Utilizing case law and HMRC guidance. This makes sense in theory and will give anyone who is currently unsure of their eligibility to be considered a non-resident of the UK for tax purposes assurance. But because the regulations are so intricate, they have come under considerable criticism.
As of right now, if you stay in the country for 183 days or more, you are considered a resident of the UK, and if you stay an average of more than 90 days, you may be as well. With the new regulations, there will be no longer be a four-year average, and if you spend more than 90 days in the UK in any tax year, you will be regarded as a resident at all times. newport residences As before, you must be out of the country for the whole tax year to qualify as a non-resident, and if you are in the country at midnight on a given day, that day counts as one of your days there.
It is doubtful that your situation will abruptly change, though, as the new law is generally intended to leave most people in the same condition as before. The new resident and non-dwelling test must be understood, nevertheless. The test consists of three parts, which must be taken into account sequentially. So, if Part A determines that you are unquestionably a non-resident, Parts B and C are not necessary to take into account.
Accordingly, we believe the majority of our clients should still be protected by the Part A provision that states you are a non-resident if you have left the UK to work full-time abroad, are present in the UK for fewer than 91 days throughout the tax year, and spend no more than 20 days working there. But these three sections of the test are listed here.
You are categorically not a resident if:
You were in the UK for fewer than 16 days in the current tax year if you were a UK resident in one or more of the previous three tax years but were absent for more than 46 days in the previous three tax years if you were a UK resident for any of the aforementioned situations. If you were in the UK for fewer than 91 days during the tax year and worked there for no longer than 20 days, you have left the country to pursue full-time employment overseas. The cost of any training that you receive from your company and complete in the UK will be deducted from your 20-day working vacation.
Part B: If you meet the following criteria, you are unquestionably a resident.
You either have one home in the UK or more than one property in the UK and you are in the country for at least 183 days during a tax year. You may also work full-time in the UK if you have at least one home there and all of your properties are there.
Part C: If your scenario isn't covered in Parts A and B, you'll need to compare how many days you spent in the UK to a select group of clearly stated connection variables. The following list includes these connecting factors: