Statutory Residence Test - HM Revenue & Customs

The statutory residence test
Example 3
MayLing is considering whether she meets the third automatic overseas test
in respect of her work in Italy in the last tax year. She worked for her first
employer there for an average of eight hours a day, five days a week,
between 6 April and 23 August (20 weeks). During that period she took nine
days annual leave (there were no embedded non-working days);
consequently MayLing had worked for 18 full weeks and for only one day in
another week. She ceased that employment and took a break of 30 days to
tour around Italy.
She then took up a new employment, again in Italy, between 23 September
and 5 April (27 weeks and six days – amounting to 28 working weeks). During
that period she worked for nine hours and 30 minutes from Monday to
Thursday and for four hours on a Friday. She took:
- five days of annual leave; for three weeks she only worked three long
days and a short day, and for one week she worked two long days and
a short day, reducing her number of full working weeks by five weeks
- 10 days of annual leave, with two embedded non-working days (the
Saturday and Sunday in the middle of this two-week period), reducing
her number of full working weeks by two
- five days, continuous, sick leave (with no embedded non-working
days), reducing her number of full working weeks by one.
She therefore worked for only 20 full working weeks in this part of the year.
MayLing spends no time in the UK in the tax year.
Step 1
MayLing has no disregarded days.
Step 2
Net overseas hours:
Employer 1: 18 weeks and one day at (5 days x 8 hours) = 728 hours
Employer 2: 20 weeks at ((4 days x 9.5 hours) + 4 hours) = 840 hours
3 weeks at ((3 days x 9.5 hours) + 4 hours) = 97.5 hours
1 week at ((2 days x9.5 hours) + 4 hours) = 23 hours
Total net overseas hours: = 728+840+97.5+23 = 1688.5 hours.
Step 3
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RDR3 16