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Where Taxpayers and Advisers Meet

Do unpaid holidays affect non-residency status?

bubu
Posts: 66
Joined: Wed Aug 06, 2008 3:24 pm

Do unpaid holidays affect non-residency status?

Postby bubu » Thu May 30, 2019 1:08 pm

Hello,

I work full-time for an English school in Asia. (40 hours a week). My contract says I have that I officially have 10 days annual leave, and this becomes 14 days with the weekends added. I am currently non-resident in the UK for tax purposes and wouldn't want to jeopardize my non-resident status by mistake.

My question is, if I take a further 10 days unpaid leave, making my holiday to the UK 24 days, will this in any way affect my non-residency in the UK? As far as I am aware, as long as I am back in the UK for less than 30 days per tax year then there should be no problem. Would taking 10 days unpaid leave from my job have any affect on my non-residency status?

Many thanks.

AGoodman
Posts: 805
Joined: Fri May 16, 2014 3:47 pm

Re: Do unpaid holidays affect non-residency status?

Postby AGoodman » Thu May 30, 2019 6:54 pm

The only time it could make a difference is if you were relying on split year treatment in the year of departing the UK but even then I very much doubt it makes any difference.

bubu
Posts: 66
Joined: Wed Aug 06, 2008 3:24 pm

Re: Do unpaid holidays affect non-residency status?

Postby bubu » Fri May 31, 2019 7:46 am

Thanks AGoodman for the reply.

I returned to the UK in May 2018 after having worked full-time overseas so I guess my split year is from May 2018, the date I returned to the UK. However, I also departed the UK again to work full-time in Asia for another school in December 2018.

Based on this information, and based upon your reply, would taking 10 unpaid days off from my work and adding them to my 10 days paid leave jeopardize my non-resident for tax purposes status in the UK, or not? I plan to go home for my holiday in July 2019, which ofcourse is a difeent tax year to my split year n 2018/2019.

I would really appreciate further information.

Many thanks.

AGoodman
Posts: 805
Joined: Fri May 16, 2014 3:47 pm

Re: Do unpaid holidays affect non-residency status?

Postby AGoodman » Fri May 31, 2019 11:44 am

No, I can't see how.

maths
Posts: 7539
Joined: Wed Aug 06, 2008 3:25 pm

Re: Do unpaid holidays affect non-residency status?

Postby maths » Sun Jun 02, 2019 7:35 pm

So long as you satisfy the third automatic overseas test for 2019/20 you will remain non-resident.

You will not spend 91 days or more in the UK.

Will you have a significant break? This requires at least 31 days on which there is not one day on which more than 3 hours work is done overseas (or not one of the days is a day on which more than 3 hours work would have been done but for being, for example, on annual leave).As you would not appear to satisfy these conditions no significant break arises (ie maximum period of non-work is 24 days).

bubu
Posts: 66
Joined: Wed Aug 06, 2008 3:24 pm

Re: Do unpaid holidays affect non-residency status?

Postby bubu » Wed Jun 05, 2019 2:15 pm

Thanks maths.

I will be back in the UK for a holiday for 25 days, then I will return to live and work overseas again. I presume this is not a significant break. This is well under the 91 days allowed. Am I allowed to be back in the UK for up to 30 days at one time, is that right?


My only concern is that I have 10 days paid holiday, 14 if you include the weekends. Then the other days, about 9 will be unpaid, totalling 25 days altogether. Would it matter if I have 9 days unpaid holidays, and would 9 days unpaid holiday jeopardise and affect my non-residency at all, or not? Or is the important thing that I am back for under 91 days and that I work fulltime overseas?


Thanks.

maths
Posts: 7539
Joined: Wed Aug 06, 2008 3:25 pm

Re: Do unpaid holidays affect non-residency status?

Postby maths » Thu Jun 06, 2019 1:47 pm

The key issue is not to stay in the UK for 31 days to avoid complications. 30 days is technically ok but the less days you can spend in the UK the better.

Don't forget you also ned to achieve the minimum work hours over the tax year.


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