Tax investigation year 2012/13.
I lived in Portugal, British citizen, was non resident Uk, but also non tax resident in Portugal due not spending 183 days of the year there. At the time I was advised in Portugal that I did not meet the criteria to be tax resident.
Had a job in which I travelled extensively, paid tax on the uk part of my income and filed tax return in the Uk. I did not pay tax anywhere on the worldwide part of my income.
Re the investigation which was looking carefuly at my residence status, I sent a large pile of documents to HMRC last year in response to a series of questions, which proved beyound any reasonable doubt that the centre if my life that year was in Portugal. (rented flat, family there, full utility bills in my name and all backed up by spending patterns on bank account statements and flight tickets , only 45 midnights spent in the uk because of my job, no house, car, social ties etc there.
HMRC had incorrect information and investigation probably initiated due to them thinking that I owned a property in the Uk, which they have now accepted I dont.
Officer dealing with case apparently unwilling to close the case, although he must know that by all other criteria looked at I was non resident Uk, and is wanting me to become retrospectively tax resident in Portugal for the year concerned.
My questions are:
1. Is my tax status in Portugal even relevant in determing my uk residence status? I can not find any law, criteria mentioning this, and I note that the statutory residence test which is a highly prescriptive document does not make and mention of taking up residence elsewhere as a determining factor. Also, the uk does not have worldwide tax so I am not obliged to pay tax on worldwide earning if unable to prove that I have paid elsewhere.
2: i was a fiscal nomad. Does hmrc tend to accept this? Is fiscal nomad a legally acceptable status?
3: is there any law or legislation anywhere saying that one has to be tax resident somewhere?
I wonder if anybody could give me a definitive answer in this as I need to know exactly where I stand legally with this investigation, and would really appreciate an expert opinion.
Thanks very much.