Keeping non-uk resident status for last year

[BrianY]

Dear all, Can I please ask for your advice on my tax status for 2019-2020 tax year. For the past 10 years I have worked overseas but my job came to an end and since late January I have been in the UK searching for a new overseas job. Including a couple of other short stays I will have 95 days in the UK at the end of the tax year if I am still here.
I am confused over the ties to the UK test and want to avoid any risk of paying UK tax on my overseas earnings for the year. I think the relevant information is that I have a house in the UK where I have lived. I own another BTL property. I am married with wife and university age daughter who are resident in the UK. I spent very few days in the UK each year for the last 5 years (<45). I have had no work days in the UK.
Will I be OK to put down 95 days or do I need to get out of the country for 5 days to be safe. Thanks in advance.

[etf]

From the information provided, it does not look as though you will be able to meet any of the automatic overseas tests to be regarded as non-UK resident in 2019/20.

Before you look at the tie-breaker sufficient ties test, you must first establish whether any of the automatic UK tests will find you to be UK resident (in particular the 2nd automatic UK test). Have you reviewed these tests? If not, I suggest you do so because you cannot access the sufficient ties test until you have concluded that you are neither non-resident under the automatic overseas tests nor resident under the automatic UK tests.

[darthblingbling]

There will also be split year treatment to consider as well which effectively mean that you're only resident from a certain date and not the whole year, if applicable.

[BrianY]

@etf - thank you for your reply. I have reviewed the tests as below;

1st Automatic overseas test - 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. – Failed as 90 + days in UK
2nd automatic overseas test - non-UK resident for the tax year if you were resident in the UK for none of the 3 tax years before the current tax year, and spend fewer than 46 days in the UK in the tax year. – failed 90 + days
3rd test -- non-UK resident for the tax year if you work full-time overseas over the tax year and:
• you spend fewer than 91 days in the UK in the tax year – I can do this
• the number of days on which you work for more than 3 hours in the UK is less than 31 – No work in the UK
• there is no significant break from your overseas work – I think I am OK with this

Second automatic UK test
• there is or was at least one period of 91 consecutive days when you had a home in the UK – Yes have a permanent home
• at least 30 of these 91 days fall in the tax year when you have a home in the UK and you’ve been present in that home for at least 30 days at any time during the year – I have been present for more than 30 days.
• at that time you had no overseas home, or if you had an overseas home, you were present in it for fewer than 30 days in the tax year - most of the time I have been in my overseas home

I think I presently have three ties to the UK so as there is a cut off for 120 days in country do I need to get below 91 days.

[BrianY]

@darthblingbing
Thank you as that is reassuring news. I hope to start a new position in about 3 weeks overseas so I would like to keep my same status if possible just to avoid complications.

[etf]

• there is no significant break from your overseas work – I think I am OK with this

Your initial post suggested you may have a significant break from overseas work in 2019/20 which will mean you cannot qualify as NR under the 3rd automatic overseas test. Have you checked the definition of a significant break from overseas work?

[BrianY]

I did some minor consultancy work for my old company but that was more in the hope of being re-employed on a new job. If this is not considered enough for the 3rd automatic overseas test what do you think is my position.

[darthblingbling]

Fyi if you stopped working overseas since late Jan then you will have a significant break from overseas work and the third automatic overseas test will not apply.

If you then only had a home in the UK since Jan then you may pass the 2nd UK test

[marcandre]

Fyi if you stopped working overseas since late Jan then you will have a significant break from overseas work and the third automatic overseas test will not apply.

If you then only had a home in the UK since Jan then you may pass the 2nd UK test

If he passes the 2nd UK test does that mean split treatment cannot apply or it would still apply?

[etf]

If UK resident status is established, it is then necessary to consider the split tax year provisions to see whether the tax year can be split into an overseas period (taxed as a NR) and a UK period (taxed as a R).