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Where Taxpayers and Advisers Meet

Tax residency status - advice please

JOHNRE
Posts: 68
Joined: Sat Feb 06, 2016 2:03 pm

Tax residency status - advice please

Postby JOHNRE » Mon Nov 19, 2018 4:44 pm

I have just downloaded a 105 page document from HMRC but, before I start wading through it, I thought I would ask for some guidance here first.....

My son is currently working in Vietnam. I act as his Agent for HMRC whilst he is temporarily working abroad. Some time ago I contacted HMRC and we agreed that he was tax resident in Vietnam and would not have to submit U.K. tax returns.

At the end of this tax year he will be going to work and live in Costa Rica. He will be in Costa Rica for the whole of the tax year, is unlikely to spend any days in the U.K. and will be working about 12 hours a week (so very part-time).

So, the question is, will be be tax resident in th U.K. or in Costa Rica for 19/20? Any advice, or links, would be much appreciated.

maths
Posts: 7450
Joined: Wed Aug 06, 2008 3:25 pm

Re: Tax residency status - advice please

Postby maths » Mon Nov 19, 2018 5:02 pm

Non-resident.

Under first automatic overseas test he is non-resident for 20/21 as he was non-resident for 19/20 and will not spend 16 days or more in UK in 20/21.

JOHNRE
Posts: 68
Joined: Sat Feb 06, 2016 2:03 pm

Re: Tax residency status - advice please

Postby JOHNRE » Mon Nov 19, 2018 5:36 pm

Thanks for your prompt reply, Maths but I am confused by the dates you have used in your reply. Can you confirm that you believe my son will be non-resident in the U.K. for tax purposes for the 2019-20 tax year?). (He is likely to return to the U.K. in 2020).

maths
Posts: 7450
Joined: Wed Aug 06, 2008 3:25 pm

Re: Tax residency status - advice please

Postby maths » Mon Nov 19, 2018 5:41 pm

Non-resident.

Under first automatic overseas test he is non-resident for 19/20 as he was non-resident for 18/19 you said and will not spend 16 days or more in UK in 19/20.

If was non-resident for 16/17, 17/18 and 18/19 then he could spend up to 46 days in UK in 19/20.

JOHNRE
Posts: 68
Joined: Sat Feb 06, 2016 2:03 pm

Re: Tax residency status - advice please

Postby JOHNRE » Mon Nov 19, 2018 5:50 pm

Thank you, Maths. I appreciate your help. John

AGoodman
Posts: 609
Joined: Fri May 16, 2014 3:47 pm

Re: Tax residency status - advice please

Postby AGoodman » Tue Nov 20, 2018 1:06 pm

Bear in mind: the question is purely whether he is tax resident in the UK.
Whether or not he is tax resident elsewhere is pretty much irrelevant. You can be resident in 2 countries or in none (if you keep moving).


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