Help with Statutory Residence Test

Help with Statutory Residence Test

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Our client is a UK passport holder and domiciled individual. He has been employed in the UK most of his working life. On 1st April 2013 (I need to double check this date) he was seconded to work in the US on a two or three year project. He was employed by the US branch of the UK company.

In early 2014 the contract that the UK company was working on was cancelled, and my client returned to the UK at the end of March 2014, to resume working for the same employee back in the UK.

As he was not working overseas for a full tax year, is he treated as UK resident in the 2013/14 tax year (with double tax relief for the US earnings)?

He visited the UK once (vacation - I am checking up on the exact dates).

Will it make any difference if the start date is post 6th April 2013 (I also need to double check that the 1st April leaving date is correct).

Thanks for any advice on this.

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By taxhound
20th May 2014 17:20

Look at the automatic overseas residence tests

If he spent less than 16 days in the UK in 2013/14  he will be automatically non-resident.

Otherwise, he could still qualify for the working hours test but the rules are pretty tortuous to follow.  Just because he may have worked more than 35 hours per week when he was working, does not mean he will satisfy the average 35 hours per week test - you will need to work through the calcs.

Look at RDR 3

http://www.hmrc.gov.uk/international/rdr3.pdf

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By David Treitel
20th May 2014 21:26

You might want to explore the possibility that he was treaty resident in the United States if his only home was in the United States.

You'll need to ensure that his US returns are consistent with his UK returns so that overall he pays the correct tax.

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