Are the new rules on residence for UK tax purposed as impenetrable as they seem?

Are the new rules on residence for UK tax...

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I don't do much personal tax stuff (know my own limitations) and have been asked whether a friend of mine will be considered resident for tax purposes next year.  So I read the new rules and now my head hurts.  I can feel a pass over to someone who understands them better than me coming on...

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By MJShone
29th Jan 2014 16:44

KPMG flowchart

KPMG has a very nice flowchart - which doesn't, of course, mean you don't have to read the legislation etc - but it helps to clarify. (No - I'm not on commission!)

http://www.kpmg.com/UK/en/IssuesAndInsights/ArticlesPublications/Documents/PDF/Tax/220515_SRT_Flowchart_FB_21May_acc.pdf

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By kewcumber
29th Jan 2014 19:31

thanks!

Good lord that flow chart is genius compared to the ones by the HMRC !  I may have to marry you and have your babies...

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By taxhound
29th Jan 2014 19:37

Ridiculous

The rules are ridiculously complex, but you may get some help from the status indicator tool here:

http://tools.hmrc.gov.uk/rift/investigate/SRT+-+Combined/en-GB/Attribute...

I have not tried this out yet so would be interested to know how anyone finds it.

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By MJShone
30th Jan 2014 08:44

Kewcumber - Sorry - already taken

The KPMG creators of the flow chart might be free though...

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By Steve Kesby
30th Jan 2014 09:31

There's also a webinar recording...

... on AWeb's YouTube page, HERE.

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By sash100
31st Jan 2014 14:51

silly

Yes the rules are terribly complicated but now with the old scheme you were likely to be non resident with the statutory residency rules it is most likely than not that you will be considered to be resident in the UK in the year of departure even if you will be away for more than two years. Probably designed to earn more tax for the uk government

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By kewcumber
03rd Feb 2014 14:50

I was terribly excited by the Inland Revenue toolkit... "not currently available"

Hopefully it will be back up soon.

 

Thanks all

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By taxhound
03rd Feb 2014 14:55

oh dear...

It was there when I looked!

Great to know their systems are robust.

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By IslingtonAccountant
04th Feb 2014 10:04

I've dealt with a good number of leavers & arrivers this year. The new rules do make planning awkward - explaining the effect of the 90day tie to clients is fun - but with a few small exceptions (when does a place where you stay become a home?) the results are definitive. The rules for split-year treatment seem quite strict.

The HMRC toolkit - when working - agrees to our working of the test. There is also a free app produced by Berwin Leighton Paisner (I have no connection) that appears to work well.

One thing to note is that the guidance booklet RDR3 is updated almost monthly - it seems that even  HMRC haven't quite got the hang of it yet!

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By kewcumber
06th Feb 2014 14:31

Yay!  Friend has decided to

Yay!  Friend has decided to take 18 month posting to Phillipines with Red Cross, conveniently leaving the UK in March and probably won't be back in the UK until the end of his contract for more than a couple of weeks.  Think I dodged a bullet there... if he decides to buy a property here I think I'll pass him onto an esteemed colleague to handle.

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