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residency pandemic

It is being widely reported in the press that HMRC are targeting individuals that have claimed non-resident status for UK tax purposes during the Covid-19 pandemic.

As we well know the pandemic caused a severe impact not only on our health, but every area of our lives including the ability to travel freely.  The closure of boarders resulted in airlines being grounded and not providing domestic flights for quite some time.

These travel restrictions meant that in some cases individuals that would normally be a non-resident of the UK for tax purposes might have triggered residency due to these exceptional circumstances.

The UK’s residency rules are complicated compared to most other jurisdictions and are contained in a complex set of rules known as the ‘statutory residence tests’ or ‘SRT’ for short.  In most cases if you were stuck in the UK due to the pandemic you would have triggered residency here under the SRT. HMRC did however recognise the exceptional circumstances of the pandemic and took steps to help mitigate the residency risks they posed by introducing further special measures during the outbreak. Although most in the expat tax industry felt these weren’t generous enough and as a result many taxpayers triggered UK residency despite the extra concessions introduced by HMRC.

At TAP we are tax residency experts; we can help you review your residency status and ensure that no stone is left unturned when considering whether you are UK resident or non-resident and which jurisdiction has the right to tax your earnings.  We also specialise in assisting dual residents and considering which country they are treaty resident in.

So, if you have been targeted by HMRC for a residency review and require professional help to review your status, please do not hesitate to contact us.