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Split Year Treatment

Is client able to claim split year treatment for 2020-21?

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I have a client who worked in the UK full time from 6 April 20 to 10 October 20. He then left the UK to work full time in Saudi Arabia from 12 October 20 and will probably return in May 2022. From the time he left in October 2020 he spent 10 days in the UK in December 2020 on a Christmas break with his family. Will he: 1. Be able to claim split year treatment in 20-21 for the period he moved to Saudi i.e. 12 October 20 to 5 April 21? 2. Will he be able to claim non residence status in the UK in 21-22 - he will be working full time in Saudi and will spend about 15 days on holiday in the UK in 2021-22 Covid travel restrictions permitting. Thank you Aidan Smyth

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By carnmores
04th Apr 2021 20:54

What nationality are they? Where were they before 6th April 2020? Have you checked the SRT? My view is no as absence from UK is very short. But i might change my mind on provision of further information.

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Replying to carnmores:
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By Aidan Smyth
05th Apr 2021 05:49

Thank you

They are English and have been working in England throughout. They originally intended to leave UK in April 20 but because of Covid had to remain here until travel restrictions eased. Between April 20 and Oct 20 they were working for the Saudi client but here in the UK.

Kindest regards

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Replying to carnmores:
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By Aidan Smyth
05th Apr 2021 06:31

Thank you

They are English and a self employed contractor and have been working in England for many years.

They originally intended to leave UK in April 20 but because of Covid had to remain here until travel restrictions eased. Between April 20 and Oct 20 they were working for the Saudi client but here in the UK.

I thought they would qualify because for 19-20 they were resident in UK and since leaving the UK in October 20 they worked full time for the client save for a Christmas break.

They will be working full time overseas in 21-22 with no breaks save coming to UK for an annual holiday in the Summer and a few days at Christmas.

They have done and will do no work in the UK since leaving.

I did read the SRT and HMRC manuals RDRM and thought he may qualify as a leaver under Case 1?

Kindest regards

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Replying to Aidan Smyth:
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By Tax Dragon
05th Apr 2021 08:15

Aidan Smyth wrote:

I did read the SRT and HMRC manuals RDRM and thought he may qualify as a leaver under Case 1?

There's a possible trap that, technically at least, non-residence in 2021/22 may need to be under case 3 to get the split year treatment in 20/21. See RDRM12030 re prioritisation (if relevant) and https://www.accountingweb.co.uk/any-answers/case-6-split-year-treatment for a discussion of the issue.

As ever, make your own mind up. Relying on answers from a public forum is not sound thinking. Even though I was one of the two contributors to the thread I have linked to, the answer we reached (if indeed we reached one) sits uneasily with me. I haven't had cause to think about it in real life (ie other than on that thread). If it came up in real life, I would take the issue seriously and seek to reach an answer; I wouldn't rely on that thread for the answer, but I would reread it to remind myself of the issue. (I hope that makes sense. It should do, IMHO, for anyone that uses an open forum.)

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