to determining the date from which you're liable to tax in the UK, what matters to HMRC is dates of entry into the country, number of days spent in the country in any given tax year, number of ties with the country. I understood it was a pretty complicated calculation and not simply a question of whether you spend 183 days in the UK in any given tax year.
It doesn't sound entirely plausible to me. It would mean, for example, that a person didn't count as tax resident in the UK if they were present in the country but simply staying with a relative or in an Airbnb.
Surely when it comes to determining the date from which you're liable to tax in the UK, what matters to HMRC is dates of entry into the country, number of days spent in the country in any given tax year, number of ties with the country. I understood it was a pretty complicated calculation and not simply a question of whether you spend 183 days in the UK in any given tax year.
Apr 25th 2023, 2:57 pm
#4
Just Joined
Thread Starter
Joined: Apr 2023
Posts: 6
Re: Question about tax when returning to the UK
Yes it is very complex and everyone should seek full professional advice. But this issue relates to which point is classified as taxable for self-employed assessment once entering the country to become a tax resident half way through the tax year. Being a tax resident is not the issue. Tax residency is established. The issue is the starting point for paying tax. And apparently it isn't necessarily the entry date. There is something called 'split year treatment under the only home test'. The info came from an accountant. It also seems the start date for tax status is complicated by the amount of work done in the country and also sufficient UK ties. I suggest reading more about it or seeking advice if it might relate to you.
Apr 25th 2023, 3:21 pm
#5
BE Forum Addict
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,131
Re: Question about tax when returning to the UK
Yes it is very complex and everyone should seek full professional advice. But this issue relates to which point is classified as taxable for self-employed assessment once entering the country to become a tax resident half way through the tax year. Being a tax resident is not the issue. Tax residency is established. The issue is the starting point for paying tax. And apparently it isn't necessarily the entry date. There is something called 'split year treatment under the only home test'. The info came from an accountant. It also seems the start date for tax status is complicated by the amount of work done in the country and also sufficient UK ties. I suggest reading more about it or seeking advice if it might relate to you.
When my wife and I returned from the USA then we were resident for tax purposes the day we landed, and we also filed a split year return when we came to file our self-assessment HMRC tax returns the following year, the bulk of our income coming from US pensions. We made sure to take our discretionary income from investment and retirement accounts in the weeks prior to the date we landed.
Apr 28th 2023, 5:08 am
#6
BE Enthusiast
Joined: Jun 2015
Location: France
Posts: 862
Re: Question about tax when returning to the UK
Yes it is very complex and everyone should seek full professional advice. But this issue relates to which point is classified as taxable for self-employed assessment once entering the country to become a tax resident half way through the tax year. Being a tax resident is not the issue. Tax residency is established. The issue is the starting point for paying tax. And apparently it isn't necessarily the entry date. There is something called 'split year treatment under the only home test'. The info came from an accountant. It also seems the start date for tax status is complicated by the amount of work done in the country and also sufficient UK ties. I suggest reading more about it or seeking advice if it might relate to you.
Best of luck with everything.
