HMRC document “RDRM10225 - Residence: Coming to the United Kingdom: Residence status

The current HMRC document “RDRM10225 - Residence: Coming to the United Kingdom: Residence status” is for the purpose of determining the tax residence status of a previous resident in the UK upon returning to the UK after a period of being abroad. This determination is based on the length that the individual has been absent and the average number of days per year that he or she has spent in visits to the UK during the four years immediately before the year of arrival. The document starts by describing the returner as an “individual” but later identifies the individual as someone who has “worked” while being abroad. My question is: Can it be assumed that this document essentially applies to all types of returning former residents and thus would include retired individuals?

Hi,

Yes, it does.

Thank you.

Many thanks for answering my question. I now have a follow up question. RDRM 10225 sets out a number of circumstances that in the case of an arriving individual meeting all of them then that individual will be resident and ordinarily resident from the day of arrival. I would like to make an enquiry about the case where an arriving individual does not meet all of these circumstances such, as for instance (and specifically), the individual’s annual number of visit days to the UK days during the 4 years prior to the year of arrival exceed 91 days. RMDM10225 just states that: “If the individual does not meet all the conditions issue a code number with full personal allowances on a week1/month1 basis”. This reference to “week1/month1” seems to imply that it is assumed that the arriving individual is or will be going on to a UK payroll and paying taxes by PAYE. My question is: What happens in the case of a returning retired individual who has been permanently living abroad for several years arrives in the UK on 6th April with the intention of staying permanently in the UK, whose retirement income is almost entirely sourced from abroad, who assumes that he or she will be classified as resident and ordinarily resident and proceed to register for Self-Assessment but who does not meet the average 4 year 91 visit day criteria? Should this individual anticipate or prepare for any further requirements from HMRC?

Hi,

Based on your income being from foreign sources you would need to register for self assessment in order to declare.

You can complete the residence section SA109 to confirm that you are in fact UK resident.

Tax on foreign income

Thank you.