Relevance of UK Residency

Relevance of UK Residency

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I have a client who moved abroad during 2013/14. She went abroad to be with her husband who has an overseas contract for 2 years.

She has continued the same self employment she did in the UK whilst abroad. She has no other sources of income in the year.

Her taxable profits are below the personal allowance.

It is likely to take quite a while to work out whether she is UK resident in 2013/14 and, as this will have no effect on the tax situation at all it seems a waste of time and effort.

Is it acceptable to simply treat her as resident with regards to her tax return and save a lot of time and hassle? If not, is there anything else I can do to make her and my life as easy as possible?

Thank you in advance for any responses.

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By User deleted
26th Nov 2014 14:59

She will be treated as ceasing to carry on the trade upon becoming non-resident s.17. So let HMRC know she is no more resident in the UK.

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James Reeves
By James Reeves
26th Nov 2014 16:01

Taxable?

You don't specify which country she is going to be resident in, but you cannot assume that because her income is below the PA in the UK that it will not be taxable in her new country of residence. That is presumably an issue for a tax adviser in that country.

As for making life easy, the online SRT page will give you her UK residence status for this year in a few moments, and after this year just tell HMRC she is no longer resident and ask for her to be taken out of self assessment. It will be up to her to register with the tax authorities in her new country of residence.

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