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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4198
Experience:  FCCA FCMA CGMA ACIS
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Hi, I just ran the new Statutory Residence Test (SRT) for

Customer Question

Hi,
I just ran the new Statutory Residence Test (SRT) for tax year ending April 2013, and it appears that I was not a tax resident in the UK. In a nutshell, my job required that I spend most of my time at clients’ abroad, and on the few days that I needed to be in the UK (~50 in that year) I stayed with friends. My home was in France where my wife and I own a flat. That being said, my employer was UK-based and my salary was transferred monthly to my UK bank account. I have also already paid all my taxes like a normal UK tax resident.
Can I claim anything back? Was the SRT different than the current one for tax year ending April 2013?
Many thanks!
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.
The SRT merely placed the residence test on a more sound footing for the benefit of taxpayers. What you should do is take the P85 procedure if you have not already done so. This can be done on line as indeed from where the form can be downloaded also. On receipt of a P85 your tax office will class you as non resident in the tax year after your date of departure and split your departure year into two parts, one resident and non resident. Once you have done this you may well be in a reclaim situation. However, if you wish to keep your card stamped, to use an old expression, you will have to arrange for separate NI contributions to be arranged.
However, your other problem is inter reaction with French tax. French taxation is fiendishly complicated* and France has five times as many inspectors per head of population that the UK. You have virtually no alternative but to employ a local professional in this matter. There exists a Double Taxation Treaty between France and the UK to preclude the same moneys being taxed in both jurisdictions by means of tax credits.
Having regard to this it might be adviseable to emulate Brer Fox, 'For he lay low and say nuffin' and let things go on as they are. However, if the French tax authorities catch uo with you well you will have to rely on the treaty. By the by, the general consensus amongst experts is that to retain non resident status you should not spend more that 91 days in the UK in each tax year.
I do hope I have helped.
* For example I have a friend retired to France. None of his Government occupational pensions are taxable in France, but his State Pension is!
Customer: replied 3 years ago.
Relist: Answer quality.
Please thank the expert but tell him that he is giving me a procedure to follow now regarding my non-residency, when my situation is that there is only 1 past tax year that I might have qualified (I certainly wouldn't qualify as non-resident in the previous or following year). I need to know if I can claim tax back retro-actively, and whether the SRT I ran is even relevant for the tax year in question. Thank you.
Expert:  bigduckontax replied 3 years ago.
I would still submit that a P85 procedure might well assist you even if you only spend one tax year non resident for tax purposes. It will put your position on a sound footing.
Customer: replied 3 years ago.

So I can use a p85 TODAY to tell HMRC that I left the UK 2.5 years ago, and that I came back 1.5 years ago... ?

Expert:  bigduckontax replied 3 years ago.
You can and the form makes provision for any tax due to be returned to be paid either to an account or by means of a payable order. You could enclose details of your return date in a letter to your tax office. This might smooth the way fairly painlessly. Many taxpayers forget or do not even know about the P85 so late submissions are fairly common.
Customer: replied 3 years ago.

Even though my employer was still my UK employer, paying me salary to a UK bank account? And that I don't really have a "date where I start my job abroad" (question 25 of the p85) since I only spend time going from one client to another in different countries, with a few days in the UK every now and then to check in with my team?

And doing that might actually get me some taxes back (regardless of the French situation)?

Surely HMRC will want some kind of proof that I wasn't physically in the UK...

Apologies for the back and forth, it just sounded to good/simple to be true. I appreciate your counsel. Thank you

Expert:  bigduckontax replied 3 years ago.
But you state that you have a residence in France which enhances your situation. It will do no harm to use the P85, your being paid in the UK is not unique. You might actually get some of that tax returned.
HMRC once they have recorded you as non resident would only require to show your lack of presence in the UK in the event of an investigation. Although the 91 day rule can be averaged over four tax years most experts reckon it safer not to ever breach the 91 days, but then you don't!
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Expert:  bigduckontax replied 3 years ago.
Thank you for your excellent support.
Customer: replied 3 years ago.

sure!

Expert:  bigduckontax replied 3 years ago.
Delighted to have been of assistance.
Expert:  bigduckontax replied 3 years ago.
Post to clear my question list.