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Posted Tue, 24 Aug 2021 16:03:25 GMT by piloty87
Can HMRC add guidance on the Statutory Residence Test when it is impossible to return to the UK due to UK Government Covid restrictions? At present, guidance relates only to people unable to leave the UK as planned. I had a flight to the UK cancelled last year due to Covid restrictions. When I came to rebook, the country I was in (where I have residency and so can stay indefinitely) was added shortly afterwards to the UK red list of countries with a specific request from the UK Government to avoid travel to the UK. I did not view meeting standard tax residency criteria as sufficient reason to risk bringing a new variant to the UK and explained the situation on my self-assessment tax return covering that period, but have heard no further (which is unsurprising given the difficult time we are going through). My income is in the UK, so I declared it in the UK and paid tax anyway for that reason. I imagine no specific guidance can be given here – I see on other threads referrals to existing guidance - but none of that is relevant to this situation. Can adding this be considered? Please let me know if something does exist and I've just been unable to find it.
Posted Wed, 25 Aug 2021 14:01:06 GMT by HMRC Admin 17

Hi,
 
Please see guidance here regarding the effects of COVID on our residence tests:

Residence, Domicile and Remittance Basis Manual   .
  
Thank you.
Posted Thu, 26 Aug 2021 14:02:59 GMT by piloty87
The link you have provided is not relevant to my question. Having studied the information on the link, all the modifications to the Statutory Residence Test relate to discounting days spent in the UK and only cover the period from 1 March 2020 to 1 June 2020 My question relates to being unable to return to the UK due to UK Government travel restrictions. I have paid tax in the UK for 2020-2021 as my income is in the UK, but I have not been able to spend time in the UK due to my flight being cancelled in 2020 then the country I am currently in being placed on a UK Government red list at the beginning of 2021 with a request not to travel. To repeat my original request, can HMRC add guidance on the Statutory Residence Test for when it is impossible to return to the UK due to UK Government Covid restrictions? At present, guidance relates only to people unable to leave the UK as planned.
Posted Mon, 13 Sep 2021 07:47:58 GMT by HMRC Admin 10
Hi

Thank you for your patience with regards to this scenario.

HMRC does not intend to update the guidance for individuals who have spent less time in the UK due to the Covid-19 pandemic.

You should self-assess in the normal way based on the actual days you have spent in the UK.

There are 3 Automatic overseas tests, 3 Automatic UK tests and the Ties test.

RDRM11040 sets out the order in which each of the tests should be applied to reach a decision on your status.

It will be up to you to work your way through the tests and self-assess accordingly.

Additionally, if you have now ceased work for your part-time UK employer and are now self-employed providing services online you  should refer to RDRM11770 from which can be seen that work is considered to be done at the location where it is actually done rather than where the employment is held or the trade, profession of vocation is carried on.

So if you are in Brazil when doing your job such duties would be regarded as work done overseas.

The taxation of this income will depend on your residence status and where you perform your work.

More information regarding the taxation of different types of income depending on your residence status is available in booklet RDR1 which can be found at :

Special rules for certain occupations

Thankyou.

Regards.
 

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