Statutory-Residence-Test-Flowchart-And-Glossary.Pdf
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THE POWER OF BEING UNDERSTOOD AUDIT | TAX | CONSULTING STATUTORY RESIDENCE TEST FLOWCHART Please use this flowchart for an indication of your residence status. For information on key terms used, please refer to the glossary overleaf. Non-Resident Ye s Ye s Resident in the UK for 1 or Not resident throughout the Always Resident if 183 days more of the previous 3 tax whole of the previous 3 tax Start or more spent in the UK in No No years and spend < 16 days in years and spend < 46 days in the tax year. the UK in the tax year the UK in the tax year Ye s No Work full time overseas Have or had a home in the UK without any significant breaks Work full time in the UK No during all or part of the tax No in the tax year and spend < 91 year days in the UK and work in the UK for < 31 days No Ye s Ye s Resident LEAVER CONNECTIONS RESIDENCE STATUS DAYS IN UK UK Resident Family Always Resident 183 or more Available Accommodation in the UK Resident if 1 connection 121-182 Ye s Substantive UK Employment Resident if 2 connections 91-120 Present in the UK > 90 days in either or both of Resident if 3 connections 46-90 the previous 2 Tax Years Resident if at least 4 connections 16-45 Resident in Spent more days in UK than any other Country the UK in one Always Non-Resident 15 or less TOTAL CONNECTIONS or more of the previous 3 tax years? ARRIVER CONNECTIONS RESIDENCE STATUS DAYS IN UK UK Resident Family Always Resident 183 or more Available Accommodation in the UK Resident if 2 connections 121-182 No Substantive UK Employment Resident if 3 connections 91-120 Present in the UK > 90 days in either or both of the Resident if 4 connections 46-90 previous 2 Tax Years Always Non-Resident 45 or less TOTAL CONNECTIONS 2 GLOSSARY TERM DEFINITION A day in the UK A day is treated as being spent in the UK if you were present in the UK at midnight, however, this is subject to the deeming rule which will count certain days even though you were not here at midnight, transit days and time spent in the UK due to exceptional circumstances. Working full time overseas There is a calculation to perform to determine the number of hours that you work overseas. This condition is met where the result of the calculation is 35 hours or more. Significant break from You will have a significant break from employment if at least 31 days go by and not one of those days is a day on which employment you work for more than 3 hours (overseas for automatic overseas test or UK for automatic UK test) or would have worked for 3 hours (either overseas or in the UK) if your are on annual, sick or parental leave. Home in the UK You have a home in the UK if there is a period of at least 91 consecutive days, of which at least 30 days fall in the tax year (these do not have to be full days), when you have a home in the UK in which you spend a sufficient amount of time (at least 30 days in the tax year) and either have no overseas home or have an overseas home in which you spend no more than a permitted amount of time (fewer than 30 days in the tax year). Work full time in the UK Work full time in the UK for any period of 365 days with no significant break and all or part of that 365 day period falls within the tax year; more than 75% of that 365 day period are days when you do more than 3 hours of work which are performed in the UK, at least one day in the tax year is a day when you carry out more than 3 hours of work in the UK. Work day A day is deemed as a work day when at least 3 hours are spent performing employment duties. However, there are special rules about what constitutes 3 hours of work for people in relevant jobs. UK resident family If your family remain in the UK after you have left you will have a connecting factor to the UK. The term family includes husband, wife or civil partner, your partner (if you are living together as husband and wife) your minor child. There are specific circumstances in which you will not be deemed to have a connecting factor if you have a minor child. Accommodation available You have an accommodation tie if there is somewhere in the UK which is available for you to live for a continuous period in the UK of 91 days or more and you spend one or more nights there. There are circumstances where you may stay with a close relative which would not give you a factor connecting you to the UK. Substantive employment You have a substantive employment connecting factor if you have at least 40 workdays in the UK in the year. For more information please contact your usual RSM adviser 3 rsmuk.com The UK group of companies and LLPs trading as RSM is a member of the RSM network. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm each of which practises in its own right. The RSM network is not itself a separate legal entity of any description in any jurisdiction. 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