HMRC launches new residence tool
Your residence for tax purposes is determined by the statutory residence test (SRT). Following the test can be long-winded, but HMRC has launched an online checking tool that can simplify things. How do you use it?
HMRC’s new “Check your UK residence status” tool can be used to check your tax residence going back to 2016/17. It's basically an interactive run through of the SRT. It works by asking a series of questions to determine whether you were definitively non-resident, definitively UK-resident, or resident under the tiebreaker test, based on the answers you give. You will need to know the number of days you were in the UK, and potentially provide other information, e.g. how many days you worked full time in the UK in the year you are checking. The tool has helpful dropdown sections providing concise guidance on key terms, e.g. “What could a home be?”.
In related news, HMRC is writing to a number of taxpayers who claimed to have been in the UK due to “exceptional circumstances” during the pandemic. This affects the 2020/21 tax returns, and HMRC has reported seeing a number of errors. If you receive a letter, you will probably be prompted to submit a revised return within 60 days. If you use an accountant or tax advisor, you should contact them immediately.
Related Topics
-
EVs and the tax-free mileage allowance
You’re a director and regularly use your electric vehicle (EV) for business journeys. Your company provides a workplace charger which is free for all staff to use. Does the origin of the electricity impact your claim for tax-free mileage?
-
HMRC loses employment status case involving football referees
HMRC has lost another employment status case, this time involving football referees engaged by Professional Game Match Officials Ltd (PGMOL). The tribunal rejected HMRC’s argument that the referees should be treated as employees for tax purposes. Why does the decision matter?
-
Investing: loans vs shares
You have the opportunity to invest in a promising start-up company. You can either purchase shares or lend it the money. What are the potential tax consequences you need to factor in when making your decision?