In the coming weeks HM Revenue and Customs will launch a new online test for expats to find out how much, if any, tax they owe the British tax man. From 6th April the rules that determine if someone is classed as a UK resident are changing. The new test, called the Statutory Residence Test (SRT) is accompanied by an online residence indicator that is designed to help people through the early stages of the process and to give an indication of your residence status by answering “a few straightforward questions” such as how many days you spend in the UK and details of any other homes abroad.
If the outcome is that the applicant is a UK resident, they will be liable to pay tax on their income from their country of employment. If they are classed as a non-resident they must notify HMRC of any untaxed UK income.
Many professional expats who were once dissuaded from moving by uncertainty and ambiguity in tax laws will now be able to have any conditions and ‘grey areas’ cleared up with a level of accuracy that was not available until recently.
The current HM Revenue & Customs outlines state that you are a UK resident if you are in the UK for 183 days or more in a single tax year, or more than 90 days on average in a single tax year over the previous four tax years. HMRC is urging any British expats who spend part of the tax year abroad and part of it in the UK to take the test to ensure compliance with the new laws.
For more information, visit the Residence Indicator page on the HMRC website