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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 5170
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Hi, Filling out tax return for yr end apr 14, I am non-resident,

Customer Question

Filling out tax return for yr end apr 14, I am non-resident, have been so for the last 2 tax years, have a home overseas, but not in the UK, spent 50 days in the UK for 2013_14 but none for work. I have 0 ties to the UK.
I work for myself in the sense that I manage some properties rented out and financial investments, including day trading so generally I work for at least 5 hours a day Monday to Friday. However it is in a personal capacity not under any company structure so my question is should I include this under 'number of workdays you spent overseas'? Or should I just leave it blank as in any case in won't affect the statutory residence calculation?
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 first thing that you should do, if you have not done so already, is to complete a form P85 and send it to your tax office. Fortunately it is available, can be filed on line and there is no time limit. On receipt of the form HMRC will make you non resident for the tax year after your departure and furthermore split the leaving year into two portions, one resident and one non resident. As non resident this will leave the only income subject to tax that earned in the UK,

in your case, presumably as your question is unclear as to exactly to what rented property is owned by you or otherwise, or indeed where that property is located, your rental and investment income. You may see my problem, whose or where is it located? Your management income is not earned in the UK, the rental would be, ditto the investment income. As a non resident you are advised to spend no more than 91 days in each tax year in the UK to continue to retain your non resident status and no liability to UK income tax, save for that mentioned above.

I expect that you will have to come back to me to follow up. I suspect that you should not need to fill in an UK tax return at all unless your UK income is over the Personal Allowance limit of 10K..

Customer: replied 3 years ago.


Yes the income is over 10k and I did send a p85 when we left the UK in July 2010. My question is really just regarding the new questions associated with the new statutory residence test. That is should I write in the box the workdays I spend abroad even though these are on an informal personal basis - ie not for an employer or a formal company of my own?

Expert:  bigduckontax replied 3 years ago.
Well at least you did the right thing on departure. It seems to me that you are non resident for tax purposes already anyway so the new statutory residence test does not come into the equation; it is an irrelevance.
You did not spend any time abroad working, you live abroad! I would tend to leave it blank. HMRC are clearly trying to test every non resident to ensure that indeed their status is correct. You spent well below the maximum permitted in the UK to retain non resident status so should not be the slightest bit concerned over this matter.