Questions about tax resident and self-assessment

Hi, I am new to the UK and have little knowledge about the tax. I would like to ask 5 questions. Question 1: For a person, as an individual, is it only two kinds of declaration about income and capital gain for tax purposes? Is there any kind of declaration or assessment I have to consider in addition to PAYE and self-assessment? Question 2: Is that the PAYE should be done by employers? For the employees, retired people, or jobless people, there is no need to do that, is it correct? Question 3: If my earning, income, and capital gain in the tax year of 6 April 2021 to 5 April 2022, are totally less than £1,000 globally, does it mean I have no need to do self-assessment, and no any kind of declarations involved? I can simply do nothing even though I am a tax resident, is that correct? Question 4: I would like to determine whether or not I am a tax resident for the tax year of 2021-2022, so that I am reading the Statutory Residence Test (SRT): https://www.gov.uk/government/publications/rdr3-statutory-residence-test-srt/guidance-note-for-statutory-residence-test-srt-rdr3 In the 2.1 and 2.2 of Automatic overseas tests, both sections ending with 'spend fewer than 16 days in the UK in the tax year' and 'spend fewer than 46 days in the UK in the tax year'. For the words 'in the tax year', does it mean the tax year in which I have to determine whether or not am I a tax resident? In my case, does it mean that to spend fewer than 16 or 46 days in the tax year of 2021-2022? Question 5: For the 2.3, it says: 'You’ll be non-UK resident for the tax year if you work full-time overseas over the tax year and: you spend fewer than 91 days in the UK in the tax year". I retired for many years, not working in and out of the U.K., however, I have spent more than 91 days in the UK in the tax year of 2021-2022. For my case, is that I have not met the 2.3 and I should go to the next step for automatic UK tests or the sufficient ties test? I appreciate your taking the time to explain to me. Kindest regards

Hi

1. You can check to see if you are required to declare your worldwide income on a Self Assessment form:

Check if you need to send a Self Assessment tax return

2. Question too general - PAYE can be Individuals or Employers 

3. Please check SA criteria tool in link above

4. Yes the tax year is the tax year in question,that you are determining wether you are UK resident/Non resident

5. Yes if you do not meet the criteria in on instance move to the next questions on the test. 

Thankyou.

Regards.

Hi, Thanks for your answer. Question 6: Now, I am checking on the website of 'Check if you need to send a Self Assessment tax return'. https://www.gov.uk/check-if-you-need-tax-return On the Question 7 in the website, it says 'Do you need to pay any Capital Gains Tax?' and 'You usually have to pay Capital Gains Tax when you sell or give away'. For the words 'give away', what if I have gave a large amount of money to my son as gift in the tax year, with my son and I already been tax resident in that tax year? I don't expect my son give anything to me back as return. Am I or is my son have to pay Capital Gains Tax? What if I not yet became tax resident while I was giving the gift to my son, with he already been tax resident? I don't expect my son give anything to me back as return. Am I or is my son have to pay Capital Gains Tax? Kindest regards,

Hi, Please note that cash gifts from parents to children are regarded by HMRC as non-taxable transactions, so there are no Capital Gains tax implications for you or your son. There may however be Inheritance Tax implications. For more information, please read the guidance below: How Inheritance Tax works: thresholds, rules and allowances    . Thank you.

 

Hi, I would some more about the Statutory Residence Test (SRT): https://www.gov.uk/government/publications/rdr3-statutory-residence-test-srt/guidance-note-for-statutory-residence-test-srt-rdr3 For the 2.3, it says: 'You’ll be non-UK resident for the tax year if you work full-time overseas over the tax year and: you spend fewer than 91 days in the UK in the tax year". I have spent more than 91 days in the UK in the tax year of 2021-2022. However, I have no full-time job and no part time job in and out of the U.K.. Do I meet the criteria of non-UK resident?

Hi TeresaYuen,

To meet the Third Automatic Overseas Test (2.3)  you have to meet each of the following conditions:
(a) you spend fewer than 91 days in the UK in the tax year
(b) the number of days on which you work for more than 3 hours in the UK is less than 31 and
(c)  there is no significant break from your overseas work.
It follows that if you spent more than 91 days in the UK in 2021/22, you would not meet the Third Automatic Overseas Test criteria.

Residence, Domicile and Remittance Basis Manual

Thank you.

Hi, I would like to ask the followings: 1 At beginning of the Statutory Residence Test (SRT), it says 'If you’ve been in the UK for 183 or more days you’ll be a UK resident. There is no need to consider any other tests.' For the '183 or more days', does it only mean the days between 6 April 2021 to 5 April 2022? Otherwise, does it mean all the days since I entered into the U.K., including the days after 5 April 2022 till now? Actually I spent lesser than 183 days in the UK 5 April 2022, but more than 183 days till now. 2 For the 3.2, my situation as follows: I was living in Hong Kong, and I was renting a home in Hong Kong from November 2020 to November 2021. I entered U.K. at November 2021, then living in three Airbnbs until the mid of March, all of the Airbnbs are not booked and not paid by me. I started to rent a home with a formal tenancy agreement from the mid of March, I am still living in there by now. It was lesser than 30 days before 5 April 2022, but more than 91 days till now. For the situations above, am I meet 3.2 test? Otherwise, should I go to 3.3?

Hi,
 

The test allows you to work out your residence status for a tax year. Each tax year is looked at separately, so you may be resident in the UK in one year but not the next, or vice versa. As such it will be 183 days in a tax year. HMRC cannot advise on your residence status so cannot answer which test you fall under   . Thank you.

Hello, I would like to clarify below UK residence test question. 91 days are for one place to live in UK or total days live in UK. ** For question Was the place to live in the UK available to you for a continuous period of at least 91 days from 6 April 2021 to 5 April 2022? **If you have more than one place to live in the UK, you should consider each one separately. Thank you,

Hi Eric Wong,

It is the one place to live so if you only lived in a property for 90 days or less and moved on then this would not qualify.

Thank you.