Statutory Residence Test - HM Revenue & Customs

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Split Year Treatment Case 5: Overseas part of the year 5.31 The overseas part of the tax year starts at the beginning of the tax year and ends at the point you first meet the third automatic UK test by working full-time in the UK. Case 5: UK part of the year 5.32 The UK part of the tax year is the period from the end of the overseas part until the end of the tax year. (Example 38 on next page.) RDR3 62
Split Year Treatment Example 38 Andrea arrived in the UK on 20 May 2013 from Poland for a two week visit. She stays with her sister who is working in the UK. This is her first trip to the UK and she has never previously been UK resident for tax purposes. Just before Andrea is about to return to Poland, she is offered a part-time job at a hotel. This will be her first ever job. She starts work on 10 June 2013. For the first eight weeks of her employment she works 20 hours a week (five hours a day) but from 5 August 2013 she is offered full-time hours of 40 hours a week. She takes 20 days leave during the tax year; there are no non-working days embedded within any of her periods of leave. Although for the first eight weeks of her employment she only works 20 hours per week, she works out that she meets the third automatic UK test from 10 June 2013 as follows: Step 1: In a 365-day period there are 0 disregarded days when she did more than three hours of work overseas. Step 2: Total number of UK hours worked during the 365 period (8 weeks x 20 hours & 40 weeks x 40 hours) = 1760 hours Step 3: Subtract 0 disregarded days and 20 other days that can be deducted from 365 = which leaves a reference period of 345 days. Step 4: Divide the reference period by 7: 345÷7= 49.29, which is rounded down to 49 Step 5: Divide Andrea’s net UK hours by 49 (the result of Step 4): 1760 ÷49 = 35.91 hours Andrea’s hours average out at over 35 over the 365-day period from 10 June 2013 (which is a day on which she worked more than three hours in the UK); she meets the third automatic UK test from that date. Andrea meets the criteria for Case 5 split year on the basis that: - she was non-UK resident in the previous year - she meets the third automatic UK test for the 365-day period commencing 10 June 2013 (which is a day on which she worked more than three hours in the UK). - in the part of the tax year from 6 April until 10 June 2013 she did not have sufficient UK ties. See Table F. RDR3 63
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Guidance Note: Statutory Residence
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Workers with jobs on board vehicles
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The statutory residence test accomm
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Changes in this version RDR3 update
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The statutory residence test Automa
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Page 97 and 98: Annex B Split year Cases 4 and 5 -
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Page 101 and 102: Annex B Example B5 Philip is a stru
Page 103 and 104: Annex C Example C1 George and his w
Page 105: Annex C Example C4 Clara is 14 year
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