HMRC launches new residence tool
Your residence for tax purposes is determined by the statutory residence test (SRT). Following the test can be long-winded, but HMRC has launched an online checking tool that can simplify things. How do you use it?
HMRC’s new “Check your UK residence status” tool can be used to check your tax residence going back to 2016/17. It's basically an interactive run through of the SRT. It works by asking a series of questions to determine whether you were definitively non-resident, definitively UK-resident, or resident under the tiebreaker test, based on the answers you give. You will need to know the number of days you were in the UK, and potentially provide other information, e.g. how many days you worked full time in the UK in the year you are checking. The tool has helpful dropdown sections providing concise guidance on key terms, e.g. “What could a home be?”.
In related news, HMRC is writing to a number of taxpayers who claimed to have been in the UK due to “exceptional circumstances” during the pandemic. This affects the 2020/21 tax returns, and HMRC has reported seeing a number of errors. If you receive a letter, you will probably be prompted to submit a revised return within 60 days. If you use an accountant or tax advisor, you should contact them immediately.
Related Topics
-
Flat rate scheme: join now or never?
HMRC recently published a report about the advantages and disadvantages of the flat rate scheme for a small business. Could the report lead to the abolition of the scheme or a ban on new users?
-
Accelerate tax relief for the cost of equipment
You’re upgrading your company’s IT equipment as it’s now several years old. Naturally your company will get tax relief for the purchases but what’s the tax position if you sell or scrap the old equipment, and how might you improve it?
-
Opt out of winter fuel payments by 15 September
HMRC has issued new guidance on the winter fuel payments. What do you need to know?