Statutory Residence Test - HM Revenue & Customs

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