"Full-Time Work Abroad" Definition

[pound1]

The draft Uk tax residency rules applicable from April 2012 states that a person is non-tax resident if they:

"Leave the UK to carry out full-time work abroad, provided they are present in the UK for fewer than 90 days in the tax year....."

If a person has a rotational work pattern, say working 30 days on (7 day week / 12 hour day) and 30 days off, does this count as "full-time work", given that they will work for 6 months out of 12 months? Note that the hours worked in the 6 months is, more or less, the same as the number of hours worked by an employee working a standard 8 hour day / 5 day week + vacation / national holidays work pattern.

Will they be entitled to spend 90 days in the UK whilst remaining non-tax resident?

Or will this work schedule be considered as not full time, and therefore they will be entitled to spend fewer than 90 days in the UK whilst remaining non-tax resident (the exact number depending on their other circumstances?

Regards.

[Lambs]

P,

This is only part of the answer as from memory there is scope for (say) oil-rig workers, etc. but here is HMRC's commentary at RDRM10110 - Residence: Leaving the United Kingdom: Leaving the UK for full-time employment abroad

UK tax law does not give a definition of full-time employment and so the decision on whether an individual is employed full-time abroad will depend on the particular circumstances of each case.

If an individual says that they are working abroad full-time we would expect that they would be able to show their employment

has a standard pattern of hours which can be compared to a typical UK working week, or
if their employment does not have a formal structure or a fixed number of working days, it can, by looking at the local conditions and practices of the particular occupation, be compared to similar full-time employment in the country where they are working.

I am sure there is further provision for occupations such as pilots, divers and the like where it's not possible to 'do' a normal working week.

Hope this helps some.

Regards,

Lambs

[maths]

If the routine to which you refer is the standard in the particular industry then in principle the work ought to qualify as full-time work abroad.

However, if time spent in the UK in a tax year is 183 days or more then UK residency will continue.

The les than 90 days in UK must also be satisfied.

[Lambs]

Cheers M,

Lambs

[thehiker99]

I am in a similar industry.
4 weeks on, 7 days a week, 12 hours a day, then 4 weeks off.

It's comparable with North Sea Offshore workers. Only difference is they tend to work 2 on, 2 off.
Due to the fact that I'm in the Middle East, with all the travelling involved, we do 4 weeks on and 4 weeks off. It's pretty standard for the Oil and Gas Exploartion Industry, worldwide.

This equates to around 2200 hrs a year.

A person in a "normal" 35 hour week job in the UK works around 1900 hrs a year. I would therefore say that there is no way that HMRC could say that you are not in Full Time Employment.

If you have a contract of employment, and then spend 3 months of your 6 months off a year in the UK, and the other 3 months, travelling/on holiday etc, and you do this for at least one complete tax year, then your overseas earnings should be tax free.

The Hiker