Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Fri, 16 Oct 2020 18:54:29 GMT by logilee
Hi, My income comes solely from IT consulting and software development. The work was done remotely and not on British soil (whilst I lived in a variety of countries, none of which were the UK). The clients were small startups one of which is UK-based (and paid me to UK bank), but also a Californian client found through the service UpWork who paid me through that site. The money was usually withdrawn to a UK bank account. This is my sole source of income over 2019/2020 and will be over 2020/2021. In 2018/2019, I was in the UK for a couple of months and I DID register and pay tax to the UK government in Jan 2020 for this year. However, for 2019/2020 and 2020/2021 I will be entirely overseas. Regarding the SRT, I passed the "first automatic overseas" part of the test "You’ll be non-UK resident for the tax year if you were resident in the UK for one or more of the 3 tax years before the current tax year, and you spend fewer than 16 days in the UK in the tax year." Since in 2019/2020 (and I will also in 2020/2021) I spent fewer than 16 days in the UK in those tax years but was a tax resident in 2018/2019. I have no ties like owning a home in the UK, and have never owned a home there. I don't think I pass any of the "automatic UK tests". My understanding of this situation is no tax is due to the UK because of being non tax resident. However I worry because it's not like I emigrated to another country where now I pay tax. I simply am moving around. Would HMRC consider me a "de facto" tax resident somehow? Or claim that because I have a UK bank account and one client based there this is enough? Even if all the work I did was never on UK soil, and I didn't set food there? Thanks for any help
Posted Tue, 20 Oct 2020 14:39:25 GMT by HMRC Admin 2
Hi,

If you meet the first automatic test as a non resident then you would not be expected to report any tax to the UK.

The fact that you have no permanent residence in another country does not affect this. That only needs to be considered if you are claiming exemption under a double taxation agreement. This is not the case here.

Having a UK bank account will not affect your residency status either. 

Thank you.
Posted Tue, 20 Oct 2020 15:39:15 GMT by logilee
Thank you. Wow, this is completely different advice from that which I got from HMRC customer support last week, who then went on to register me for self-assessment based on the fact I had no residency outside the UK, despite the fact I hadn't spent a day there. Is your answer the official HMRC policy and I can trust in this? (sorry to be so pedantic but I really need to know 100%)
Posted Thu, 22 Oct 2020 09:09:44 GMT by HMRC Admin 11
Hi,

Please see guidance here regarding UK tax residency. HMRC look to tax UK residents and certain incomes for non UK tax residents such as property and capital gains.

RDR3 Statutory Residence Test

Thank you. 
Posted Tue, 23 Mar 2021 22:46:39 GMT by Chansir2021
Hi, I will find myself in a similar situation as I plan to travel abroad for the foreseeable future and work remotely. I am self-employed as a digital content creator, and some of my income comes from a UK company, and is paid into a UK bank account. I just want to double check that if I am no longer tax resident, I no longer need to file Self Assessment for this income, even though the income comes from a UK company. Thank you for your help
Posted Thu, 25 Mar 2021 11:51:57 GMT by HMRC Admin 17


Hi
 
Chansir   2021,
 
If you are non UK resident and none of the duties from the UK employer are carried out in the UK then you would not need to complete a tax return.

You can check if you have any other criteria for completing a return here:


Check if you need to send a Self Assessment tax return .


Thank you.

 
Posted Thu, 25 Mar 2021 19:05:41 GMT by Chansir2021
Thanks! I need to file for self assessment for 2020/21 , do I have to inform HMRC of my situation for 21/22 ?
Posted Tue, 30 Mar 2021 14:11:40 GMT by HMRC Admin 19
Hi,

If you need to file for 2020/21 you will need to make sure you are registered.

You can let us know once you have completed the 2020/21 tax return if you do not meet the criteria to complete a return for 2021/22.

Thank you.
Posted Fri, 02 Apr 2021 15:37:22 GMT by Chansir2021
Hi, Thanks for the advice. Under which form do I declare this? I have found this form www.tax.service.gov.uk/shortforms/form/CeaseTrading however, this is only regarding stopping self employment. I will continue self employment while abroad.
Posted Thu, 08 Apr 2021 11:55:03 GMT by HMRC Admin 17

Hi

Chansir  2021,
 
As you are going to be non resident in the UK and preforming all your self employment abroad you will be ceasing self employment in the UK so this form will be correct.

You can check if you have any other self assessment criteria for completing a return here :

Check if you need to send a Self Assessment tax return .

Thank you.

You must be signed in to post in this forum.