HMRC Certifcate of Tax Residency
Mar 5th 2018, 6:24 pm
#1
BE Enthusiast
Thread Starter
Joined: Aug 2012
Location: Granada Province
Posts: 549
HMRC Certificate of Tax Residency
Hi All,
A very good friend of mine in my area has lived here as a Tax Resident since 2014. He receives a Crown Pension (Police), which is taxed in the UK and declared here but not taxed,under the relevant DTA. He has NOT been back to the UK since moving here.
Without going into too much detail, he has had a terrible run of misfortune of late (nothing illegal, just lifes brickbats) and has returned to the UK last week. He was renting here, so nothing to take into account as regards CGT or anything.
Just prior to leaving, he went to see his Tax adviser here with a view to 'de registering' as a Tax resident in Spain. He was given a Modelo 030, all completed and told to get a UK HMRC ' Certificate of UK Tax Residency' on his arrival back in the UK. He has secured a rented house, set up a new UK Bank account, so therefore can evidence a permanent return to the UK.
Trouble is, on looking at the UK residency test under the Finance Act 2013, because he has been here over 183 days in the UK tax year, I can see that his only chance of getting out of the Spanish system as of last week is if he can convince the UK that he is here to stay, and in that regard the Tax person on the phone from HMRC referred to an 'Article 4' application.
In his hammered state, he failed to ask 'Article 4 of what?'.
I am no accountant, but I am trying to help him. From what I can see, if the application for a 'Certficate of Tax Residency ' in the UK cannot be issued, then HMRC have the option to give him a 'Letter of Confirmation' that they (HMRC) consider him to be a UK tax resident going forward. I cannot find an application for the Letter of Confirmation, save that it may be issued as a result of the Certificate application being processed.
Has anyone any experience of this, please?
Thanks in advance.
A very good friend of mine in my area has lived here as a Tax Resident since 2014. He receives a Crown Pension (Police), which is taxed in the UK and declared here but not taxed,under the relevant DTA. He has NOT been back to the UK since moving here.
Without going into too much detail, he has had a terrible run of misfortune of late (nothing illegal, just lifes brickbats) and has returned to the UK last week. He was renting here, so nothing to take into account as regards CGT or anything.
Just prior to leaving, he went to see his Tax adviser here with a view to 'de registering' as a Tax resident in Spain. He was given a Modelo 030, all completed and told to get a UK HMRC ' Certificate of UK Tax Residency' on his arrival back in the UK. He has secured a rented house, set up a new UK Bank account, so therefore can evidence a permanent return to the UK.
Trouble is, on looking at the UK residency test under the Finance Act 2013, because he has been here over 183 days in the UK tax year, I can see that his only chance of getting out of the Spanish system as of last week is if he can convince the UK that he is here to stay, and in that regard the Tax person on the phone from HMRC referred to an 'Article 4' application.
In his hammered state, he failed to ask 'Article 4 of what?'.
I am no accountant, but I am trying to help him. From what I can see, if the application for a 'Certficate of Tax Residency ' in the UK cannot be issued, then HMRC have the option to give him a 'Letter of Confirmation' that they (HMRC) consider him to be a UK tax resident going forward. I cannot find an application for the Letter of Confirmation, save that it may be issued as a result of the Certificate application being processed.
Has anyone any experience of this, please?
Thanks in advance.
Last edited by lurchio; Mar 5th 2018 at 7:08 pm.
Mar 5th 2018, 11:53 pm
#2
BE Enthusiast
Joined: Nov 2010
Posts: 377
Re: HMRC Certifcate of Tax Residency
I think they were referring to Article 4 in the Double Taxation Agreement.
In terms of the letter of confirmation, my understanding is that you submit a written request for a certificate of fiscal residence, and if they are unable to issue one, they then consider whether they can issue a letter of confirmation.
You can either complete the submission online, providing you have a government ID or email a completed form.
If he’s only just left then he will need to submit a return for 2017 anyway, and if it were me I would do this before submitting the Modelo 030. From the information in your post it appears he has no other taxable income, so it may be that they will be happy with the letter of confirmation. If not, then I would just resubmit the application to HMRC in October 2018.
If he has a digital ID or Cl@vePin in Spain you can submit the Modelo 030 online and upload a copy of the certificate/letter online as well.
In terms of the letter of confirmation, my understanding is that you submit a written request for a certificate of fiscal residence, and if they are unable to issue one, they then consider whether they can issue a letter of confirmation.
You can either complete the submission online, providing you have a government ID or email a completed form.
If he’s only just left then he will need to submit a return for 2017 anyway, and if it were me I would do this before submitting the Modelo 030. From the information in your post it appears he has no other taxable income, so it may be that they will be happy with the letter of confirmation. If not, then I would just resubmit the application to HMRC in October 2018.
If he has a digital ID or Cl@vePin in Spain you can submit the Modelo 030 online and upload a copy of the certificate/letter online as well.
Last edited by CapnBilly; Mar 5th 2018 at 11:58 pm.
Mar 7th 2018, 3:04 pm
#3
BE Enthusiast
Thread Starter
Joined: Aug 2012
Location: Granada Province
Posts: 549
Re: HMRC Certifcate of Tax Residency
Thank you for the Advice, very grateful.
