SRT for a person working overseas on rotation

[peter456]

I have been non-resident for tax purposes for the last 7 years, never having had more than 90 days in the UK in any of those years.

I am working on a long-term 6 weeks on (i.e. working) and 6 weeks off (i.e holiday) rotation. I do not have any annual leave in my contract, only "rotational" leave. I do no work at all in the UK. Most of my 6 week leave periods would be spent in Australia.

Assuming that I would be planning to have between 46 and 91 days in the UK, my question would be if HMRC would consider that I would be having a "significant break" from overseas work when I took my 6 weeks off work?

[maths]

The issue is whether "rotational" leave falls within the definition of "annual" leave for SRT purposes.

You say it is "holiday" leave, but I'm not convinced.

It may be that even if you cannot satisfy the full-time working abroad test (i.e. would not then be UK resident) you may still be non-UK resident because you do not satisfy any of the automatic UK resident tests or the STT.

The terms of a double tax treaty with the UK may also help.

[etf]

Hi peter456,

I wrote to HMRC as a general enquiry asking whether an individual working a 35 days on and 35 days off rota (with no annual leave entitlement) would be precluded from claiming non-UK resident status under the 3rd automatic overseas test. Their response is copied below:

With regards to the rotational worker who works 35 days on and 35 days off. Every case will depend on its facts and HMRC would need to consider the terms and conditions of the employment. However if 31 days go by and not one of those days is a day on which an individual:-

-works for more than 3 hours overseas OR
-would have worked for more than 3 hours overseas but did not because they were on annual leave, sick or parental leave

then there is a significant break and the sufficient hours test is failed

Kind regards

etf

www.theexpatriatetaxfactory.com

[maths]

Thank you etc.

I wouldn't disagree with HMRC.

[maths]

Sorry, "etf" not "etc" !

[offshoreworker]

Hi i would be interested in hearing anyone's thoughts regarding a 28/28 day rotation working offshore and overseas.

The scenario is i am just about to return to work after my 28 days leave when my employer requests i stay at home for a further 7 days on stand-by rate. This means i will have had a break from work of more than 30 days however 28 of them days were my normal leave and 7 of the days were stand-by days. Would this constitute a significant break from overseas employment.

The above scenario would not affect my total hours worked or my days allowed in the UK as per the 3rd automatic overseas test.

Also being put on stand-by is a condition of my employment.

Thanks in advance for any comments