The following Employment Tax guidance note Produced by Tolley in association with Paul Tew provides comprehensive and up to date tax information covering:
This note provides an overview of the statutory residence test (SRT) introduced with effect from 6 April 2013. The SRT sets the ground rules for determining whether an individual is regarded as resident or not resident in the UK for tax purposes.
The concept of residence is fundamental to UK taxation and to determining whether an item of income is taxable in the UK. Residence is of particular importance when looking at non-UK sources of income because in many situations, a UK resident will be liable to tax on overseas income whereas a non-UK resident will not be. See the Residence and domicile ― effect on tax liability guidance note. This fact was noted by HMRC when the original consultation document on the proposals for the SRT was issued on June 2011.
Prior to the introduction of the SRT, the concept of residence depended on a mix of case law, limited legislation, and the interpretation of HMRC practice and guidance. See the Determining residence status (pre 2013/14) guidance note. The SRT was introduced with the aim of simplifying the previous rules at the same time as producing the same determination of residence for the majority of taxpayers.
Note that there may be a need to look at the pre 2013/14 rules in order to determine residence in those tax years where it is relevant to the individual’s tax position today, eg deciding whether the individual is deemed domiciled in the UK. See the Deemed domicile for income tax and capital gains tax (2017/18 onwards) guidance note.
The SRT sets out to determine conclusively if an individual is UK resident or non-UK resident for the tax year. An individual is UK resident for the year if they meet:
at least one of the automatic UK tests, and
none of the automatic overseas tests
FA 2013, Sch 45, Part 1, para 5
If none of the automatic tests are met, the individual then needs to consider the sufficient
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
This guidance note provides details of quarterly instalment payments (QIPs) for corporation tax purposes and which companies need to pay their tax liabilities in this manner.Generally, corporation tax is payable nine months and one day after the end of the relevant accounting period. However, large
Duty to prepare trust accountsUnder the laws of England and Wales, trustees have a duty to account to the beneficiaries for their financial administration of the trust fund. This duty is established by a substantial body of case law. In the case of Armitage v Nurse, Millett LJ stated:“Every
Employee benefit trusts (EBTs) are commonly used to support employees’ share schemes and to provide other benefits to employees in the form of pensions and bonuses.Their use has been significantly affected by the introduction of the disguised remuneration rules. Although the statutory exclusions
This guidance note provides an overview of what conditions need to be met before a business is entitled to treat VAT incurred as input tax. This note should be read in conjunction with the other notes in the ‘Claiming input tax’ subtopic. For a flowchart outlining the procedure for claiming input
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.