UK Residency Test Rule for Tax Filing FAQ

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UK Residency Test Rule for Tax Filing [FAQ]

The Automatic Overseas Test

You would normally be considered a non-UK resident if you meet any one of the following elements of the Automatic Overseas Test:

  1. You were considered as a UK resident in one or more of the previous three tax years, but you spend fewer than 16 days in the UK in the current tax year
  2. You spend fewer than 46 days in the UK in the tax year AND you were non-UK resident in the preceding three tax years
  3. You work full time outside the UK and spend fewer than 91 days in the UK and you work fewer than 31 days in the UK for three hours or less in any given day.

In terms of calculating the amount of time working in/out of the UK, you should always seek advice. There are a number of intricate calculations and considerations which will be taken into consideration which will affect the amount of time you have officially spent in the UK.

The Automatic Residence Test

If the Automatic Overseas Test is inconclusive, or you fail each of the components, the next step is to consider the Automatic Residence Test. If you meet any of these requirements you will be considered a UK Resident. Once again, there are intricate calculations involved, so you should always seek advice before making any decisions about your residence status.

Firstly, if you spend more than 183 days in the UK in the tax year.

Secondly, if you have a home in the UK and you spend a period of 91 consecutive days there, including 30 inside the tax year. You will also be considered a UK resident if you have no home overseas or you spend no more than the permitted amount of time there.

Finally, if you work in the UK for 365 with no significant break. However, there are a number of calculations and requirements to fulfil, so please seek advice if you are concerned

The Sufficient Ties Test

If, after reviewing the previous tests, you are still unsure about your residence status, you need to consider the sufficient ties test.

The Sufficient Ties Test essentially looks at whether you have ties which would deem you to be a resident in the UK. Ties would include:

  • Family members in the UK (for example a spouse or children)
  • Accommodation, that is a place to stay which is available to you for a continuous period of 91 days (thus excluding hotels)
  • 40 working days of 3+ hours per day or more in the UK
  • More than 90 days spent in the UK in at least one of the previous two tax years
  • You have spent more days in the UK than in any other country during the tax year

Understanding how many ties which are required to determine your residence status will depend on the number of days you spent in the UK during the tax year.

The following table simplifies this, however you should seek advice for an accurate assessment.

 

Days spent in the UK in the tax year under consideration          

UK ties needed to be considered a UK resident

16-45

At least four

46-90

At least three

91-120

At least two

Over 120

At least one

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