Statutory Residence Test - HM Revenue & Customs

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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 (continues on next page) RDR3 16
The statutory residence test Reference period: Subtract from Disregarded days 365 days 0 days Other days that can be deducted: - 9 days leave Employer 1 - 15 days leave employer 2 - 2 embedded days - 5 sick days = 9+15+2+5 = 31 days Gap between employments 15 days (total gap 30 days but the amount deducted is limited to 15 days) Reference period is: 365-31-15 = 319 days. Step 4 Divide reference period by 7 = 319÷7= 45.57 which is rounded down to 45. Step 5 Divide net overseas hours by figure at Step 4 = 1688.5÷45= 37.52. MayLing meets the sufficient hours test. She will need to consider whether she meets all other parts of the third automatic overseas test, in particular that the number of days spent in the UK in the tax year is less than 91. Automatic UK tests 1.22 Subject to not meeting any of the automatic overseas tests, you are resident in the UK for a tax year if you meet: any of the automatic UK tests set out below, or the sufficient ties test First automatic UK test 1.23 You spend 183 days or more in the UK in the tax year. RDR3 17
Page 1 and 2: Guidance Note: Statutory Residence
Page 3 and 4: Workers with jobs on board vehicles
Page 5 and 6: The statutory residence test accomm
Page 7 and 8: Changes in this version RDR3 update
Page 9 and 10: The statutory residence test Automa
Page 11 and 12: The statutory residence test Step 2
Page 13 and 14: The statutory residence test across
Page 15: The statutory residence test - mate
Page 19 and 20: The statutory residence test Exampl
Page 23 and 24: The statutory residence test 30-day
Page 27 and 28: The statutory residence test Sam wo
Page 29 and 30: The statutory residence test Table
Page 31 and 32: Definition of UK ties spends fewer
Page 33 and 34: Days spent in the UK 3. Days spent
Page 35 and 36: Days spent in the UK Example 16 Des
Page 37 and 38: Days spent in the UK In this scenar
Page 39 and 40: Days spent in the UK Example 20 Mem
Page 41 and 42: Days spent in the UK Example 24 Shi
Page 43 and 44: Days spent in the UK 3.30 If you ha
Page 45 and 46: Application of the SRT to deceased
Page 51 and 52: Split Year Treatment 5. Split year
Page 53 and 54: Split Year Treatment spend no more
Page 55 and 56: Split Year Treatment His reference
Page 57 and 58: Split Year Treatment move oversea
Page 59 and 60: Split Year Treatment spend fewer
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Page 65 and 66: Split Year Treatment 5.37 Table G s
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Split Year Treatment if you had h
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Split Year Treatment Example 41 Nic
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Period of temporary non-residence S
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Period of temporary non-residence E
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Period of temporary non-residence
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Period of temporary non-residence
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Record keeping 7. Record keeping Wh
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Record keeping The sufficient ties
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Transitional provisions Statutory C
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Annex A Annex A: Home and accommoda
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Annex A Example A3 William has busi
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Annex A A16 The key points are that
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Annex A A25 If an individual cannot
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Annex A Example A16 Sacha visits th
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Annex A continuously in a tax year,
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Annex B Split year Cases 4 and 5 -
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Annex B Example B2 Henrik is workin
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Annex B Example B5 Philip is a stru
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Annex C Example C1 George and his w
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Annex C Example C4 Clara is 14 year
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Statutory Residence Test - HM Revenue & Customs

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