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Where Taxpayers and Advisers Meet

Split tax year - which of work, invoice or cash dates to consider?

nordman
Posts:7
Joined:Thu Dec 24, 2020 3:06 am
Split tax year - which of work, invoice or cash dates to consider?

Postby nordman » Thu Dec 24, 2020 8:02 pm

I came to UK on January 2018 for a full time job (39ish hour/week), rented a room in a house share and stayed in the country like normal and left few times (max 50 days/calendar year) but have no family in UK. However, my wife and belongings stayed in France until we confirm that everything is fine to fully relocate.

We have ceased the French renting and relocated our belongings on 01st of December 2018.
My wife remained 1 month in her parents house until the end of her full time employment (31st of December 2018), then came to UK on the 3rd of January 2019.

The SRT Split year treatment, confuses me, because "Case 4: Starting to have a home in the UK only" applies to me. But, not sure about the "Case 5: Starting full-time work in the UK" (complex English and logic that I can't understand).
Based on that, shall I consider that I became UK tax resident since the 1st of December 2018 or 3rd of January 2019?

Depending on that, I have multiple invoices (sole trader for work done abroad) with different work date, invoice date and payment date. Which date shall I pick? The ideal will be the work date, as I have done the overseas work abroad before January 2019. I have also declared that income abroad, as I thought I was tax resident there. Because I didn't declare that UK split year income, I will certainly have a HMRC penalty to pay :oops:, so the less I declare, the better it will be. We are talking about max £10k and min £0.

Thanks for your help

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