Becoming a UK tax resident at the end of the tax year

Hi, I am a German citizen and plan on moving to the UK in February. I will have a job in the UK and plan to stay there fore a longer period of time (several years). Since my move happens in February I wont be in the UK for more than 183 days for the tax year 2023/24. In Germany the tax year starts on 1st January and ends 31st December. Therefore my time up to 31st December 2023 I will be a German tax resident and from 6th April 2024 I will be a UK tax resident, but what happens to 1st January to 5th April 2024? I will neither be in Germany for more than 183 days in the tax year 2024 nor in the UK for the tax year 2023/24? Thanks already for your support! Regards Sascha

Hi,

You will need to undertake the statutory residence test in the link below to confirm your residence status.  

You will either be consiered tax resident for the whole UK tax year or not tax resident for the whole UK tax year. You may also need to check if split year treatment applies in the 2023 to 2024 tax year. The outcome of these tests will determine what will happen from February 2024 to April 2024 and whether a tax return is required. The tests can be found here: 

RDR3 Statutory Residence Test

Thank you.

For the second and third automatic UK test, periods of time are in question. - there is or was at least one period of 91 consecutive days when you had a home in the UK (second) - you work full-time in the UK for any period of 365 days, which falls in the tax year (third) Are those periods also projected into the future? If I move to the UK and start working there in February, I will have at a certain time 365 consecutive days if I stay in the UK and for sure will have 91 consecutive days a home in the UK if I stay there, but I can't tell yet at the end of the Tax year. the 365 days of work period I wont be even able to tell in Oktober when the self assessment would be due. Therefore the question: Are those periods only projected into the past or also into the (unknown) future and would I then have to do a second self assessment? Regarding the split year: this would only come in consideration if the SRT would render me a UK tax resident, is this correct? Thanks Regards Sascha

Hi Sascha

The periods are based on the past as you are working it out for a tax year(s) that has finished. You cannot work out future details as circumstances/plans can change.
If you qualify for split year then you only report any foreign income for the UK part of the year please see Residence, Domicile and Remittance Basis Manual.
If you do not qualify then you will need to report all your foreign income to the UK (Tax on foreign income).  The guidance at RDRM12150 at www.gov.uk will help you work out if split year treatment applies. 

Thank you

Thanks for the clarification. I do not meet any of the automatic overseas test, nor do I meet any of the automatic UK tests nor the sufficient ties test. Therefore, I will not be considered a UK tax resident for the tax year. In that case, I do not have to look into any split year considerations. Is that correct? Thanks Sascha

Hello have a similar question 1) I pass test about residence and its seems I am not a resident of UK for 2023/2024 financial years. I came in december 2023 (at 05.04.2024 I spent in UK 114 days). I moved from Abroad and continue work on my Abroad self employment remoutly and got income for it on my abroud bank acount (foring income). Do I need to open Self employment in UK or pay some taxes or fill any document about foring income (self assesment) 2) In case if I wrong and I am a resident of UK do I need to pay taxes from all my income in 2023/2024 financial year even that I got before moved to UK 3) have some concern about 3.1) is it aplicable to me Third automatic UK test if I spent only 114 days in UK (its first my trip to UK) on 05.04.2024. Plan to work 30 part time days in this tax year. "3.3 Third automatic UK test You’ll be UK resident for the tax year if all the following apply: you work full-time in the UK for any period of 365 days, which falls in the tax year more than 75% of the total number of days in the 365 day period when you do more than 3 hours work are days when you do more than 3 hours work in the UK at least one day which has to be both in the 365 day period and the tax year is a day on which you do more than 3 hours work in the UK" 4) before I lived with my wife in her parents home, my wife still there and I can join her - is it mean that I dont pass second automatic UK test as I still have overseas home and were present in it for more than 30 days in the tax year. "3.2 Second automatic UK test You’ll be UK resident for the tax year if you have, or have had, a home in the UK for all or part of the year and the following all apply: there is or was at least one period of 91 consecutive days when you had a home in the UK at least 30 of these 91 days fall in the tax year when you have a home in the UK and you’ve been present in that home for at least 30 days at any time during the year at that time you had no overseas home, or if you had an overseas home, you were present in it for fewer than 30 days in the tax year If you have more than one home in the UK you should consider each of those homes separately to see if you meet the test. You need only meet this test in relation to one of your UK homes."

Hi Sascha,
You are correct.
Thank you. 

So Do I need to open Self employment in UK or pay some taxes or fill any document about foring income (self assesment)?

Slightly similar case. I arrived in the UK on 7th Feb 2023, and have been working here full time since. I do not fall under automatic UK Residence test 1 and 2 for 2022-23. The third case – which is the full time work case – seems to apply. However, as of my returns filing date for 2022-23, that is 31st January 2024, I would NOT be completing my 365 days of full time work in UK. The SRT asks "Did you work full time" - the word "did" gives a perception that I should have already worked for 365 days to answer "yes" to this question. So I cannot claim to be a resident in this case. However, If I do the SRT on any date after 7th February 2024, I would meet the test requirements for the Tax year 2022-23. So am I a resident or not for the year 2022-23 as per the “Full time work” rule? (assuming I am not a resident as per other rules) Regards

Hi Yevhen,

HMRC cannot advise you on your residence status as this needs to be determined by you using the guidance available here:

RDRM12000 - Residence: The SRT: Split year treatment

Thank you.

Hi,
You will need to look at the guidance on residence at RDR1 and take the statutory residence tests, to work out your residence position and confirm if split year treatment applies:
RDR3 Statutory Residence Test
If you are tax resident in the UK for the whole tax year, split year treatment doesn not apply and you have no foreign income; then a tax return is not required.  
In all other situations, a tax return is required.
Thankyou.

so I am not a resident for 23/24 tax year as Statutory Residence Test say (I am on Homes fro Ukrain scheme). That is mean that I need to fill tax return? do I need to pay national insuarence? What is mean split year treatment applies? Maybe you can suggest where I can get more acurate and dynamic consultation? I want to do all in right way but it is seems that I cant do it by myself...

Hi Yevhen,
Where split year treatment applies, there will be two periods in the tax year.
One where you are not resident for tax purposes and the other where you are.
In the not resident for tax purposes period of the tax year, you would only declare any UK income and capital gains that arise in that period.
In the other period, where you are resident for tax purposes, you will declare all of your world-wide income and capital gains on the tax return.
We can only provide general advice in this forum.
If you require more detailed information, you will need to contact our Self Assesment helpline on 0300 200 3310 or contact our webchat facility here: 
Self Assessment: general enquiries
You also have the option to seek the advice of a professional.
Thank you.