Do I have to pay tax if I stay in the UK for less than 183 days (BNO Visa holder)

I applied a BNO visa alone and my application entry clearance (i.e. the BNO visa) was granted on Jan 9, 2023. I entered the UK on July 5, 2023. My wife applied the BNO visa separately as the principal applicant, together with our 2 sons, who are her dependent applicants. They entered the UK on July 17, 2023. My wife and my sons are living with me in the UK now and we are renting a house here. I have a property in Hong Kong with 50% share with my father. My father nationality is Chinese. There is no other property under my / my wife's name. If I leave the UK on November 30 and back to the UK after April 6, 2024 (which means I stay in the UK during this fiscal year for less than 183 days), do I need to pay tax for the fiscal year 2023 – 2024?

Hi,

There is more to consider before you can make that decision. You will need to review the guidance at RDR3 and take the residence test, to determine whether you are tax resident in the UK for the whole tax year or non tax resident in the UK for the whole tax year.

RDR3 Statutory Residence Test

This is an informed decision you will reach by yourself, based on the residency tests.

Thank you.

I have done the RDR3 Statutory Residence Tests and below is the answers. Please advise if I am a tax resident in this year 2023-2024. 2.1 First automatic overseas test Answer: I was not resident in the UK for one or more of the 3 tax years before the current tax year, and I spent 119 days in the UK in this financial year 2023-2024. 2.2 Second automatic overseas test Answer: I was not resident in the UK for the 3 tax years before the current tax year, and I spent 119 days in the UK in this tax year 2023-2024. 2.3 Third automatic overseas test Answer: I spent 119 days in the UK in this tax year 2023-2024. The number of days on which I work for more than 3 hours in the UK is more than 31. There is no significant break from my overseas work 3.1 First automatic UK test Answer: I spent 119 days in the UK in the tax year 2023-2024. 3.2 Second automatic UK test Answer: • I rent a house in the UK for more than 91 consecutive days in this tax year 2023-2024. • I have been present at least 30 of these 91 days in my home in the UK • I have an overseas home in Hong Kong (which is co-owned with my father who is non UK resident) and I present in it for more than 30 days in the tax year 2023-2024. 3.3 Third automatic UK test Answer: I came to the UK on July 5, 2023 and left on October 30, 2023. I have spent 119 days in the UK and I was working my overseas job remotely in the UK. During this 119 days period, I have taken 26.5 days of annual leave, and I did not work on Saturdays, Sundays and also the bank holidays of Hong Kong. The actual number of days I was working in the UK for more than 3 hours is 60.5 days, which is 16.57% of the 365 days in this tax year 2023-2024.

Hi dimmyuk

HMRC cannot answer this for you. it is for you to determine based on the guidance available.
As you have already taken the statutory residence test, you may want to discuss this with a professional if you are still unsure.

Thank you

Regarding the Second automatic overseas test - You’ll be non-UK resident for the tax year if you were resident in the UK for none of the 3 tax years before the current tax year, and spend fewer than 46 days in the UK in the tax year. I am non-UK resident for none of the 3 years, but I spend more than 46 days in the UK. In this case, am I considered a tax resident already? Or do I need to consider the other tests.

Hi dimmyuk

You will be resident in the UK for a tax year and at all times in that tax year if: you do not meet any of the automatic overseas tests or you meet one of the automatic UK tests or the sufficient ties tests.  
Have a look at the guidance at part 1 of 1. Statutory Residence Test (SRT)

Thank you

I do not meet the first automatic overseas test and also not meet the second test, but I meet the third automatic overseas test. So I have to consider the Automatic UK test and also the Sufficient tests in order to confirm whether I am UK resident or not. Am I correct?

Hi dimmyuk
Yes.
Thank you.